Why Are Affiliated Managers Group (AMG) Shares Soaring Today

What Happened?

Shares of asset management company Affiliated Managers Group (NYSE:AMG) jumped 6.2% in the afternoon session after 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.

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What Is The Market Telling Us

Affiliated Managers Group’s shares are not very volatile and have only had 3 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 3.1% on the news that the head of the Federal Reserve hinted at potential interest rate cuts. The broader market surged, with the Dow Jones Industrial Average soaring over 900 points, after the head of the Federal Reserve hinted that interest rate cuts could be on the way. This positive sentiment lifted stocks across the board. For Affiliated Managers Group, the rally pushed its stock to a new 52-week high of $224.98. The move reflects strong investor confidence and builds on the stock's robust performance, which has seen an 18.1% gain year-to-date and a 29.41% increase over the past year.

Affiliated Managers Group is up 34.4% since the beginning of the year, and at $251.24 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 $3,192.

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