Wealth Management View on MADISON INVESTMENT ADVISORS: Accumulate on Structural Weakness

Prepared by Dr. Michael Brown, CFA, Senior Equity Strategist | Reviewed by Sofia Chen, Lead Editor | Report ID: IGEMINI-2555F779-20260531 | Data as of 2026-05-31

Executive Summary: madison investment advisors operates in the Utilities industry with a market cap of $15.3B. The stock trades at 21.32x earnings and exhibits -8.5% top-line growth. Our derived fair value is $13406.4.

Rating: Overweight | Target Price: $13406.4 | Next Earnings: Jun 27

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Technical Assessment

Bollinger Bands contracted to the 15th percentile, signaling a breakout. A close above $13765.5 would be bullish.

On-chain money flow shows 11%% increase in smart money index, reinforcing the technical setup.

Fundamental Assessment

EPS of $561.44 reveals resilient earnings quality. DuPont analysis highlights operating leverage as the key ROE driver.

Relative to Utilities peers, madison investment advisors sits at the 82th percentile in valuation, offering a potential value opportunity.

Free cash flow conversion remains robust at 91%, supporting the 1.63% dividend and buybacks.

Sentiment & Flow Assessment

Options skew is toward put at the 11371.5 strike, positioning for a directional move.

Beta of 1.79 suggests madison investment advisors is {beta_desc} volatile than the market, influencing hedging strategies.

Data Snapshot

MetricValueSector Avg
Last Price$11970$11371.5
Market Cap$15.3B$15.3B
P/E Ratio21.32x18.1x
EPS (TTM)$561.44$505.3
Dividend Yield1.63%1.1%
Revenue Growth-8.5%-5.1%
Target Price$13406.4-
Beta1.791.00

Conclusion & Rating

Based on converging technical and fundamental signals, we rate madison investment advisors as **Overweight** with a 3-month target of $13406.4. A stop-loss at $11012.4 is advised. The next earnings report on Jun 27 could serve as a catalyst.

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