Is T. Rowe Price Group Stock Underperforming the Nasdaq?

Core Viewpoint - T. Rowe Price Group, Inc. has shown mixed performance in the asset management sector, with recent financial results indicating growth in revenues and earnings, but significant client outflows and underperformance compared to peers [5][6]. Company Overview - T. Rowe Price Group, Inc. is based in Baltimore, Maryland, and operates as an asset manager, managing equity and fixed income mutual funds with a market cap of $23.3 billion [1][2]. Financial Performance - The company reported Q3 results on Oct. 31, showing a 6% year-over-year increase in net revenues to $1.9 billion, surpassing expectations by 2.3% [5]. - Adjusted EPS grew 9.3% year-over-year to $2.81, exceeding consensus estimates by 10.2% [5]. - Despite these positive results, T. Rowe Price experienced $7.9 billion in net client outflows during the quarter [5]. Stock Performance - T. Rowe's stock reached a 52-week high of $125.04 on Dec. 9, 2024, but is currently trading 16.4% below that peak [3]. - Over the past three months, T. Rowe's stock prices have declined by 3.4%, while the Nasdaq Composite gained 8% [3]. - Year-to-date, T. Rowe's stock has decreased by 7.6%, and over the past 52 weeks, it has declined by 15.6%, contrasting with the Nasdaq's gains of 21.9% in 2025 and 18.6% over the past year [4]. Competitive Position - T. Rowe has underperformed compared to its peer, State Street Corporation, which saw a 26.4% surge in 2025 and 26.1% returns over the past year [6]. - Among 14 analysts covering T. Rowe stock, the consensus rating is a "Hold," with the stock trading slightly below the mean price target of $107.69 [6].