What Happened?
Shares of investment management firm Cohen & Steers (NYSE: CNS) jumped 4.2% in the morning session after the company reported third-quarter financial results that surpassed analyst expectations for both profit and revenue. The investment management firm announced adjusted earnings per share of $0.81, beating the consensus estimate of $0.78. Revenue for the quarter also topped forecasts, coming in at $141.7 million, which represented a 6.4% increase from the same period in the previous year. The positive top- and bottom-line results were encouraging for investors and drove the stock higher, despite a noted year-on-year decline in the company's pre-tax profit margin.
After the initial pop the shares cooled down to $68.68, up 4.3% from previous close.
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What Is The Market Telling Us
Cohen & Steers’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 5.7% on the news that the stock rallied along with the broader market as comments from Federal Reserve Chair Jerome Powell sparked hopes of a potential interest rate cut.
The stock moved in tandem with a widespread market rally after Federal Reserve Chair Jerome Powell hinted that interest rate cuts could be on the horizon. Speaking at the annual central banking symposium at Jackson Hole, Powell's remarks ignited investor optimism. In response, Wall Street surged, with the Dow Jones Industrial Average soaring over 900 points to an all-time high. The S&P 500 and Nasdaq Composite also posted significant gains of 1.6% and 2.0%, respectively, marking one of the market's best days in months. The rally was fueled by hopes that lower interest rates would stimulate the economy.
Cohen & Steers is down 24.8% since the beginning of the year, and at $68.68 per share, it is trading 35.6% below its 52-week high of $106.60 from November 2024. Investors who bought $1,000 worth of Cohen & Steers’s shares 5 years ago would now be looking at an investment worth $1,183.
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