Trade-Ideas LLC identified Affiliated Managers Group ( AMG) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Affiliated Managers Group as such a stock due to the following factors:

  • AMG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $85.5 million.
  • AMG has traded 96,962 shares today.
  • AMG is up 3.1% today.
  • AMG was down 5.7% yesterday.

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More details on AMG:

Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. AMG has a PE ratio of 17. Currently there are 6 analysts that rate Affiliated Managers Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Affiliated Managers Group has been 412,400 shares per day over the past 30 days. Affiliated Managers Group has a market cap of $9.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.26 and a short float of 1% with 0.94 days to cover. Shares are down 28% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Affiliated Managers Group as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • AFFILIATED MANAGERS GRP INC has improved earnings per share by 8.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AFFILIATED MANAGERS GRP INC increased its bottom line by earning $7.99 versus $6.49 in the prior year. This year, the market expects an improvement in earnings ($12.55 versus $7.99).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 5.6% when compared to the same quarter one year prior, going from $103.20 million to $109.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, AFFILIATED MANAGERS GRP INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for AFFILIATED MANAGERS GRP INC is rather high; currently it is at 58.33%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.77% is above that of the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.7%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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