Principal Financial Group Inc. (PFG) Raised to “Hold” at Zacks Investment Research
According to Zacks, “Principal Financial’s focus on fee-based revenue sources has been helping it to earn steadily, and limits exposure to the interest rate environment. Annuity and insurance business also offer sustained earnings growth. The company’s inorganic story remains impressive with buyouts strengthening its international footprint. It also remains focused on effective capital deployment to enhance shareholder value. However, the company’s investment results will likely be hurt by a soft interest rate environment, restricting any major improvement. Escalating expenses pose concerns. The compnay is set to release third quarter results on Oct 27. However, our proven model cannot conclusively state if it will beat earnings because though Zacks Rank #3 increases the predictive power of a beat, combined with Earnings ESP of 0.00% makes prediction difficult. Nonetheless, the Zacks Consensus Estimate is pegged at $1.11, up 4.72% year over year.”
A number of other analysts have also commented on the stock. Credit Suisse Group AG began coverage on shares of Principal Financial Group in a report on Friday, October 7th. They set an underperform rating and a $53.00 target price for the company. Goldman Sachs Group Inc. lifted their target price on shares of Principal Financial Group from $40.00 to $45.00 and gave the stock a sell rating in a report on Friday, September 23rd. Wells Fargo & Co. reissued an outperform rating on shares of Principal Financial Group in a report on Friday, September 23rd. RBC Capital Markets set a $52.00 price target on shares of Principal Financial Group and gave the company a buy rating in a report on Friday, August 19th. Finally, Deutsche Bank AG set a $48.00 price target on shares of Principal Financial Group and gave the company a hold rating in a report on Wednesday, August 3rd. Four investment analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have given a buy rating to the stock. Principal Financial Group presently has a consensus rating of Hold and a consensus price target of $48.73.
Principal Financial Group (NYSE:PFG) opened at 52.26 on Thursday. Principal Financial Group has a 52-week low of $33.09 and a 52-week high of $53.11. The firm has a market capitalization of $15.03 billion, a P/E ratio of 12.43 and a beta of 1.66. The firm’s 50-day moving average is $50.27 and its 200 day moving average is $45.10.
Principal Financial Group (NYSE:PFG) last released its earnings results on Thursday, July 28th. The company reported $1.15 EPS for the quarter, topping analysts’ consensus estimates of $1.06 by $0.09. Principal Financial Group had a net margin of 10.20% and a return on equity of 12.52%. During the same quarter last year, the firm posted $1.09 earnings per share. Equities analysts anticipate that Principal Financial Group will post $4.37 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Friday, September 2nd were given a dividend of $0.41 per share. The ex-dividend date of this dividend was Wednesday, August 31st. This is a boost from Principal Financial Group’s previous quarterly dividend of $0.39. This represents a $1.64 annualized dividend and a yield of 3.14%. Principal Financial Group’s payout ratio is 38.86%.
In other news, EVP Timothy Mark Dunbar sold 5,000 shares of the company’s stock in a transaction dated Wednesday, October 5th. The shares were sold at an average price of $52.00, for a total value of $260,000.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.78% of the stock is currently owned by insiders.
Several large investors have recently modified their holdings of the stock. Americafirst Capital Management LLC purchased a new stake in shares of Principal Financial Group during the second quarter worth about $100,000. Acrospire Investment Management LLC boosted its stake in shares of Principal Financial Group by 17.4% in the second quarter. Acrospire Investment Management LLC now owns 2,700 shares of the company’s stock worth $111,000 after buying an additional 400 shares during the last quarter. Washington Trust Bank boosted its stake in shares of Principal Financial Group by 0.9% in the third quarter. Washington Trust Bank now owns 2,721 shares of the company’s stock worth $140,000 after buying an additional 25 shares during the last quarter. Cascade Investment Advisors Inc. purchased a new stake in shares of Principal Financial Group during the second quarter worth about $121,000. Finally, MSI Financial Services Inc boosted its stake in shares of Principal Financial Group by 17.9% in the third quarter. MSI Financial Services Inc now owns 3,103 shares of the company’s stock worth $160,000 after buying an additional 472 shares during the last quarter. 67.11% of the stock is currently owned by institutional investors.
Principal Financial Group Company Profile
Principal Financial Group, Inc is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance services. The Company’s segments include Retirement and Income Solutions; Principal Global Investors, Principal International, and U.S.
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