AlTi Global (NASDAQ:ALTI) Issues Quarterly Earnings Results

AlTi Global (NASDAQ:ALTI) announced its quarterly earnings results on Monday. The basic materials company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.01), FiscalAI reports. The company had revenue of $57.90 million for the quarter, compared to analyst estimates of $65.80 million. AlTi Global had a negative return on equity of 1.61% and a negative net margin of 40.86%.

Here are the key takeaways from AlTi Global’s conference call:

• AUM and recurring fees grew: Assets under management reached $51.6 billion, up 5% year over year, primarily on strong investment performance. Recurring management and advisory fees rose 7%, although total revenue increased only 1% to $58 million.
• Expense reductions improved results: Operating expenses fell 25% year over year to $64 million, and adjusted EBITDA increased 1% year over year to more than $6 million. Management said further savings are expected, while noting some of the expense decline reflected the absence of prior-year costs.
• Outflows and an upcoming investment writedown weigh on the outlook: Net wealth management outflows were about $250 million, as reductions in lower-fee legacy accounts exceeded new client funding. AlTi expects a further $20 million–$23 million non-cash unrealized loss in Q4 on its Zebedee stake.
• New credit facility supports targeted growth: AlTi secured an $85 million facility, with $28 million drawn, and plans to use available capital in part for advisor and team lift-outs that expand existing offices and support growth. The revolver remains undrawn, and the delayed-draw term loan is intended for future opportunities.

AlTi Global Price Performance

Shares of ALTI stock traded up $0.13 during mid-day trading on Monday, hitting $2.47. 196,238 shares of the stock were exchanged, compared to its average volume of 178,099. The firm has a fifty day moving average of $2.89 and a 200 day moving average of $3.57. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.02. AlTi Global has a 52-week low of $2.26 and a 52-week high of $5.45. The company has a market cap of $385.18 million, a PE ratio of -1.78 and a beta of 0.82.

Analyst Upgrades and Downgrades

ALTI has been the topic of a number of recent research reports. Weiss Ratings restated a “sell (d-)” rating on shares of AlTi Global in a research note on Thursday, October 15th. Zacks Research raised AlTi Global from a “strong sell” rating to a “hold” rating in a report on Monday, October 19th. Finally, Wall Street Zen upgraded AlTi Global from a “sell” rating to a “hold” rating in a research report on Saturday, September 19th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, AlTi Global has an average rating of “Reduce”.

AlTi Global Company Profile

AlTi Global, Inc is a global independent wealth manager that provides investment and advisory services to entrepreneurs, families, foundations and institutions. The company helps clients manage and preserve wealth through customized portfolio management, financial planning, investment advisory and family-office solutions.

Its services include traditional and alternative investment strategies, private markets and impact investing, as well as advice on governance, philanthropy, estate planning and other complex financial matters.