Barclays Issues Pessimistic Forecast for Prudential Financial (NYSE:PRU) Stock Price

Key Points

• Barclays lowered its price target for Prudential Financial from $96 to $94 and maintained an “underweight” rating, implying roughly 17% downside from the stock’s reported price.
• Analyst sentiment remains cautious: Prudential has a consensus “Reduce” rating, with one Buy, ten Hold, and five Sell ratings; the average target price is $107.31.
• PRU shares fell 2% to $113.58, despite the company reporting quarterly EPS of $4.08, above the $3.52 analyst estimate. Recent insider transactions included stock sales by a major shareholder and an executive.

Prudential Financial (NYSE:PRU - Get Free Report) had its price objective dropped by Barclays from $96.00 to $94.00 in a report released on Monday, Benzinga reports. The firm currently has an "underweight" rating on the financial services provider's stock. Barclays's price objective would suggest a potential downside of 17.24% from the stock's current price.

Several other equities analysts also recently commented on PRU. Mizuho set a $108.00 price target on Prudential Financial in a report on Monday, October 12th. Jefferies Financial Group lifted their price objective on Prudential Financial from $105.00 to $110.00 and gave the stock a "hold" rating in a research note on Friday, July 10th. TD Cowen increased their target price on Prudential Financial from $102.00 to $114.00 and gave the company a "hold" rating in a research note on Wednesday, July 22nd. Keefe, Bruyette & Woods lowered their target price on Prudential Financial from $123.00 to $119.00 and set a "market perform" rating on the stock in a report on Friday. Finally, Wall Street Zen downgraded Prudential Financial from a "buy" rating to a "hold" rating in a research report on Monday, September 28th. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $107.31.

Prudential Financial Stock Down 2.0%

NYSE:PRU traded down $2.33 during trading hours on Monday, reaching $113.58. The company's stock had a trading volume of 783,680 shares, compared to its average volume of 2,016,666. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.16 and a quick ratio of 0.16. The company has a market cap of $39.19 billion, a price-to-earnings ratio of 10.29, a price-to-earnings-growth ratio of 1.72 and a beta of 0.85. Prudential Financial has a one year low of $91.89 and a one year high of $127.72. The business's 50-day moving average is $118.45 and its 200-day moving average is $110.90.

Prudential Financial (NYSE:PRU - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share for the quarter, topping analysts' consensus estimates of $3.52 by $0.56. Prudential Financial had a return on equity of 16.68% and a net margin of 6.51%. The company had revenue of $14.15 billion during the quarter, compared to analysts' expectations of $14.36 billion. During the same quarter in the previous year, the firm earned $3.58 earnings per share. Equities research analysts predict that Prudential Financial will post 14.47 EPS for the current year.

Insider Activity

In other news, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $24.75, for a total transaction of $5,314,963.50. Following the sale, the insider owned 7,973,657 shares of the company's stock, valued at approximately $197,348,010.75. This trade represents a 2.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Ann Kappler sold 7,652 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $125.01, for a total value of $956,576.52. Following the completion of the transaction, the executive vice president owned 14,407 shares of the company's stock, valued at $1,801,019.07. The trade was a 34.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.05% of the company's stock.

Institutional Trading of Prudential Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Prairie Advisory LLC bought a new stake in shares of Prudential Financial during the 3rd quarter worth approximately $412,000. Optivise Advisory Services LLC increased its stake in shares of Prudential Financial by 4.6% during the 3rd quarter. Optivise Advisory Services LLC now owns 3,765 shares of the financial services provider's stock worth $428,000 after purchasing an additional 164 shares during the last quarter. V Square Quantitative Management LLC lifted its stake in Prudential Financial by 1.8% in the 3rd quarter. V Square Quantitative Management LLC now owns 9,269 shares of the financial services provider's stock valued at $1,053,000 after purchasing an additional 165 shares during the last quarter. Moody National Bank Trust Division lifted its position in shares of Prudential Financial by 8.8% in the third quarter. Moody National Bank Trust Division now owns 7,042 shares of the financial services provider's stock valued at $800,000 after buying an additional 568 shares during the last quarter. Finally, QRG Capital Management Inc. raised its position in shares of Prudential Financial by 17.2% in the second quarter. QRG Capital Management Inc. now owns 40,530 shares of the financial services provider's stock valued at $4,374,000 after purchasing an additional 5,949 shares during the period. Institutional investors own 56.83% of the company's stock.

About Prudential Financial

Prudential Financial, Inc NYSE: PRU is a global financial services company that provides insurance, retirement, investment management and related financial products. Founded in Newark, New Jersey, in 1875, the company serves individuals, businesses and institutional investors through a range of businesses and distribution channels.

In the United States, Prudential offers life insurance, annuities, retirement plans and employee benefits, including group life, disability and dental insurance.

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