Stock of the Day

August 3, 2022

Ameriprise Financial (AMP)

$507.75
+$0.23 (+0.0%)
Market Cap: $48.35B

About Ameriprise Financial

Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

Ameriprise Financial Bull Case

Here are some ways that investors could benefit from investing in Ameriprise Financial, Inc.:

  • The current stock price is around $505, which is near its 52-week high of $582.05, indicating strong market performance.
  • Ameriprise Financial, Inc. has recently increased its quarterly dividend to $1.60, reflecting a commitment to returning value to shareholders.
  • The company reported earnings per share (EPS) of $9.50, exceeding analyst expectations, which demonstrates strong financial health and profitability.
  • With a market capitalization of approximately $48.16 billion, Ameriprise Financial, Inc. is a significant player in the financial services sector, providing stability.
  • The firm has authorized a substantial share buyback plan of $4.50 billion, suggesting that the board believes the stock is undervalued and is taking steps to enhance shareholder value.

Ameriprise Financial Bear Case

Investors should be bearish about investing in Ameriprise Financial, Inc. for these reasons:

  • Despite strong earnings, the company’s revenue for the latest quarter was below analyst estimates, which may raise concerns about future growth potential.
  • The stock has a relatively high debt-to-equity ratio of 1.01, indicating that the company is using a significant amount of debt to finance its operations, which can be risky.
  • Analysts have mixed ratings on the stock, with one sell rating and five hold ratings, suggesting uncertainty in the stock's future performance.
  • The current ratio and quick ratio are both at 0.59, which indicates potential liquidity issues, as the company may struggle to cover short-term liabilities.
  • Market volatility, as indicated by a beta of 1.28, suggests that the stock may experience larger price fluctuations compared to the overall market, which could be a concern for risk-averse investors.
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