T. Rowe Price Group, Inc.’s TROW board of directors approved an increase in the company’s share repurchase authorization by 12 million. This reflects the company’s capital strength.
The latest approval enhances the total repurchase authorization to 20.9 million shares.
During the first nine months of 2015, the company repurchased 11.2 million shares for $852 million out of which 6.4 million for $467 million were repurchased in the third quarter itself.
As of Sep 30, 2015, T. Rowe Price remains debt-free with substantial liquidity, including cash and sponsored portfolio investment holdings of about $3 billion, which support the company’s ability to continue investing in the future periods. This not only enables the company to undertake shareholder-friendly moves, but also helps it enhance shareholder value.
Further, the company has adopted the proxy access by-law amendment. Such moves allow stockholders to nominate individuals to the board who meets the required criteria in the amended by-laws.
Along with rewarding shareholders, T. Rowe Price’s board of directors announced and approved the appointment of William J. Stromberg as president, Chief Executive and Chairman of the Management Committee, effective Jan 1, 2016 and a board of director too. Stromberg will succeed James A.C. Kennedy who will resign from the CEO and president post, effective Dec 31, 2015. Notably, Kennedy will leave T. Rowe Price at the end of March 2016.
We believe that despite active competition, the company has significant long-term upside potential based on its disciplined risk-aware investment approach, which focuses on diversification, consistency in style and fundamental research.
T. Rowe Price currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the finance space include Federated Investors, Inc. FII, AllianceBernstein Holding L.P. AB and Woori Bank Co., Ltd. WF. All three carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment