Ameriprise Financial Inc

Ameriprise Financial announced an additional $5.5B stock repurchase authorization, sending its shares higher in post-market trading. The new authorization runs alongside the company's 2025 buyback program, under which roughly $1.1B of shares remained available for repurchase through June 30, 2027; the additional $5.5B authorization extends the repurchase window through September 30, 2028. Ameriprise said it intends to fund the new buybacks through existing working capital, future cash flow generation, and other customary financing methods. Shares may be acquired in the open market, through privately negotiated transactions, block trades, or other means. The stock was 1.45% higher at $504.53 during post-market trading on Tuesday.

Ameriprise Financial has completed a sizeable share repurchase program, retiring 7,077,426 shares, or 7.66% of its stock, for a total of US$3.44 billion. The buyback comes after a strong run, with the share price up 8.01% over 30 days and 21.08% over 90 days, while the 5-year total shareholder return is 134.18%. The company has a $4.5 billion buyback plan, which could lead to EPS growth by reducing the share count. Ameriprise Financial's most followed narrative pegs fair value at $574.36 using a 7.95% discount rate, while the last close sits at $569.54, suggesting the stock is modestly undervalued. However, the company still faces meaningful risks, including potential revenue pressure from higher asset management outflows and margin strain if adviser recruitment costs keep rising.

Ameriprise Financial Inc announced a total dividend of $1.7 per share, with the ex-dividend date set for August 3, 2026, and payment on August 21, 2026. The company has increased its dividend each year since 2005, earning status as a dividend achiever for at least 21 consecutive years of growth. Its trailing 12-month dividend yield stands at 1.19%, while the forward yield is 1.26%, and the annual dividend growth rate has been approximately 9% over the past three, five, and ten years. The dividend payout ratio is a conservative 0.16, supported by a profitability rank of 7 out of 10 and a growth rank of 7 out of 10 from GuruFocus. Ameriprise Financial operates as a diversified financial services provider with roughly $1.69 trillion in total assets under management and advisory across its wealth management, asset management, and retirement and protection segments.

Ameriprise Financial's second-quarter earnings call featured analyst questions on a $19 billion client asset outflow from Comerica, expected to complete by the end of the third quarter, with Huntington Bank's onboarding anticipated to offset the loss. CEO Jim Cracchiolo and CFO Walter Berman addressed the timeline and magnitude of the exit, while also confirming that current capital return levels, including stock buybacks, are sustainable given ongoing free cash flow generation. Management reiterated that wealth and asset management margins are sustainable and that AI adoption is expected to drive further adviser productivity gains. The firm reported revenue of $4.90 billion, beating analyst estimates of $4.81 billion, and adjusted EPS of $11.07 versus estimates of $10.81. Analysts also questioned softness in total client flows relative to robust wrap flows, which management attributed to the Comerica exit and seasonal tax impacts, while noting increased activity in Columbia Threadneedle's SMAs and ETFs.

Ameriprise Financial reported second-quarter 2026 revenue of US$5,013 million and net income of US$1,113 million, with higher basic and diluted earnings per share from continuing operations compared to the prior year. The company also declared a quarterly dividend of US$1.70 per share, continuing its pattern of returning cash to shareholders despite a modest decline in reported sales. The dividend follows an increase in April 2026 and, together with ongoing buybacks, reinforces the firm's use of capital returns as a potential earnings per share driver. The company's narrative projects US$22.7 billion in revenue and US$4.8 billion in earnings by 2029, requiring 4.6% yearly revenue growth and about a US$0.9 billion earnings increase from US$3.9 billion today. Before this report, the most optimistic analysts were modeling revenue around US$21.5 billion and earnings of about US$4.6 billion by 2029, while also noting regulatory and interest-rate-sensitive risks.

StockStory identifies Hamilton Lane and Ameriprise Financial as two financials stocks for long-term investors while recommending selling Credit Acceptance. Hamilton Lane, an investment management firm specializing in private markets, posted annual revenue growth of 17.3% over the last five years and earnings per share growth of 22.6% annually over the last two years. Ameriprise Financial, a provider of financial planning and wealth management, achieved annual earnings per share growth of 20.8% over five years and a return on equity of 65.2%. Credit Acceptance, an auto financing company for consumers with limited credit histories, saw flat earnings per share over the last two years despite revenue growth, and its 2.7% annual revenue growth over five years lagged the typical financials company.

Ameriprise Financial reported second-quarter 2026 adjusted operating earnings of $11.07 per share, surpassing the Zacks Consensus Estimate of $10.72 and rising 22% from the prior-year quarter. Adjusted operating total net revenues were $4.90 billion, up 13% year over year and above the consensus estimate of $4.79 billion. Total assets under management and assets under administration reached a record $1.81 trillion as of June 30, 2026, a 14% increase from a year ago. The company repurchased 1.7 million shares for $774 million during the quarter. Adjusted operating expenses rose 12% to $3.57 billion, partially offsetting the revenue gains.

Custody bank stocks delivered a strong first quarter, with the 16 companies tracked reporting aggregate revenues that beat analysts' consensus estimates by 2.5%. Voya Financial stood out with revenues of $1.93 billion, up 2.3% year on year and exceeding expectations by 15.4%, the largest beat in the group. Franklin Resources reported revenues of $2.29 billion, an 8.7% increase that topped estimates by 11.8%, while Hamilton Lane posted the slowest revenue growth with a 2.2% decline to $193.6 million, missing forecasts by 3.4%. T. Rowe Price saw revenues rise 4.8% to $1.86 billion but missed estimates by 1%, and Ameriprise Financial grew revenues 10.8% to $4.77 billion, beating by 2.1%. Share prices across the group have been resilient, rising 8.7% on average since the latest earnings results.

StockStory identified three cash-heavy companies with strong balance sheets and growth prospects. Remitly holds a net cash position of $609.8 million, representing 15.4% of its market cap, and has seen active customers grow 28.4% annually over two years. Vertex Pharmaceuticals has a net cash position of $5.26 billion, or 4.7% of its market cap, with 13.8% annual sales growth over five years. Ameriprise Financial's net cash position stands at $4.86 billion, 12% of its market cap, supported by share buybacks and 18.7% annual tangible book value per share growth.

Ameriprise Financial is expected to report second-quarter 2026 earnings on Thursday, July 23, before the market opens. Analysts forecast diluted earnings per share of $10.63, a 16.7% increase from $9.11 in the same quarter last year. The company has beaten Wall Street EPS estimates in each of the last four quarters. For fiscal 2026, EPS is projected at $43.01, up 9.3% from $39.34 in fiscal 2025, with further growth to $46.33 expected in fiscal 2027. Ameriprise Financial stock has fallen 14.1% over the past 52 weeks, underperforming the S&P 500 Index's 20.9% gain and the State Street Financial Select Sector SPDR ETF's 1.8% rise. Analysts hold a Moderate Buy rating on the stock with an average price target of $533.92, implying a 15.3% upside.