Ameriprise beats Q2, returns billions to shareholders, but CEO sells 33% stake
Q2 earnings beat on record assets Ameriprise reported Q2 adjusted EPS of $11.07, beating estimates, with revenue up 12.8% to $4.94 billion. Assets under management hit a record $1.8 trillion, up 14% from a year ago. Strong results show the core business is growing and profitable, which supports a higher stock price.
This is the primary new financial result that directly shows the company's profit growth and scale, a key driver for the stock.
Massive buyback and dividend growth Ameriprise completed a $3.44 billion buyback and authorized an additional $5.5 billion through 2028. It also declared a $1.70 quarterly dividend, extending its 21-year streak of increases. These moves return cash to shareholders, boost earnings per share, and signal confidence in future cash flow.
Capital return is a major reason investors hold AMP and directly affects per-share value and income.
CEO sells 33% of his stake CEO James Cracchiolo sold $28.9 million in shares, cutting his direct holdings by 33%. While the sale was part of an option exercise, a large insider sale can worry investors that management sees limited upside, potentially pressuring the stock.
Insider selling is a notable counterweight to the positive earnings and buyback news, and readers should be aware of it.
Comerica outflow offset by new client wins Ameriprise is losing $19 billion in client assets from Comerica by the end of Q3, but Huntington Bank's onboarding is expected to offset the loss. Management also highlighted AI-driven productivity gains and sustainable margins. The outflow is a headwind, but new business and efficiency gains may balance it.
This explains a key risk to asset growth and how management plans to mitigate it, affecting future revenue.