Core Viewpoint - Ameriprise Financial, Inc. is recognized as one of the 10 Most Profitable Undervalued Stocks to Buy, with analysts raising price targets following strong fourth-quarter earnings results [1][6]. Group 1: Analyst Ratings and Price Targets - RBC Capital analyst Kenneth Lee increased the price target for Ameriprise to $605 from $580, maintaining an Outperform rating after the fourth-quarter earnings report [1]. - Bank of America raised its price target to $660 from $642 and retained a Buy rating after updating its model post-earnings [2]. - Piper Sandler upgraded Ameriprise to Neutral from Underperform, increasing its price target to $530 from $434, citing easing headwinds and strong client flows [2]. Group 2: Financial Performance - Ameriprise reported fourth-quarter revenue of $4.96 billion, surpassing the consensus estimate of $4.74 billion [3]. - The quarter was characterized by robust client activity and strong inflows, leading to record revenue and earnings for both the quarter and the full year [3]. - The company's return on equity remains among the strongest in the industry, with over 100% of adjusted operating earnings returned to shareholders during the quarter [3]. Group 3: Company Overview - Ameriprise Financial operates as a diversified financial services company, providing financial planning and advice services to individual and institutional clients in the U.S. and internationally [4].

Core Insights - Huntington National Bank is transferring $28 billion of its bank-owned broker/dealer, registered investment advisor, and insurance assets to Ameriprise Financial Services [1] - Huntington Financial Advisors, with approximately 260 financial advisors, will continue to operate under the bank while utilizing Ameriprise for retail investment operations, gaining access to enhanced technology and financial planning tools [2][3] - The deal represents the largest transaction for Ameriprise's institutional group and comes amid uncertainties regarding its partnership with Comerica due to Fifth Third Bancorp's acquisition of Comerica [5][6] Company Overview - Huntington's parent company holds about $279 billion in assets and operates 1,400 branches across 21 states [4] - Ameriprise reported a record high of $1.2 trillion in total client assets within its advice and wealth segment, reflecting a 13% year-over-year increase [4] Strategic Moves - The transition to Ameriprise is seen as a significant step towards sustainable growth for Huntington, as stated by the director of Wealth Management [3] - Ameriprise is actively exploring opportunities in the financial institutions sector, having recently partnered with ChoiceOne Bank and others [6]

Core Insights - Ameriprise Financial, Inc. reported strong fourth-quarter earnings with adjusted earnings per share of $10.83, surpassing market expectations of $10.30 due to robust asset growth and effective expense management [1] - The company's revenue for the quarter reached $4.96 billion, exceeding the average forecast of $4.77 billion, marking a 10% year-over-year growth [1] Financial Performance - The Advice & Wealth Management division achieved pretax adjusted operating earnings of $926 million, reflecting a 13% increase and an overall margin of 29.3% [2] - Total client assets increased by 13% to a record high of $1.2 trillion, supported by strong client inflows of $13.3 billion [2] - The company enhanced its capacity to generate free cash flow, returning $1.1 billion to shareholders, which is 101% of adjusted operating earnings [2] Company Overview - Ameriprise Financial, Inc. is a diversified financial services firm based in Minneapolis, Minnesota, established in 1894, providing wealth and asset management, financial planning, insurance, and annuity services globally [3]

Core Viewpoint - Ameriprise Financial has shown strong financial performance, leading to an upgrade in its stock rating by Piper Sandler from Underweight to Neutral, with the stock priced at $521.36 at the time of the upgrade [1][6]. Financial Performance - In the fourth quarter, Ameriprise reported adjusted earnings per share (EPS) of $10.83, exceeding the Zacks Consensus Estimate of $10.29, marking a 16% increase from the previous year [2][6]. - The company experienced a 10% year-over-year rise in both adjusted operating revenues and expenses, indicating robust financial health despite rising costs [3]. Assets Management - Ameriprise achieved record levels in assets under management (AUM) and assets under administration (AUA), reaching $1.69 trillion, which is an 11% increase year-over-year [3][6]. Shareholder Actions - The company repurchased $897 million worth of shares during the quarter, reflecting confidence in its financial stability and future prospects [4]. Stock Performance - Currently, Ameriprise's stock price is $521.36, reflecting a 4.34% increase, with a market capitalization of approximately $48.44 billion [5]. - Over the past year, the stock has fluctuated between a high of $582.05 and a low of $396.14, showcasing its market volatility [5].

Core Insights - Ameriprise Financial reported a strong fourth quarter for 2025, with significant growth in revenue and earnings, driven by favorable equity markets and a positive overall environment [2][3] - The company achieved record operating metrics, including a 27% operating margin and a return on equity of 53.2%, the highest in its history [1][5] Financial Performance - Adjusted operating revenue increased by 10% to $4.9 billion, while adjusted operating earnings rose by 10% to over $1 billion, with adjusted operating earnings per share up 16% to $10.83 [2][5] - Total assets under management, administration, and advisement reached $1.7 trillion, marking an 11% year-over-year increase [6][12] Capital Return and Investments - The company returned $1.1 billion in capital during Q4 and $3.4 billion for the year, representing 88% of operating earnings, with plans for continued buybacks and investments in technology and AI [4][15] - Ameriprise holds approximately $2.1 billion in excess capital and $2.2 billion in holding company liquidity, indicating a strong balance sheet [16] Advice & Wealth Management - Advice & Wealth Management segment reported record client assets of $1.2 trillion, up 13%, with quarterly inflows of $13.3 billion, an 18% increase [5][7] - The Retirement Account Program assets increased by 17% to $670 billion, with net inflows of $12.1 billion in the quarter [7][11] Asset Management and Performance - Asset management operating earnings rose by 17% to $293 million, with revenues increasing by 12% to $1.0 billion, attributed to asset growth and higher performance fees [13] - The company had 103 four- and five-star Morningstar-rated funds at year-end, with a significant percentage of funds performing above the median over various time frames [12] Future Outlook - Management plans to continue investing in technology and digital capabilities while managing expense growth within historical ranges, with expectations for single-digit growth in AWM G&A [17][18] - The company remains optimistic about recruiting and retention, despite competitive advisor movement [18]

Core Insights - Ameriprise Financial (AMP) reported fourth-quarter 2025 adjusted operating earnings of $10.83 per share, exceeding the Zacks Consensus Estimate of $10.29, marking a 16% increase from the previous year [1] - The company's shares rose by 5.2% in pre-market trading following the announcement of better-than-expected results [1] Financial Performance - Adjusted operating total net revenues for the quarter were $4.92 billion, a 10% year-over-year increase, surpassing the Zacks Consensus Estimate of $4.71 billion [4] - Total GAAP net revenues also increased to $4.96 billion, reflecting a 10% rise year-over-year [4] - Quarterly adjusted operating expenses reached $3.58 billion, up 10% year-over-year [4] - For the full year 2025, adjusted operating earnings were $39.29 per share, exceeding the Zacks Consensus Estimate of $38.72, and reflecting a 14% increase from the previous year [3] Assets Under Management - As of December 31, 2025, total assets under management (AUM) and assets under administration (AUA) reached a record $1.69 trillion, up 11% year-over-year [4][8] - The increase in AUM and AUA contributed positively to the company's revenue growth [6] Share Repurchase Activity - Ameriprise repurchased 1.8 million shares for $897 million during the reported quarter [5] Competitive Positioning - The company is positioned for strong top-line growth due to its robust AUM balance and ongoing business restructuring initiatives, although rising expenses, particularly from technology upgrades, may impact profitability [6]

Core Insights - Ameriprise Financial Services (AMP) reported a revenue of $4.92 billion for the quarter ended December 2025, marking a year-over-year increase of 10.2% and exceeding the Zacks Consensus Estimate by 4.45% [1] - The earnings per share (EPS) for the same period was $10.83, up from $9.36 a year ago, representing a surprise of 5.27% over the consensus EPS estimate of $10.29 [1] Financial Performance Metrics - Total Assets Under Management reached $1.3 billion, slightly above the average estimate of $1.29 billion [4] - Total Assets Under Administration were reported at $355.5 million, compared to the estimated $349.71 million [4] - Total Assets Under Management, Administration, and Advisement totaled $1.69 billion, exceeding the average estimate of $1.63 billion [4] - Management and financial advice fees generated revenues of $3.1 billion, a 14% increase year-over-year, surpassing the average estimate of $2.89 billion [4] - Revenues from Asset Management were reported at $1.04 billion, exceeding the average estimate of $924.22 million, reflecting an 11.7% year-over-year change [4] Stock Performance - Ameriprise shares have returned +1.9% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Ameriprise Financial (AMP) shares have underperformed over the past year, losing approximately 13% of their value due to concerns about peaking revenue from cash sweep amid Federal Reserve rate cuts [1] Company Performance - The decline in Ameriprise's stock value is attributed to worries regarding revenue generation from cash sweep operations, which are impacted by the recent Federal Reserve rate cuts [1]

Core Viewpoint - Ameriprise Financial (AMP) shares have underperformed over the past year, losing approximately 13% of their value due to concerns about peaking revenue from cash sweep amid Federal Reserve rate cuts [1] Company Performance - The decline in Ameriprise's stock value is attributed to worries regarding revenue generation from cash sweep operations, which are impacted by the recent Federal Reserve rate cuts [1]

Financial Data and Key Metrics Changes - Ameriprise reported adjusted operating revenue growth of 10% to $4.9 billion in Q4 2025, driven by strong organic client flows and market performance [14][25] - Earnings per share increased by 16% to $10.83, with a return on equity reaching a record high of 53.2% [14][15] - Assets under management, administration, and advisement grew to $1.7 trillion, up 11% year-over-year [15][25] Business Line Data and Key Metrics Changes - Advice & Wealth Management (AWM) adjusted operating net revenues increased by 12% to $3.2 billion, benefiting from higher client assets and activity levels [29] - The RAP business saw assets increase by 17% to $670 billion, with net inflows of $12.1 billion in the quarter [27][16] - Asset management operating earnings rose by 17% to $293 million, with total assets under management and advisement reaching $721 billion, up both year-over-year and sequentially [32] Market Data and Key Metrics Changes - Total client assets reached a new record of $1.2 trillion at year-end, up 13% from focused actions to drive flows and positive market conditions [15][27] - Total client inflows were $13.3 billion, up 18%, marking one of the best quarters for flows [16][27] - Transactional activity increased by 5% year-over-year, primarily from growth in annuity products and brokerage [28] Company Strategy and Development Direction - The company is focused on investing in technology, digital capabilities, AI, and cloud infrastructure to enhance client and advisor experiences [15][24] - Ameriprise aims to leverage its diversified revenue streams and effective expense management to sustain strong financial performance even in challenging environments [8][15] - The firm is committed to maintaining a competitive edge through continuous innovation and enhancing its value proposition for advisors [9][18] Management's Comments on Operating Environment and Future Outlook - Management noted a fluid operating environment with elevated inflation and interest rate changes impacting the market, but expressed confidence in the company's resilience and relevance [7][14] - The outlook for 2026 remains positive, with expectations for continued organic growth and strong recruiting momentum [60][61] - Management emphasized the importance of maintaining a strong advisor value proposition and client satisfaction to drive future growth [18][19] Other Important Information - Ameriprise returned over 100% of operating earnings to shareholders in Q4 2025, with a total capital return for the year reaching nearly 90% [25][36] - The company was recognized as one of America's Most Iconic Companies by TIME and included in several prestigious rankings for management and responsibility [23][24] Q&A Session Summary Question: Can you help reconcile the acceleration in net new flows with the lower distribution expense ratio? - Management noted strong flows in Q4 were driven by organic growth and improved advisor productivity, with distribution expenses aligned with revenue growth [38][40] Question: What should we expect for 2026 growth in firm-wide OpEx and G&A growth within AWM? - Management indicated continued investment in technology and services while also transforming the expense base to maintain efficiency [44][48] Question: Can you provide more color on the strong results in Q4 2025 and expectations for early 2026? - Management highlighted strong organic growth and advisor retention, with a positive outlook for recruiting and flows [51][53] Question: How should we think about the buyback going forward? - Management expressed confidence in returning capital to shareholders, maintaining a range of 85%-90% for capital return based on current capabilities [54][55] Question: What does the consolidation opportunity look like for asset management? - Management acknowledged ongoing consolidation in the industry but emphasized their strong technology capabilities and product offerings to attract assets [98][100]