Prudential Financial, Inc. (NYSE:PRU) Receives “Hold” Rating from Wells Fargo & Company
“We expect a modestly negative reaction to Q2 earnings in PRU shares. Adjusting 2017E for the miss. We are lowering our full-year 2017E to $10.06 from $10.69 to reflect the miss. No change to our 2018E of $11.15. No change to our $110 price target. More on the actuarial assumption review. The $653 million impact to life segment earnings from updates to reserves as a result of the actuarial assumption review was primarily driven by systems upgrades, which resulted in: 1) slight acceleration of claims, and 2) a change in estimating reinsurance cash flows, from a pay-as-you-go system to an accrual system. The net change will result in a quarterly degradation of $40 million pre-tax to life segment earnings. The change in assumptions in the annuity and retirement segments will add a combined $30 million pre-tax to quarterly earnings. We note the net $10 million degradation of quarterly earnings power is immaterial in the context of run-rate pretax earnings of $1.5 billion. What we liked.”,” the firm’s analyst commented.
Other equities research analysts have also issued reports about the company. Deutsche Bank AG lifted their price objective on Prudential Financial from $114.00 to $117.00 and gave the stock a buy rating in a research report on Wednesday, April 19th. Zacks Investment Research lowered Prudential Financial from a buy rating to a hold rating in a research report on Wednesday, June 14th. BidaskClub upgraded Prudential Financial from a hold rating to a buy rating in a research report on Wednesday, July 12th. Credit Suisse Group lowered their target price on Prudential Financial from $121.00 to $120.00 and set a neutral rating for the company in a research note on Tuesday, May 23rd. Finally, Royal Bank Of Canada restated a hold rating and issued a $113.00 target price on shares of Prudential Financial in a research note on Tuesday, June 27th. Nine research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. Prudential Financial has a consensus rating of Buy and an average target price of $111.21.
Shares of Prudential Financial (PRU) traded up 2.01% during trading on Thursday, reaching $112.49. The company’s stock had a trading volume of 2,088,224 shares. The stock’s 50 day moving average price is $109.66 and its 200-day moving average price is $107.87. The stock has a market cap of $48.37 billion, a price-to-earnings ratio of 12.32 and a beta of 1.50. Prudential Financial has a 52-week low of $72.25 and a 52-week high of $114.55.
Prudential Financial (NYSE:PRU) last issued its quarterly earnings data on Wednesday, August 2nd. The financial services provider reported $2.09 earnings per share for the quarter, missing the Zacks’ consensus estimate of $2.70 by $0.61. The business had revenue of $13.03 billion during the quarter, compared to the consensus estimate of $12.45 billion. Prudential Financial had a return on equity of 8.92% and a net margin of 7.15%. During the same quarter in the prior year, the business posted $1.84 earnings per share. Equities analysts anticipate that Prudential Financial will post $10.41 EPS for the current year.
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In other Prudential Financial news, Chairman John R. Strangfeld, Jr. sold 201,585 shares of Prudential Financial stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $110.00, for a total transaction of $22,174,350.00. Following the completion of the transaction, the chairman now owns 456,121 shares in the company, valued at $50,173,310. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charles F. Lowrey sold 222,857 shares of Prudential Financial stock in a transaction on Monday, May 8th. The shares were sold at an average price of $108.04, for a total value of $24,077,470.28. Following the transaction, the insider now owns 151,418 shares of the company’s stock, valued at approximately $16,359,200.72. The disclosure for this sale can be found here. 0.66% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. boosted its position in Prudential Financial by 3,296.9% in the first quarter. BlackRock Inc. now owns 32,220,957 shares of the financial services provider’s stock valued at $3,437,330,000 after buying an additional 31,272,429 shares in the last quarter. Vanguard Group Inc. boosted its position in Prudential Financial by 3.3% in the first quarter. Vanguard Group Inc. now owns 30,272,486 shares of the financial services provider’s stock valued at $3,229,469,000 after buying an additional 968,500 shares in the last quarter. Old Mutual Global Investors UK Ltd. boosted its position in Prudential Financial by 971,689.7% in the first quarter. Old Mutual Global Investors UK Ltd. now owns 942,636 shares of the financial services provider’s stock valued at $100,560,000 after buying an additional 942,539 shares in the last quarter. Acadian Asset Management LLC boosted its position in Prudential Financial by 2,179.5% in the second quarter. Acadian Asset Management LLC now owns 730,899 shares of the financial services provider’s stock valued at $79,040,000 after buying an additional 698,835 shares in the last quarter. Finally, Bank of Montreal Can boosted its position in Prudential Financial by 85.2% in the second quarter. Bank of Montreal Can now owns 1,452,721 shares of the financial services provider’s stock valued at $157,097,000 after buying an additional 668,233 shares in the last quarter. Hedge funds and other institutional investors own 63.54% of the company’s stock.
About Prudential Financial
Prudential Financial, Inc, is a financial services company. The Company, through its subsidiaries, offers a range of financial products and services, which includes life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s operations consists of four divisions, which together encompass seven segments.
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