T. Rowe Price
Group Inc provides investment advisory and administrative services to an
assortment of no load funds, sponsored investment products and private
accounts. The company has generated an 18-20%+
return on equity and a 13-15% growth rate in earnings and dividends over the 10
years. While TROW
suffered a decline in assets under management due primarily to the late
2008-early 2009 decline in stock prices, a recovery occurred in 2010 and should
continue as a result of:
(1) the
excellent track record of its funds as well as recent investor optimism
has increased the value of current
assets under management as well as attracting new customers,
(2) the
introduction of new products such as country funds,
(3) an
aggressive cost cutting program.
Negatives:
(1)
any decline in stock prices will impact assets under
management,
(2)
increasing volatile markets,
(3)
more government regulation,
(4)
a highly competitive industry.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Ind Ave 36 18 NA 17 NA
Chart
Note:
TROW stock made good progress off its March
2009 low, quickly surpassing the downtrend off its September 2008 high
(straight red line) and the November 2008 trading high (green line). Long term, it is in an uptrend (blue line is
lower boundary). Intermediate term, it
is a trading range (purple lines). The
wiggly red line is the 50 day moving average.
The Dividend Growth and Aggressive Growth Portfolios own a full position
in TROW .
The upper boundary of its Buy Value
Range Sell Half
Range
10/13
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