Fiera Capital (TSX:FSZ) is a Montreal-based Canadian asset management company. Shares have dropped 8.2% over the past three months as of close on January 3.
The Canadian financials sector has performed very poorly in late 2018 and in the early days of 2019, and Fiera Capital has been no different.
However, financial equities have broadly fallen into oversold territory on the TSX. Investors betting on a rebound in 2019 should consider adding Fiera Capital in January. The company released its third-quarter results on November 9.
Assets under management at Fiera Capital rose 17% year-over-year to $143.5 billion. This growth was powered by positive client inflows and the acquisition of Clearwater Capital Partners.
The company reported adjusted earnings per share of $0.29 compared to $0.28 in the prior year. Adjusted EBITDA rose to $0.38 over $0.33 in Q3 2017. The increase in adjusted EBITDA was primarily due to improved revenues year over year.
The board of directors declared a quarterly dividend of $0.20 per share. This represents an attractive 6.8% yield. Glancing at technicals, Fiera Capital’s RSI last stood at 53. The stock is therefore in neutral territory after being technically oversold back in mid-December.
Fiera Capital has largely weathered a difficult year and is an enticing option in early January. The stock offers a very attractive dividend and will be a beneficiary of positive momentum on the TSX after the down finish to 2018.
