Zacks Investment Research Downgrades Primerica Inc. (PRI) to Hold
Primerica Inc. (NYSE:PRI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Primerica, Inc. provides financial products and services. It assists its clients in meeting their needs for term life insurance, which it underwrites, and mutual funds, variable annuities and other financial products, which it distributes primarily on behalf of third parties. The Company’s mission is to serve middle income families by helping them make informed financial decisions and providing them with a strategy and means to gain financial independence. The Company’s sales representatives use its proprietary financial needs analysis, or FNA, tool and an educational approach to demonstrate how its products can assist clients to provide financial protection for their families, save for their retirement and manage their debt. The Company’s clients are generally middle income consumers. Primerica also provides an entrepreneurial business opportunity for individuals to distribute its financial products. The Company is based in Duluth, Georgia. “
Several other equities analysts also recently issued reports on PRI. Keefe, Bruyette & Woods downgraded shares of Primerica from an “outperform” rating to a “market perform” rating and increased their price objective for the company from $58.00 to $60.00 in a report on Tuesday, July 12th. Wells Fargo & Co. initiated coverage on shares of Primerica in a report on Thursday, September 22nd. They set a “market perform” rating on the stock. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $61.50.
Primerica (NYSE:PRI) opened at 55.18 on Wednesday. Primerica has a 1-year low of $37.09 and a 1-year high of $59.34. The stock has a market capitalization of $2.56 billion, a PE ratio of 13.47 and a beta of 0.93. The company’s 50 day moving average is $55.73 and its 200-day moving average is $53.40.
Primerica (NYSE:PRI) last announced its quarterly earnings results on Monday, August 8th. The company reported $1.19 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.06 by $0.13. Primerica had a net margin of 13.90% and a return on equity of 17.32%. The firm had revenue of $379.24 million for the quarter, compared to the consensus estimate of $370.76 million. During the same period in the prior year, the firm posted $0.93 earnings per share. The firm’s quarterly revenue was up 8.2% compared to the same quarter last year. Analysts forecast that Primerica will post $4.41 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 16th. Stockholders of record on Wednesday, August 24th were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.30%. This is a boost from Primerica’s previous quarterly dividend of $0.17. The ex-dividend date was Monday, August 22nd. Primerica’s dividend payout ratio is 17.56%.
In other news, insider William A. Kelly sold 1,500 shares of the stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $52.93, for a total value of $79,395.00. Following the completion of the sale, the insider now directly owns 26,630 shares in the company, valued at $1,409,525.90. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Joel M. Babbit sold 1,406 shares of the stock in a transaction dated Wednesday, September 7th. The shares were sold at an average price of $57.31, for a total transaction of $80,577.86. Following the completion of the sale, the director now owns 1,915 shares of the company’s stock, valued at $109,748.65. The disclosure for this sale can be found here. 1.24% of the stock is currently owned by insiders.
Several large investors have recently modified their holdings of PRI. Cantillon Capital Management LLC acquired a new stake in shares of Primerica during the second quarter worth approximately $63,579,000. Ruane Cunniff & Goldfarb Inc. boosted its stake in shares of Primerica by 31.2% in the second quarter. Ruane Cunniff & Goldfarb Inc. now owns 3,780,842 shares of the company’s stock worth $216,415,000 after buying an additional 898,291 shares during the period. Vanguard Group Inc. boosted its stake in shares of Primerica by 14.4% in the second quarter. Vanguard Group Inc. now owns 4,173,713 shares of the company’s stock worth $238,904,000 after buying an additional 526,902 shares during the period. JPMorgan Chase & Co. boosted its stake in shares of Primerica by 85.4% in the first quarter. JPMorgan Chase & Co. now owns 590,793 shares of the company’s stock worth $26,308,000 after buying an additional 272,080 shares during the period. Finally, British Airways Pensions Investment Management Ltd acquired a new stake in shares of Primerica during the second quarter worth approximately $15,575,000.
Primerica Inc (Primerica) distributes financial products to middle-income households. The Company operates through three segments. The Term Life Insurance segment includes underwriting profits on its in-force book of term life insurance policies, net of reinsurance, which are underwritten by its life insurance company subsidiaries.
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