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 IncCompleted $3.44B buyback retiring 7.66% of shares, boosting EPS and signaling confidence.
