In the latest trading session, T. Rowe Price (TROW) closed at $113.61, marking a -1.64% move from the previous day.
Inflationary pressures and rising interest rates are weighing on consumers and businesses alike. There's no telling when this economic pressure will subside, but one smart move you can make as an investor is focusing on companies with fortress balance sheets. High cash balances, low or no debt, and the ability to generate cash flows will give any company the ability to take advantage of a tough market, whether that means acquiring beaten-down companies, issuing dividends, or buying back their stocks at discounted rates.
With a nearly $2.6 billion cash and investments balance and no long-term debt, interest rate hikes won't hurt the asset manager T. Rowe Price Group (NASDAQ: TROW). The market downturn has caused T. Rowe Price's assets under management (AUM) to fall 11.9% year over year to $1.4 trillion as of May. Adjusted net revenue and non-GAAP (generally accepted accounting principles) diluted earnings per share (EPS) are expected to drop 5.7% and 19.6% year over year in 2022.