Waddell & Reed (NYSE:WDR) Receives a Downgrade
In an analyst research report issued today, Citigroup downgraded shares of Waddell & Reed (NYSE:WDR) to a “Sell” rating from the previous “Neutral” rating.
From a total of 11 analysts covering Waddell & Reed Financial Inc. (NYSE:WDR) stock, 2 rate it a ”Buy”, 1 a “Sell”, and 10 a ”Hold”. This means that 15% of the ratings are positive. The highest target price is $49 while the lowest target price is $33. The mean of all analyst targets is $38.27 with a 30.46% above today’s ($29.02) stock price. Waddell & Reed Financial Inc. was the topic of 13 analyst reports since August 27, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on October 28 with “Outperform” rating. Citigroup maintained shares with “Sell” rating and $29 target share price in a report from an October 5. William Blair downgraded WDR stock in a recent report from October 19 to “Market Perform” rating. Finally, Wood maintained the stock with “Market Perform” rating in a report issued on a September 3.
The stock increased 0.17% or $0.05 during the last trading session, striking $29.02. Approximately 2.72 million shares of stock traded hands or 250.70% up from the average. Waddell & Reed Financial, Inc. (NYSE:WDR) has declined 38.01% since May 12, 2015 and is downtrending. It has underperformed by 34.33% the S&P500.
The overall sentiment of institutions has decreased to 1.22 in Q2 2015. Its down 0.10, from 1.32 in 2015Q2. The ratio is negative, as 44 institutions have sold all the shares of Waddell & Reed Financial, Inc. that they owned while 80 funds have taken shares off the table. 39 funds have purchased shares for the first time while 112 added to their positions. These institutions now hold 65.51 million shares or 9.64% less than the 72.50 million shares they owned in 2015Q2.
The Fund Hamlin Capital Management Llc currently is holding shares equating to 2.87% of its total portfolio in Waddell & Reed Financial, Inc. representing a total of 1.49 million shares. Another fund,Herndon Capital Management Llc, is holding a total of 2.94 million shares equating to 1.99% of their holdings. Additionally, Wharton Business Group Llc has a 418,071 share stake in Waddell & Reed Financial, Inc. which represents 1.44% of their total portfolio. The Fund, Monarch Partners Asset Management Llc, based out of Massachusetts, has also built up a stake in the stock, which represents a total of 1.34% of their total portfolio. Finally Valley National Advisers Inc, a fund which is based in the state of Pennsylvania reported a total holdings of 59,375 shares.
Insider activity is a very important aspect to track on any stock. Going back to May 26, 2015, shareholders of Waddell & Reed Financial, Inc. have witnessed 0 insider purchases, and a total of 1 insider sale equating to a net activity of approximately $134,880 . Raines James M sold 3,000 shares worth approximately $134,880. Logue Dennis E sold 2,700 shares worth approximately $130,410.
Waddell & Reed Financial, Inc. is a mutual fund and asset management company. The company has a market cap of $2.40 billion. The Firm provides investment management, investment advisory, investment product underwriting and distribution and shareholder services administration to Waddell & Reed Advisors group of mutual funds, Ivy Funds, Ivy Funds Variable Insurance Portfolios, InvestEd Portfolios, 529 college savings and Selector Management Fund SICAV and its Ivy Global Investors sub-funds and institutional and separately managed accounts. It has 9.22 P/E ratio. The Firm operates its business through a distribution network.
According to Zacks Investment Research, “Waddell & Reed, is the exclusive underwriter and distributor of 41 mutual fund portfolios, including 18 comprising Waddell & Reed Advisors Funds (formerly the United Group of Mutual Funds) and 12 comprising W&R Funds (formerly Waddell & Reed Funds, Inc.). The remaining 11 portfolios comprise the W&R Target Funds, which serve as the underlying investment portfolios for variable annuities and variable life insurance products underwritten by United Investors Life Insurance Company and distributed by Waddell & Reed.”