Rowe Price Group, Inc. (TROW): A Bull Case Theory

We came across a bullish thesis  on T. Rowe Price Group, Inc. on Dividend Fortress’s Substack by Shailesh Kumar, MBA. In this article, we will summarize the bulls’ thesis on TROW. T. Rowe Price Group, Inc.'s share was trading at $104.86 as of September 17th. TROW’s trailing and forward P/E were 11.74 and 10.93 respectively according to Yahoo Finance.

Rowe Price (TROW) gained over 5% as of today following the announcement of a strategic partnership with Goldman Sachs, aimed at offering co-branded funds and retirement strategies in collaboration with Oak Hill. This alliance leverages T. Rowe Price’s significant retirement asset management platform to provide clients access to private market assets, while Goldman Sachs gains exposure to these retirement plans to distribute its alternative investment products. The partnership positions both firms to capitalize on the gradual opening of retirement plans to alternative assets, a growing opportunity in the asset management space.

To support the deal, Goldman Sachs will acquire up to 3.5% of T. Rowe Price’s stock in the open market, potentially representing a $1 billion investment depending on pricing. Post-transaction, insiders and institutional investors are expected to control over 87% of the company’s float, leaving limited shares available to retail investors, which could create a structural floor under the stock. This development comes as U.S. asset managers increasingly focus on scale, with BlackRock and Vanguard dominating equity ownership, and the integration of alternative assets—potentially including stablecoins—offering a path for firms like T. Rowe Price to enhance competitiveness.

For existing investors, the deal represents a meaningful growth catalyst while the stock already provides a compelling 4.8% dividend yield. By combining expanded product offerings with a concentrated shareholder base and potential structural support from Goldman’s stake, T. Rowe Price is positioned for upside while mitigating downside risk, making the current market price an attractive entry point for income-focused and strategic growth investors alike.

Previously we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s global asset management leadership, diversified revenue streams, and technological edge via Aladdin®. The company's stock price has appreciated approximately by 14.78% since our coverage. The thesis still stands, while Shailesh Kumar shares a similar view but emphasizes T. Rowe Price’s Goldman Sachs partnership and alternative assets growth.

Rowe Price Group, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held TROW at the end of the second quarter which was 36 in the previous quarter. While we acknowledge the potential of TROW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.