Should I buy T. Rowe Price stock in 2025?

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At HelloSafe, our expert has been monitoring T. Rowe Price’s performance for more than three years. Every month, hundreds of thousands of users in the United States rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by T. Rowe Price.

What is T. Rowe Price?

How much is T. Rowe Price stock?

The price of T. Rowe Price stock is falling this week. As of now, shares are trading at $88.12, down 0.49% (-$0.43) in the past 24 hours and showing a 1.56% decrease over the last week. TROW’s market capitalization stands at $19.58 billion, with a three-month average daily volume of 2.2 million shares. The stock boasts a price-to-earnings ratio of 9.63, an attractive dividend yield of 5.76%, and a beta of 1.53, indicating higher volatility than the wider market. Investors should note this increased price movement, which may present both risks and opportunities in the current environment.

Our full analysis on T. Rowe Price stock

Following an in-depth review of T. Rowe Price Group’s latest quarterly financials, alongside a holistic evaluation of the stock's trajectory over the past three years, our proprietary model has synthesized hard data, technical patterns, sector dynamics, and peer benchmarks to deliver this analysis. Built on a robust dataset of financial metrics and emerging market signals, this exploration distills why T. Rowe Price may stand at a compelling juncture for investors seeking both value and durability in the asset management space. So, why might T. Rowe Price stock once again become a strategic entry point into the U.S. financial services sector in 2025?

Recent Performance and Market Context

T. Rowe Price (NASDAQ: TROW) currently trades at $88.12 per share, reflecting a cautious investor sentiment in recent months. Over the last six months, TROW has experienced a 21.36% decline, and 20.11% over the past year, primarily as a result of macroeconomic pressures, cyclical downturns in asset management, and persistent net outflows. However, average daily trading volume remains robust at 2.2 million shares, a clear sign of ongoing institutional engagement and market liquidity.

Despite these headwinds, several positive factors have surfaced. First, Q1 2025 earnings revealed EPS of $2.15, exceeding analyst estimates ($1.97) and underscoring strong operational efficiency. Operating margins improved significantly to 33.8% (from 31.2% in Q4 2024) and AUM ticked up to $1.57 trillion, reversing the previous quarter’s contraction. Notably, fund performance is recovering, with 61% of TROW’s U.S. mutual funds now outperforming the Morningstar median.

Broader macroeconomic conditions are also tilting in favor of the asset management sector. Stabilizing interest rates, receding inflation, and optimism around U.S. retirement savings growth all serve as tailwinds for T. Rowe Price’s predominantly retirement-focused client base. Furthermore, the company’s industry-leading dividend yield of 5.76% continues to anchor return profiles, a substantial attraction amid lingering market uncertainty.

Technical Analysis

From a technical standpoint, TROW is at the crossroads of a long-consolidating base that may herald renewed bullish momentum. The Relative Strength Index (RSI at 48.06) positions the stock in neutral territory—neither overbought nor oversold—hinting at imminent volatility resolution. Contrasting technical signals exist: while the MACD (-1.36) issues a near-term sell indication, the 20-day exponential moving average (EMA) at $88.46 is turning bullish and acts as a short-term buy catalyst.

Critical support at $87.96–$86.34 has reliably contained recent declines, providing a solid technical floor that has been tested but not breached. Resistance exists at $89.57–$91.19; a decisive breakout above these levels could attract technical buyers and algorithmic capital flows. Additional signals worth noting:

• Williams %R at -26.96: buy signal, indicating near-term upward pressure.
• Stochastic RSI (14) at 80.03: indicates a short spike of overbought momentum, suggestive of a potential mean reversion and entry point consolidation.

Although longer-term EMAs (50-, 100-, and 200-day) remain bearish, present structural support and mixed indicators suggest that TROW may be primed for a reversal, especially if, as often seen in cyclical financial equities, a technical bottom coincides with a positive catalyst.

Fundamental Analysis

Peeling back the quantitative layers reveals a value story supported by operational resilience and attractive metrics. T. Rowe Price currently boasts a trailing P/E ratio of 9.63—well below the industry average—positioning it as a fundamentally undervalued operator in the asset management sphere. Likewise, the dividend yield of 5.76% remains not only high in absolute terms but also secure, supported by a conservative payout ratio and prudent capital allocation.

• Revenue clocked in at $1.76 billion (Q1 2025), and despite missing headline expectations by a slim margin, reflects near-term stabilization.
• EPS outperformed forecasts ($2.15 actual vs. $1.97 expected), indicating effective cost controls and margin defense.
• Operating margin expanded to 33.8%, a notable achievement in a margin-sensitive sector.
• AUM increased to $1.57 trillion, reversing a multi-quarter contraction trend, instilling confidence in the management team’s ability to sustain and grow its client base.

Structural advantages run deep: T. Rowe Price’s brand power and distribution reach across retail and institutional channels combine with its customer stickiness (two-thirds of AUM held in retirement-based accounts) to cushion against sector volatility. The company’s continuous improvement in fund performance—61% of U.S. funds outperforming peers—attests to a revitalized investment process.

From a valuation perspective, TROW’s low P/E, high dividend, robust margin profile, and return on equity create a compelling blend for investors seeking defensive growth at a reasonable price.

Volume and Liquidity

Liquidity remains a hallmark of T. Rowe Price stock. With an average trading volume of 2.2 million shares over the past three months and a public float of 218.1 million shares (98% of shares outstanding), TROW provides ample liquidity to accommodate sizable transactions without significant price impact. This substantial float underpins dynamic price discovery and tight execution, characteristics that favor both institutional and retail investors.

Consistently elevated volumes, especially during periods of earnings releases and macroeconomic data, underscore persistent market attention and bolster confidence in the price formation process. Furthermore, the highly liquid float supports stability in periods of market drawdowns, offering investors the flexibility to tactically adjust positions.

Catalysts and Positive Outlook

• Improved Fund Performance: As fund performance recovers, T. Rowe Price stands poised to regain market share and attract new assets, especially from fee-sensitive institutional clients.
• Cost Efficiency: Management’s successful expense discipline has driven margins higher, just as the sector rewards operational excellence.
• ESG Initiatives: The company’s enhancement of its ESG investment range appeals to an expanding pool of responsible investors, especially sovereign wealth and pension mandates.
• Stable, Recurring Revenue: The large, retirement-centric asset base provides predictable, recurring revenue streams insulated from short-term capital market swings.
• Potential Product Innovation: Ongoing investment in digital platforms and the potential launch of new alternative and private market funds offer fresh AUM growth opportunities.

Looking forward, sector-wide tailwinds such as U.S. demographic trends, favorable regulatory signals for retirement investing, and renewed risk appetite as central bank policies ease, all bolster TROW’s growth runway. The company appears well-positioned to capture inflows as investor sentiment pivots, likely leading to re-rating potential and stronger revenue dynamics.

Investment Strategies

Given the interplay of technical, fundamental, and macro factors, T. Rowe Price offers several strategic avenues for investors:

• Short-Term Entry:
• The proximity to long-established technical support ($87–$88) and recent compression in volatility make TROW attractive for swing traders seeking a rebound off oversold levels, especially ahead of upcoming dividend announcements or sector rallies.
• Medium-Term Positioning:
• The ongoing improvement in fund outperformance and stabilization in AUM suggest that medium-term investors may benefit from a mean reversion trajectory toward the analyst consensus target price ($91.38). This timeline aligns with expected macro inflections and further margin improvements.
• Long-Term Accumulation:
• For income-oriented and growth-focused investors, TROW’s historically attractive yield, low valuation, and established industry presence make it a compelling candidate for core portfolio allocation. The secular trend toward higher retirement savings, combined with management’s strategic discipline, adds conviction to a buy-and-hold thesis.

Importantly, ideal positioning may be captured by accumulating shares near current technical lows or on confirmation of a decisive breakout above resistance ($91.19), especially as bullish catalysts materialize.

Is it the Right Time to Buy T. Rowe Price?

Summing up, T. Rowe Price Group emerges as a rare confluence of defensive value and upside optionality within the U.S. financial sector. The company’s strong balance sheet, sector-leading dividend yield, operational and margin discipline, and advancing fund performance create a solid investment narrative, especially for those seeking both reliable income and potential capital appreciation.

While near-term technicals remain mixed, the robust support structure, improving internal trends, and macro tailwinds all suggest that TROW may be entering a new, constructive phase. The deceleration in net outflows and advancements in fund performance set the stage for renewed organic growth, while sustained trading liquidity and prudent management reduce downside risks.

For investors navigating a changing market landscape, T. Rowe Price seems to represent an excellent opportunity—one that combines compelling value, sector resilience, and clear triggers for renewed upside. The company’s robust fundamentals and improving outlook justify renewed interest, making this a moment to seriously consider TROW for strategic portfolio inclusion as the asset management sector prepares for its next chapter of growth and innovation.

In the evolving landscape of financial services, T. Rowe Price offers a uniquely resilient and attractive profile, and the convergence of positive dynamics suggests it may be poised for a return to sustained outperformance in the months ahead.

How to buy T. Rowe Price stock in United States?

Buying T. Rowe Price Group (TROW) stock online is both simple and secure, thanks to a wide selection of regulated brokers in the United States. Investors can choose between two primary methods: spot buying (direct purchase) of TROW shares, granting ownership and eligibility for dividends, or trading TROW via Contracts for Difference (CFDs), which allows speculation on price movements with leverage. Each method has its own set of advantages and fees, so understanding the differences is key. For a helpful overview of top brokers for TROW, check the comparison table further down the page.

Spot Buying

A cash or spot purchase means buying T. Rowe Price shares directly through a brokerage, giving you legal ownership of the stock. This approach lets you benefit from dividend payments and any share price appreciation. Typical brokerage commissions in the U.S. are around $5 per transaction, though some platforms may offer commission-free trades.

Example

If the T. Rowe Price share price is $88.12, and you invest $1,000, you could buy about 11 shares ($1,000 ÷ $88.12 ≈ 11), accounting for a $5 brokerage fee.

• Gain scenario:
  If TROW’s price rises by 10%, your holding would be worth about $1,100.
  
  • Result: That’s a $100 gross gain (+10%) on your $1,000 investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on T. Rowe Price’s share price without owning the underlying stock. CFDs typically involve a "spread" (the difference between buy and sell prices) and may incur overnight financing fees if held more than a day. Importantly, CFDs allow you to use leverage, meaning you can control a larger position with a smaller upfront investment.

Example

You open a CFD position on TROW with $1,000 of your capital, using 5x leverage. Your market exposure is now $5,000.

• Gain scenario:
  If TROW rises by 8%, your position gains 8% × 5 = 40%. That’s a $400 gain on your $1,000 stake (excluding fees).

Final Advice

Before investing, it’s essential to compare brokers’ fees and conditions, as these can vary by platform and order type. The best method for you depends on your objectives: long-term investment and dividend income (cash purchase), or short-term strategies and leverage (CFDs). Take the time to review the broker comparison below to find the option that aligns with your goals and risk tolerance.

Application

Rates & Fees

Learn More

#1

eToro

#2

IG

#3

Avatrade

Our 7 tips for buying T. Rowe Price stock

The latest news about T. Rowe Price

T. Rowe Price reported Q1 2025 earnings with EPS beating expectations and operating margins improving. On May 2, 2025, the company posted first-quarter results with adjusted earnings per share of $2.23, ahead of consensus estimates at $1.97, reflecting strong cost management and margin expansion, as the adjusted operating margin rose to 36.1%. Despite a mild revenue miss, the operating margin increased to 33.8% from last quarter’s 31.2%, demonstrating effective expense control and resilience in the company’s business model.

Assets under management (AUM) grew to $1.57 trillion in Q1, and U.S. fund performance improved significantly. T. Rowe Price's AUM increased from $1.54 trillion to $1.57 trillion over the previous quarter, a sign of stability amid a challenging environment. Notably, 61% of the company’s U.S. funds outperformed the Morningstar median. This strong investment performance bodes well for strengthening client confidence and belying the negative trend of sector-wide outflows.

The company maintained one of the sector’s highest dividend yields at 5.76%, strengthening its income-investor appeal. Currently yielding 5.76% with a forward dividend of $5.08 per share annually, T. Rowe Price stands out among its asset management peers. The quarterly dividend payment schedule and robust cash generation capacity reinforce the stock’s attractiveness, particularly for U.S.-based income-focused investors utilizing tax-advantaged retirement accounts such as 401(k)s and IRAs.

Net outflows continued but showed marked improvement, dropping to -$8.6 billion from -$19.3 billion in the prior quarter. While the company logged its 13th consecutive quarter of net outflows, the magnitude has significantly lessened, suggesting early signs of stabilization. This improvement aligns with management’s statements on cost discipline and may indicate waning client churn if positive fund performance persists and equity markets remain constructive.

Analyst consensus points to moderate short-term upside, with a target price of $91.38, representing a 3.7% premium. Most recent Wall Street coverage indicates a neutral to slightly optimistic stance, with price targets modestly above current levels—primarily on the back of strengthened operating margins, stable asset base, and ongoing dividend support. While technical metrics currently advocate caution, the combination of improved fundamentals and dividend strength is viewed as constructive for long-term holders within the U.S. market.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.