T. Rowe Price Group, Inc. (NASDAQ:TROW) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 11, T. Rowe Price Group, Inc. (NASDAQ:TROW) announced its assets under management for January 2026. ​The company reported $1.797 trillion in assets under management, up from $1.776 trillion in January 2025. The major increase was recorded in multi-assets, which grew from $627 billion a year ago to $646 billion in 2026. Moreover, both the fixed income and alternatives grew by $1 billion during the year. La ...

Core Insights - T. Rowe Price's research indicates that active management strategies can enhance core portfolio returns, potentially capturing excess returns that passive index funds miss [1] - Generating an additional 25 basis points (0.25%) in annual returns over 40 years could equate to two extra years of retirement spending, while 50 basis points could add five years [1] - The report emphasizes the opportunity cost of maintaining passive core holdings, suggesting that active strategies can utilize capital more efficiently [1] Active Management Strategy - T. Rowe Price's active core strategies aim for a tracking error of 50 to 100 basis points, allowing for consistent performance relative to benchmarks while enabling diversified stock selection [1] - The strategy avoids large concentrated bets, instead opting for smaller overweight and underweight positions across a broad range of securities [1] - Effective risk management is crucial, involving not only position size control but also guarding against unintended exposures to stocks that may trade similarly due to thematic influences [1] Research Methodology - The firm's approach combines fundamental research from equity analysts with quantitative analysis of historical market data to exploit market inefficiencies [1] - The report highlights that markets often focus on short-term outcomes, leading to price dislocations that can benefit long-term investors [1] - T. Rowe Price's dual-engine design aims to address how markets evaluate company-specific situations against historical precedents [1]

Company Overview - T. Rowe Price Group, Inc. has a market cap of $20.3 billion and operates as a global investment manager serving various clients including individuals, institutions, and retirement plans [1] Stock Performance - Over the past 52 weeks, TROW shares have decreased by 12.6%, while the S&P 500 Index has returned 12.5% [2] - Year-to-date, TROW shares are down 8.5%, contrasting with a marginal gain in the S&P 500 [2] Recent Financial Results - On February 4, T. Rowe Price Group's shares fell by 5.5% following Q4 2025 results, which included weaker-than-expected adjusted EPS of $2.44 and revenue of $1.93 billion [4] - The company experienced net client outflows of $25.5 billion, with $23.2 billion attributed to equity outflows [4] - Adjusted operating expenses rose to $1.25 billion from $1.13 billion in Q3 [4] Earnings Forecast - For the fiscal year ending December 2026, analysts project T. Rowe Price Group's adjusted EPS to grow by 3.8% year-over-year to $10.09 [5] - The company's earnings surprise history is mixed, with three beats and one miss in the last four quarters [5] Analyst Ratings and Price Targets - Among 14 analysts covering T. Rowe Price Group, the consensus rating is a "Moderate Sell," consisting of nine "Hold" ratings, one "Moderate Sell," and four "Strong Sells" [5] - Morgan Stanley has cut its price target on T. Rowe Price Group to $115 while maintaining an "Equal Weight" rating, with a mean price target of $100.33 indicating a nearly 7% premium to current price levels [6] - The highest price target of $115 suggests a potential upside of 22.6% [6]

Investment Overview - As of December 31, 2025, the company had seed capital investments totaling $1.1 billion and co-investments of $0.3 billion in alternative products[32]. - The total fair value of investments as of December 31, 2025, was $2,026.3 million, with a potential loss of $303.8 million, representing a 15% decrease[303]. - T. Rowe Price's investments in discretionary investments were valued at $463.7 million, with a potential loss of $46.4 million, or 10%[303]. - T. Rowe Price's investment in redeemable seed capital investments was $316.1 million, with a potential loss of $42.6 million, or 13%[303]. - T. Rowe Price's investments used to hedge deferred compensation liabilities were valued at $1,243.3 million, with a potential loss of $214.5 million, or 17%[303]. - The cumulative translation loss related to the investment in UTI was $57.4 million at December 31, 2025[306]. Revenue Sources - Nearly 55% of the company's investment advisory fees are derived from U.S. mutual funds, with the remainder from collective investment trusts, subadvised funds, and separately managed accounts[37]. - Performance-based investment advisory fees are recognized when returns exceed the stated hurdle, leading to variability in revenue recognition year-to-year[40]. Client and Market Reach - The company services clients in 60 countries, with investors outside the U.S. accounting for nearly 9% of total assets under management at the end of 2025[34]. - The company distributes its products through five primary channels across three geographical regions: Americas, EMEA, and APAC[34]. Investment Strategies - The company manages a diverse range of investment strategies across equity, fixed income, multi-asset, and alternatives, designed to meet the changing needs of investors[27]. - The Capital Appreciation Strategy has been closed to new investors since 2014, representing approximately 6% of total assets under management as of December 31, 2025[33]. - The company has diversified its investments among various fixed income products to manage market risk[299]. Regulatory and Competitive Environment - The company is subject to extensive regulations that could impact its operations, including compliance with laws related to cybersecurity and climate-related disclosures[46]. - The company is subject to substantial competition from various financial institutions, including hedge funds and banks[53]. Human Resources - As of December 31, 2025, T. Rowe Price employed 7,773 associates, a decrease of 4.7% from 8,158 associates at the end of 2024[57]. - T. Rowe Price's talent acquisition strategy has been recognized, being named among Fortune's World's Most Admired Companies[62]. - The company offers comprehensive benefits, including health care and retirement benefits, to support associates' well-being[64]. Operational Considerations - Investment management agreements allow for termination with short notice, which could materially affect the company's results if U.S. mutual fund agreements are terminated[39]. - The company provides various administrative services, including mutual fund transfer agent and fund accounting, to a range of clients[43].

Core Insights - T. Rowe Price Group, Inc. (TROW) reported preliminary assets under management (AUM) of $1.80 trillion as of January 31, 2026, marking a 1.2% increase from the previous month despite net outflows of $5.2 billion, which were partially mitigated by favorable market performance [1][11] AUM Breakdown - As of the end of January, T. Rowe Price's equity products remained at $879 billion, unchanged from December 2025. Fixed income products increased slightly to $213 billion, while multi-asset products rose nearly 3% to $646 billion, indicating strong client demand. Alternative products also saw a 1.7% increase to $59 billion [2][11] - The company's target-date retirement portfolios reached $580 billion, reflecting a 3.4% increase from the prior month, showcasing the strength of its retirement-focused offerings [3] Growth Trends - Over the five-year period from 2020 to 2025, T. Rowe Price's AUM experienced a compound annual growth rate (CAGR) of 3.8%, driven by market appreciation and sustained demand for multi-asset and fixed-income solutions [4] - In terms of long-term performance, 46% of T. Rowe Price's U.S. mutual funds' AUM outperformed the Morningstar median, while 43% exceeded the passive peer median over the five years ending December 31, 2025. Additionally, investment advisory clients outside the United States accounted for 8.8% of total AUM, highlighting geographic diversification [5] Competitive Position - T. Rowe Price benefits from a well-diversified AUM mix across various asset classes, client segments, and geographies, which provides stability to its asset base. The company is well-positioned to sustain AUM growth in the future, supported by a strong brand and consistent investment track record [6] - Peers such as Franklin Resources, Inc. (BEN) and Invesco Ltd. (IVZ) have also shown steady AUM growth, with Franklin reporting a preliminary AUM of $1.71 trillion as of January 31, 2026, up 1.3% sequentially, and Invesco achieving a five-year CAGR of 10% [7][8][9]

Core Insights - T. Rowe Price Group, Inc. (NASDAQ:TROW) is recognized among the Dividend Champions, Contenders, and Challengers List, highlighting its strong dividend yield [1] - Evercore ISI has reduced its price target for T. Rowe Price from $116 to $106, citing equity outflows as a significant concern despite the quarter meeting expectations [2] - The company reported $1.78 trillion in assets under management at the end of Q4 2025, reflecting over 10% growth year-to-date, despite experiencing $56.9 billion in net outflows [3] Group 1: Financial Performance - T. Rowe Price's CEO Robert Sharps indicated that the firm is gaining traction in its strategic priorities and remains confident in its long-term plans [3] - The company has shown strong long-term results in fixed income and its Target Date franchise, with improving performance across key investment strategies [4] Group 2: Strategic Initiatives - T. Rowe Price has formed a collaboration with Goldman Sachs to explore wealth and retirement opportunities, launching co-branded model portfolios [4] - In January, T. Rowe Price announced a strategic partnership with First Abu Dhabi Bank, further expanding its market reach [4] Group 3: Product Development - The company launched 13 ETFs in 2025, increasing its total ETF lineup to 30 and surpassing $21 billion in ETF assets [5] - T. Rowe Price achieved a first close on a firm-managed private equity fund in early 2026, while OHA recorded over $16 billion in fundraising for the second consecutive year [5]

Core Insights - T. Rowe Price's annual 401(k) benchmarking report highlights that participants utilizing financial advice, education, or tools have an average account balance that is twice as high as non-users and save at a rate 29% higher than those who do not engage with these resources [1][1][1] Group 1: Participant Behavior - Only 13.8% of participants currently utilize financial advice, education, or tools available through their workplace retirement site [1] - Participants in their 50s and 60s tend to increase their savings rates by an average of 1.4 percentage points annually, surpassing typical automatic increase defaults [1][1] - Less than 2% of participants with below-average retirement savings make catch-up contributions, while 15% of those with above-average savings do [1] Group 2: Plan Design and Features - Plans with automatic enrollment see 99% of participants either maintain or increase their default savings rate, indicating the long-term benefits of effective plan design [1] - Plans that offer emergency expense withdrawals have a participation rate of 76%, compared to 67% in plans without such features [1] - Seventy-eight percent of plans have adopted at least one optional SECURE 2.0 provision, with higher catch-up limits and self-certified hardships being among the most popular [1] Group 3: Roth Contributions - Plans that include a Roth employer contribution experience 30% higher Roth participation rates, 29% higher Roth balances, and 6% higher Roth savings rates compared to those without a Roth match [1] - Younger participants are particularly inclined to utilize Roth options [1] Group 4: Company Overview - T. Rowe Price manages $1.80 trillion in client assets as of January 31, 2026, with approximately two-thirds of these assets being retirement-related [1] - The firm has over 85 years of experience in investment excellence and retirement leadership, focusing on client interests and integrity [1]

Core Insights - T. Rowe Price has two leading ETFs in early 2026, with the T. Rowe Price Natural Resources ETF (TURF) showing a year-to-date return of 16.1% and the T. Rowe Price QM U.S. Bond ETF (TAGG) attracting $233.08 million in net inflows [1] Group 1: Performance Highlights - TURF leads T. Rowe Price ETFs in performance with a return of 16.1% year-to-date as of February 10 [1] - TAGG has attracted $233.08 million in net inflows, making it the top fund in terms of flows for the firm [1] Group 2: Investment Strategies - TURF focuses on upstream natural resource companies involved in exploring, extracting, and developing commodities across various sectors, aiming to capitalize on commodity cycles [1] - TAGG employs a "core plus" approach to outperform the Bloomberg U.S. Aggregate Bond Index, utilizing quantitative models and fundamental credit research [1] Group 3: Fund Characteristics - TURF, launched in June 2025, has an expense ratio of 0.44% and a fund size of $19.2 million [1] - TAGG, initiated in September 2021, has a fund size of $1.77 billion and a competitive expense ratio of 0.08% [1]

分组1 - T. Rowe Price Group, Inc. (TROW) announced a quarterly dividend of $1.30 per share, marking a 2.4% increase from the previous payout, to be paid on March 30, 2026 [1][8] - The company has increased its dividend for 40 consecutive years since its IPO, with a five-year annualized dividend growth rate of 3.49% and a payout ratio of 52% [2][3] - TROW's forward dividend yield stands at 5.43%, significantly higher than the industry average of 1.69% [3] 分组2 - T. Rowe Price has an active share repurchase program, returning approximately $625 million through buybacks in 2025, with total share repurchase authorization reaching 39.1 million shares [4][8] - As of December 31, 2025, TROW had total liabilities of $2.3 billion, supported by $3.38 billion in cash and cash equivalents, indicating strong liquidity [5][8] - Over the past six months, T. Rowe Price shares fell 9%, compared to an 11.5% decline in the industry [5]

Core Insights - Truist Financial Corp reduced its stake in T. Rowe Price Group by 31.9%, holding 20,121 shares valued at $2,065,000 after selling 9,417 shares in Q3 [2] - Several large investors have made significant changes to their positions in T. Rowe Price Group, with First Trust Advisors LP increasing its stake by 137.7% in Q2, now owning 3,441,458 shares valued at $332,101,000 [3] - T. Rowe Price Group's stock opened at $94.58, with a market cap of $20.64 billion and a P/E ratio of 10.22, indicating a relatively low valuation compared to its earnings potential [5] Institutional Holdings - Institutional investors own 73.39% of T. Rowe Price Group's stock, indicating strong institutional interest [3] - Notable changes in institutional holdings include ARGA Investment Management LP increasing its stake by 3,807.3% in Q2, now holding 477,161 shares valued at $46,046,000 [3] Insider Trading - VP Arif Husain sold 4,260 shares at an average price of $101.96, resulting in a total transaction of $434,349.60, which represents an 8.29% decrease in his ownership [4] Earnings Performance - T. Rowe Price Group reported Q4 earnings of $2.44 per share, missing estimates by $0.03, with revenue of $1.93 billion, a 6.0% year-over-year increase [7] - The company had a net margin of 28.53% and a return on equity of 20.36%, indicating strong profitability metrics [7] Analyst Sentiment - Argus upgraded T. Rowe Price Group to a "hold," while Goldman Sachs cut its price target to $90, maintaining a "sell" rating, reflecting mixed analyst sentiment [6][8] - Multiple analysts have lowered their target prices, contributing to a consensus target price of $103.50, with twelve analysts rating the stock as "hold" and four as "sell" [8]