AllianceBernstein Analysts Set Target Price at $41.50 Amid Earnings Report

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. Analysts have varied opinions on the stock, with one rating it as a sell, six as a hold, one as a buy, and one as a strong buy. The average target price for the next 12 months stands at $41.50.

Several research reports have recently evaluated AllianceBernstein’s stock. On October 24, Sanford C. Bernstein set a target price of $43.00, while Barclays reduced its price target from $42.00 to $40.00, maintaining an “equal weight” rating. Additionally, TD Cowen raised its target from $36.50 to $40.00 and upheld a “hold” rating on the stock. Zacks Research increased its rating from “hold” to “strong buy” on October 27, while Cowen reaffirmed its “hold” stance on the same date.

Earnings Performance and Dividend Increase

On October 23, 2023, AllianceBernstein reported quarterly earnings of $0.86 per share, surpassing analyst expectations of $0.85 by a narrow margin. The asset manager achieved a return on equity of 20.56% and a net margin of 7.09%. Revenue for the quarter totaled $884.67 million, slightly below analysts’ expectations of $900.69 million. This marks a 1.3% increase in revenue compared to the same quarter last year, which saw earnings of $0.77 per share.

In addition to the earnings report, AllianceBernstein recently announced an increase in its quarterly dividend. Shareholders received a dividend of $0.86 on November 20, 2023, up from the previous $0.76. The ex-dividend date was set for November 3, 2023. This results in an annualized dividend of $3.44 and a dividend yield of 8.7%. The firm’s payout ratio stands at 113.16%.

Institutional Investor Activity

Recent activities by large investors indicate growing interest in AllianceBernstein. NewEdge Advisors LLC increased its holdings by 221.0% during the third quarter, acquiring an additional 7,287 shares, bringing its total to 10,585 shares valued at approximately $405,000. Virtus Advisers LLC made a new investment in the third quarter worth $915,000. Similarly, Northwestern Mutual Wealth Management Co. boosted its position by 16.1%, now holding 20,495 shares valued at $783,000.

Other notable increases include Mariner LLC, which grew its stake by 8.4% to 42,405 shares worth $1.62 million, and Mercer Global Advisors Inc. ADV, which increased its holdings by 7.4%. Presently, institutional investors and hedge funds own approximately 19.25% of AllianceBernstein’s stock.

AllianceBernstein Holding L.P. operates as a publicly owned investment manager, managing distinct client-focused portfolios. The firm invests across various asset classes, including common and preferred stocks, government and corporate fixed-income securities, and real estate-related assets. As analysts continue to monitor the firm’s performance and market conditions, the outlook for AllianceBernstein remains a topic of interest.