How Quarterly Results and Major Buybacks at Affiliated Managers Group (AMG) Could Reshape Its Investment Narrative

• Affiliated Managers Group reported its second quarter 2025 results, provided new third quarter earnings guidance, and announced that it completed the repurchase of 1,713,958 shares for US$293.31 million since July 2024.
• The company's quarterly net income increased year-over-year despite lower sales, and its continued buyback activity reflects a focus on capital return.
• We'll examine how the company's updated earnings guidance and substantial buyback progress may impact its long-term investment narrative.

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Affiliated Managers Group Investment Narrative Recap

To be a shareholder in Affiliated Managers Group, investors generally need confidence in the company's model of capitalizing on persistent demand for alternative assets, along with disciplined capital allocation and affiliate growth. The latest results show robust earnings growth year-over-year despite lower sales, while the new third quarter guidance appears consistent with recent earnings trends, so the most important catalyst, continued acceleration in alternative asset flows, remains intact. The top risk of concentrated earnings among core affiliates does not seem materially changed by this update.

Among the recent updates, the substantial buyback of 1,713,958 shares for US$293.31 million stands out. This continued focus on returning capital to shareholders via buybacks enhances per-share earnings metrics, tying directly to one of the core near-term catalysts for AMG’s investment case and supporting its capital allocation narrative.

However, investors should also be mindful of the possibility that ongoing shifts toward passive and lower-cost investment strategies could eventually...

Read the full narrative on Affiliated Managers Group (it's free!)

Affiliated Managers Group's narrative projects $2.2 billion revenue and $594.9 million earnings by 2028. This requires 2.7% yearly revenue growth and a $152.5 million earnings increase from $442.4 million currently.

Uncover how Affiliated Managers Group's forecasts yield a $238.86 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Retail investors in the Simply Wall St Community set fair values between US$238.86 and US$259.63, based on two separate forecasts. With earnings growth still closely tied to a select group of affiliates, these varied outlooks show just how much opinions can differ, encouraging you to explore the broader range of perspectives before reaching conclusions.

Explore 2 other fair value estimates on Affiliated Managers Group - why the stock might be worth as much as 16% more than the current price!

Build Your Own Affiliated Managers Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Affiliated Managers Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Affiliated Managers Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Affiliated Managers Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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