What Happened?

Shares of asset management company Affiliated Managers Group (NYSE: AMG) jumped 5% in the afternoon session after the company hit an all-time high on the back of positive analyst commentary and strong financial performance. 

Analysts reacted favorably to the company's trajectory. For instance, TD Cowen raised its price target for Affiliated Managers Group to $485, while Jefferies also adjusted its price target upward to $282. This confidence was rooted in the company's solid growth, as its assets under management (AUM) reached $803.6 billion, a 10.3% year-over-year increase. Furthermore, economic earnings per share climbed 15.4%, beating estimates. Adding to the positive signals, the company's management had been aggressively buying back shares. The stock's climb also occurred during a day of broad market strength, with major indexes tracking higher.

After the initial pop the shares cooled down to $302.65, up 4.8% from previous close.

Is now the time to buy Affiliated Managers Group? Access our full analysis report here.

What Is The Market Telling Us

Affiliated Managers Group’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock gained 6.2% on the news that the company reported third-quarter results that showed a significant increase in profitability, despite a slight miss on revenue. 

The firm's adjusted earnings per share grew by 26.6% to $6.10 compared to the same period in the previous year, surpassing analyst expectations. This profit growth was supported by a strong increase in assets under management (AUM), which grew 10.3% year-over-year to $803.6 billion, also beating Wall Street's forecast. While total revenue of $528 million fell slightly short of estimates, investors appeared to focus on the robust profitability and the growth in client assets as key positive signs for the business.

Affiliated Managers Group is up 4.8% since the beginning of the year, and at $302.65 per share, has set a new 52-week high. Investors who bought $1,000 worth of Affiliated Managers Group’s shares 5 years ago would now be looking at an investment worth $2,999.

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