• Affiliated Managers Group (AMG) offers exposure to a diverse set of boutique investment managers.
• Shares set a new all-time in intraday trading on Sept. 17.
• AMG stock is up 35% over the past year.  
• AMG currently holds a 100% “Buy” opinion from Barchart and has a Trend Seeker “Buy” signal.

Today’s Featured Stock

Valued at $6.67 billion, Affiliated Managers Group (AMG) is a global asset management company with equity investments in leading boutique investment management firms. 

AMG’s affiliates offer many investment products across a broad array of active, alpha-oriented strategies, to both institutional and retail clients around the world. AMG offers investors a unique opportunity to participate in the growth of a diverse group of high-quality boutique investment management firms. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AMG checks those boxes. Since the Trend Seeker signaled a buy on May 7, the stock gained 36.01%.

AMG Price vs. Daily Moving Averages:

Barchart Technical Indicators for Affiliated Mangers

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Affiliated Managers hit a new all-time high of $240.79 in intraday trading on Sept. 17.

• Affiliated Managers Group has a Weighted Alpha of +44.15.
• AMG has an 100% “Buy” opinion from Barchart.
• The stock gained 35.51% over the past year.
• AMG has its Trend Seeker “Buy” signal intact.
• Affiliated Managers is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 13 new highs and gained 8.97% in the last month.
• Relative Strength Index (RSI) is at 72.21%.
• There’s a technical support level around $233.37.

Don’t Forget the Fundamentals

• $6.67 billion market capitalization.
• 10.71x trailing price-earnings ratio.
• 0.02% dividend yield.
• Revenue is expected to grow 2.08% this year and another 8.58% next year.
• Earnings are projected to increase by 13.36% this year and an additional 16.42% next year.

Analyst and Investor Sentiment on Affiliated Managers

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are high on Affiliated Managers.

• The Wall Street analysts tracked by Barchart have issued 7 “Strong Buys” and 1 “Strong Sell” opinion on the stock.
• Their price targets are between $210-$331.
• Value Line gives the stock its “Above Average” rating with a price target of $260.
• CFRA’s MarketScope Advisor rates it a “Buy.”
• Morningstar thinks the stock is fairly valued.
• 397 investors following the stock on Motley Fool think the stock will beat the market while 71 think it won’t.
• 5,300 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold” and comments: “AMG’s unique value proposition lies in its partnership approach with affiliate investment firms, allowing it to leverage the expertise and specialized strategies of its partners.”

The Bottom Line on Affiliated Managers

AMG seems to have it all – growth in both revenue and earnings and a wide following by individual and institutional investors.

I caution that AMG is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.