AllianceBernstein (NYSE:AB) Shares Gap Up After Better-Than-Expected Earnings

AllianceBernstein Holding L.P. (NYSE:ABGet Free Report) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $32.95, but opened at $34.09. AllianceBernstein shares last traded at $34.20, with a volume of 128,261 shares.

The asset manager reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.14. The company had revenue of $1.09 billion for the quarter, compared to analyst estimates of $857.85 million. AllianceBernstein had a return on equity of 14.98% and a net margin of 6.36%. The business’s quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.70 earnings per share.

AllianceBernstein Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 14th. Stockholders of record on Tuesday, February 20th will be issued a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 9.36%. This is a boost from AllianceBernstein’s previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Friday, February 16th. AllianceBernstein’s payout ratio is presently 111.59%.

Wall Street Analyst Weigh In

A number of research firms have commented on AB. StockNews.com upgraded shares of AllianceBernstein from a “sell” rating to a “hold” rating in a research note on Thursday, November 2nd. TD Cowen assumed coverage on AllianceBernstein in a research report on Thursday, January 4th. They issued an “outperform” rating and a $36.00 price target on the stock. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $40.25.

Read Our Latest Research Report on AB

Institutional Trading of AllianceBernstein

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cowa LLC purchased a new stake in shares of AllianceBernstein during the 1st quarter worth $27,000. Crestwood Advisors Group LLC purchased a new position in AllianceBernstein in the third quarter valued at about $85,508,000. Bank of America Corp DE increased its holdings in AllianceBernstein by 130.8% in the first quarter. Bank of America Corp DE now owns 926,832 shares of the asset manager’s stock valued at $33,885,000 after buying an additional 525,176 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in AllianceBernstein by 98.0% in the first quarter. The Manufacturers Life Insurance Company now owns 501,095 shares of the asset manager’s stock valued at $23,561,000 after buying an additional 248,055 shares in the last quarter. Finally, Morgan Stanley increased its holdings in AllianceBernstein by 26.3% in the fourth quarter. Morgan Stanley now owns 1,183,665 shares of the asset manager’s stock valued at $40,683,000 after buying an additional 246,609 shares in the last quarter. Hedge funds and other institutional investors own 14.27% of the company’s stock.

AllianceBernstein Stock Down 0.7 %

The company has a market capitalization of $3.68 billion, a PE ratio of 14.12, a PEG ratio of 0.80 and a beta of 1.26. The stock’s fifty day simple moving average is $31.90 and its 200-day simple moving average is $30.79.

About AllianceBernstein

(Get Free Report)

AllianceBernstein Holding L.P. is a publicly owned investment manager. The firm is a related adviser The firm manages separate client focused portfolios for its clients. The firm primarily invests in common and preferred stocks, warrants and convertible securities, government and corporate fxed-income securities, commodities, currencies, real estate-related assets and infation-protected securities.

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