AllianceBernstein Analysts Set Target Price at $41.50 Amid Hold Ratings

Shares of AllianceBernstein Holding L.P. (NYSE: AB) have received a consensus recommendation of “Hold” from nine analysts covering the stock, according to Marketbeat Ratings. Among these analysts, one has issued a sell rating, six recommend holding, one suggests buying, and one has given a strong buy recommendation. The average target price for the stock over the next twelve months stands at $41.50.

Analysts have been active in their assessments of AllianceBernstein. On October 24, 2023, Sanford C. Bernstein set a target price of $43.00. That same week, Barclays lowered its target from $42.00 to $40.00, maintaining an “equal weight” rating. Conversely, TD Cowen increased its price objective from $36.50 to $40.00 while also assigning a “hold” rating. Furthermore, Zacks Research upgraded AllianceBernstein from a “hold” to a “strong buy” in a report dated October 27, 2023.

Recent Earnings and Dividend Announcement

AllianceBernstein reported its quarterly earnings on October 23, 2023, revealing earnings per share (EPS) of $0.86, which surpassed analysts’ expectations of $0.85. The firm recorded a return on equity of 20.56% and a net margin of 7.09%. Revenue for the quarter was $884.67 million, falling short of the anticipated $900.69 million. This reflects a modest increase of 1.3% compared to the same quarter last year, during which the firm had reported an EPS of $0.77.

In addition to its earnings report, AllianceBernstein announced a quarterly dividend of $0.86, which was paid on November 20, 2023, to shareholders on record as of November 3, 2023. This marked an increase from the previous dividend of $0.76, resulting in an annualized dividend of $3.44 and a yield of 8.7%. The firm’s payout ratio is currently at 113.16%.

Institutional Investment Trends

Several large investors have recently altered their stakes in AllianceBernstein. NewEdge Advisors LLC expanded its holdings by 221.0% during the third quarter, acquiring an additional 7,287 shares and bringing its total to 10,585 shares, valued at $405,000. Virtus Advisers LLC also entered the picture, purchasing a new position worth $915,000.

Other notable changes include Northwestern Mutual Wealth Management Co., which increased its stake by 16.1%, now owning 20,495 shares valued at $783,000 after acquiring an additional 2,841 shares. Meanwhile, Mariner LLC raised its stake by 8.4%, now holding 42,405 shares worth $1,621,000. Lastly, Mercer Global Advisors Inc. ADV increased its holdings by 7.4%, acquiring an additional 576 shares to reach 8,397 shares valued at $321,000.

As of now, institutional investors and hedge funds collectively own 19.25% of AllianceBernstein’s stock.

AllianceBernstein Holding L.P. continues to be a significant player in the investment management sector, managing portfolios that encompass a diverse range of assets, including equities, fixed-income securities, and real estate-related assets. The company is recognized for its commitment to providing tailored investment solutions to its clients.