Zacks Investment Research upgraded shares of Financial Engines, Inc. (NASDAQ:FNGN) from a hold rating to a buy rating in a report published on Thursday, November 2nd. Zacks Investment Research currently has $39.00 price objective on the asset manager’s stock.
According to Zacks, “Financial Engines, Inc. is an independent investment advisor that provides personalized retirement plans for saving, investing, and retirement income. Financial Engines offers both online advice and professional management to meet the needs of different investors. Its services include Professional Management, a discretionary managed account service designed for plan participants who want personalized and professional portfolio management services, investment advice, and retirement help from an independent investment advisor; Online Advice, a nondiscretionary Internet-based service that offers personalized advice to plan participants who wish to take an active role in personally managing their retirement portfolios; and Retirement Evaluation, a retirement readiness assessment provided to plan participants upon plan rollout. Financial Engines, Inc. is headquartered in Palo Alto, California. “
A number of other research analysts have also commented on the stock. Sidoti started coverage on shares of Financial Engines in a research note on Monday, July 10th. They set a buy rating on the stock. Barclays PLC started coverage on shares of Financial Engines in a research note on Friday, September 8th. They set an overweight rating and a $38.00 price objective on the stock. Three investment analysts have rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $38.50.
Shares of Financial Engines (NASDAQ FNGN) remained flat at $$27.20 during midday trading on Thursday. The stock had a trading volume of 544,000 shares, compared to its average volume of 378,466. Financial Engines has a 1-year low of $24.45 and a 1-year high of $45.75. The stock has a market cap of $1,722.23, a P/E ratio of 28.63, a PEG ratio of 1.85 and a beta of 2.25.
Financial Engines (NASDAQ:FNGN) last issued its earnings results on Thursday, November 2nd. The asset manager reported $0.36 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.36. Financial Engines had a net margin of 10.56% and a return on equity of 7.60%. The firm had revenue of $122.20 million for the quarter, compared to analysts’ expectations of $124.11 million. During the same quarter last year, the company posted $0.31 earnings per share. Financial Engines’s revenue was up 8.7% on a year-over-year basis. research analysts predict that Financial Engines will post 1.03 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 5th. Investors of record on Thursday, December 14th will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 1.03%. The ex-dividend date is Wednesday, December 13th. Financial Engines’s dividend payout ratio is 36.36%.
Financial Engines announced that its Board of Directors has initiated a share repurchase plan on Thursday, November 2nd that authorizes the company to buyback $60.00 million in shares. This buyback authorization authorizes the asset manager to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.
In related news, insider Jeffrey C. Grace sold 6,180 shares of Financial Engines stock in a transaction on Thursday, October 26th. The shares were sold at an average price of $37.00, for a total value of $228,660.00. Following the transaction, the insider now owns 9,414 shares in the company, valued at approximately $348,318. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael E. Martin sold 4,109,128 shares of Financial Engines stock in a transaction on Tuesday, August 22nd. The stock was sold at an average price of $33.05, for a total transaction of $135,806,680.40. The disclosure for this sale can be found here. Insiders have sold a total of 4,151,762 shares of company stock worth $137,335,013 in the last 90 days. 9.27% of the stock is owned by insiders.
Institutional investors have recently modified their holdings of the company. UBS Asset Management Americas Inc. boosted its position in shares of Financial Engines by 58.2% during the 1st quarter. UBS Asset Management Americas Inc. now owns 31,195 shares of the asset manager’s stock valued at $1,359,000 after acquiring an additional 11,476 shares in the last quarter. Janus Henderson Group PLC acquired a new stake in shares of Financial Engines during the 2nd quarter valued at about $106,955,000. Goldman Sachs Group Inc. boosted its position in Financial Engines by 32.8% in the first quarter. Goldman Sachs Group Inc. now owns 128,617 shares of the asset manager’s stock valued at $5,601,000 after buying an additional 31,791 shares in the last quarter. Vanguard Group Inc. boosted its position in Financial Engines by 5.3% in the second quarter. Vanguard Group Inc. now owns 5,221,858 shares of the asset manager’s stock valued at $191,120,000 after buying an additional 261,539 shares in the last quarter. Finally, Scout Investments Inc. boosted its position in Financial Engines by 32.6% in the second quarter. Scout Investments Inc. now owns 49,600 shares of the asset manager’s stock valued at $1,815,000 after buying an additional 12,200 shares in the last quarter.
About Financial Engines
Financial Engines, Inc is a provider of independent, technology-enabled financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance. The Company offers personalized plans for saving, investing, and generating retirement income, as well as by providing assessments of retirement income needs and readiness.
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