Equity Research Analyst Job Description, Key Duties and Responsibilities

Equity Research Analyst job description, duties, tasks, and responsibilities.
Equity Research Analysts help their clients or company make the best investment decision.

Equity Research Analyst Job Description, Key Duties and Responsibilities

Are you searching for information about the equity research analyst job description? If you are, then this post will be valuable to you.

It provides key duties, tasks, and responsibilities that commonly make up the equity research analyst work description

You will find this page helpful if you are a job seeker looking to be hired as an equity research analyst. You will discover the major requirements most recruiters commonly set for the role.

Please, continue reading:

What Does an Equity Research Analyst Do?

An equity research analyst is responsible for conducting analysis and providing financial insights on securities, publicly-traded companies/sectors to aid the organization or its clients in making solid investment decisions within fund allocations.

They work with security firms, investment management companies, banks, etc

The equity research analyst job description entails building expertise on an assigned sector to understand how market events impact forward relative returns, as well as conducting due diligence on industry and company related trends, analysis of company reported financials, along with extensive modeling and valuation work.

It also involves providing the Investment Policy Committee (IPC) or appropriate unit with regular and ad hoc performance analysis and commentary, and proactively helping to identify industries and stocks likely to outperform selected benchmarks.

Other duties equity research analysts perform include providing quantitative input for the industry and company-specific research and assisting in the preparation of financial models, written reports, and field research.

They are also responsible for preparing research reports that include company overview, competitive analysis, valuation, and other relevant information based on quantitative and fundamental factors.

They are responsible for collecting information such as SEC filings; attending investment conferences; meeting company management, and speaking with industry experts.

The equity research analyst work description also entails preparing presentations for portfolio managers, clients, consultants, and prospects to review the company’s investment process, portfolio construction, individual positions, and performance.

It also includes providing subject matter expertise in their chosen sector; interacting with senior management on assigned corporations to discuss industry/company trends, and current and projected sales and margin outlook to assist them in making sound investment decisions.

Equity research analysts partner with other professional securities analysts both inside and outside the company.

They are also responsible for developing proprietary research and writing reports which is communicated and distributed to clients.

They provide assistance in managing relationships with the senior management team (CEOs, CFOs) of companies under their portfolio.

To work as equity research analyst requires a minimum of Bachelor’s degree.

Individuals interested in the equity research analyst career must possess solid financial foundation, excellent communication and strong research skills; high level of attention to detail, team-work ability, and advanced computer skills to perform their job successfully.

Equity Research Analyst Job Description Example/Sample/Template

The research analyst performs various functions, including undertaking research and evaluating probable risk and potential returns on investments to help the organization or its clients make wise investment decisions.

He/she plays an integral role in the research process through providing comprehensive industry and company coverage for both institutional and individual clients.

The major tasks, duties, and responsibilities of the equity research analyst are shown in the job description example below:

  • Maintenance of macro and industry data series as well as company specific financial models
  • Partner with the senior analyst in charge, and work within a focused industry team of associates to cover group of 15+ stocks, including small, mid, and large cap companies
  • Responsible for scrutinizing and projecting company financials, as well as perform valuation analysis
  • Responsible for synthesizing data to generate new investment ideas and/or propose investment action to investment officers and account administrators concerning assigned corporations or committees
  • Communicate key findings and recommendations to appropriate unit/team
  • Conduct assessment on environmental, social, and governance (ESG) risks, and opportunities
  • Responsible for the planning of industry, sector, and company reports and presentations for internal and external clients
  • Responsible for managing client requests
  • Participate in industry and company sponsored conferences and field trips
  • Responsible for initiating research and apply multiple sources, including annual or industry reports, trade journals, technical periodicals, and brokers and management reports to conduct research relating to the investment suitability of various securities
  • Stay abreast of trends in business conditions and/or monetary policy that could affect the investment market.

Equity Research Analyst Requirements – Skills, Knowledge, and Abilities for Career Success

To find capable people for the role of the equity research analyst who can effectively perform the obligations, purpose, and objectives of the position that will be assigned to them, recruiters usually give a set of requirements that applicants must meet to access the job.

Shown below are major requirements that interested individuals for the equity research analyst position must meet to be considered for hiring:

  • Education: Applicants for the equity research analyst role require a minimum of Bachelor’s degree in Business, Finance, Accounting, or Economics
  • Certification: Recruiters may prefer to hire individuals with an advanced degree or CFA certification
  • Knowledge: Applicants must possess a strong financial background with knowledge of financial modeling, and ability to dissect financial reports and perform valuation
  • Critical thinking skills: They are also required to have idea generation and thought leadership abilities. It is important that equity research analyst can synthesize data as well as apply logic and reasoning to decipher the strength and weakness of a problem, and generate new investment ideas or recommend investment decisions
  • Interpersonal skills: They are also expected to possess strong interpersonal skills for establishing and developing relationships with multiple stake holders, including senior management of assigned companies, team members, and other internal and external securities professionals
  • Attention to detail: Applicants must have high attention to detail to ensure consistent accuracy in all work documents and data used to arrive at a valid conclusion
  • Teamwork abilities: It is essential that they can work effectively in a team oriented environment to effectively collaborate with the sales, client service, and trading teams
  • Strong communication skills: It is essential that applicants possess exceptional reading, writing, and oral communication skills necessary for them to read detailed work documents, author thought provoking differentiated sell-side equity research; write objective reports and verbally communicate information clearly and effectively to others
  • Quantitative skills: It is also vital that they are highly numerate individuals with the capability to work with large data to derive fact-based insights
  • Computer skills: They must possess advanced computer skills, especially proficiency in Excel, with financial modeling experience, PowerPoint, and word.

Conclusion

If you are a recruiter hiring for the equity research analyst position in your company, you will need to make a description of the job available to interested individuals to help them understand what the duties and responsibilities of the role are.

To write a detailed description for the equity research analyst role for your organization, you can make use of the sample job description provided above as a template.

You can simply edit it to create the perfectly equity research analyst work description for your organization.

You will also find this post helpful if you are interested in getting into the equity research analyst career. You will be able to learn and increase your knowledge of what equity research analysts do, and therefore be able to make informed decisions about your career path.

Did this article help improve your knowledge and understanding of the duties and responsibilities equity research analysts perform? Please, leave a comment in the box below. Do also discuss your job description if you work as an equity research analyst.

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