Prudential Financial (NYSE:PRU) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Prudential Financial from “Buy” to “Hold.” The broader analyst consensus is “Reduce,” with 11 Hold, five Sell, and one Buy rating and an average price target of $109.31.
• Prudential reported quarterly earnings of $4.08 per share, surpassing the $3.52 consensus estimate, while revenue of $14.15 billion fell short of expectations.
• PRU shares opened at $119.18, near their 52-week high of $127.72. Recent insider transactions included stock sales by a major shareholder and an executive, while institutional investors own 56.83% of the company.

Prudential Financial (NYSE:PRU - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also commented on the stock. Mizuho upped their price objective on shares of Prudential Financial from $101.00 to $109.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Barclays boosted their target price on shares of Prudential Financial from $90.00 to $92.00 and gave the company an "underweight" rating in a report on Tuesday, July 7th. TD Cowen upped their price target on shares of Prudential Financial from $102.00 to $114.00 and gave the company a "hold" rating in a research report on Wednesday, July 22nd. Jefferies Financial Group increased their price target on Prudential Financial from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Friday, July 10th. Finally, Argus lowered Prudential Financial from a "buy" rating to a "hold" rating in a research report on Tuesday, June 9th. One analyst has rated the stock with a Buy rating, eleven have given a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Prudential Financial currently has an average rating of "Reduce" and a consensus target price of $109.31.

Prudential Financial Price Performance

Shares of PRU opened at $119.18 on Friday. The business has a 50-day moving average of $120.03 and a 200-day moving average of $107.38. 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 capitalization of $41.12 billion, a price-to-earnings ratio of 10.80, a price-to-earnings-growth ratio of 1.78 and a beta of 0.83. Prudential Financial has a 1 year low of $91.89 and a 1 year high of $127.72.

Prudential Financial (NYSE:PRU - Get Free Report) last announced its earnings results on Tuesday, August 4th. The financial services provider reported $4.08 EPS for the quarter, beating the consensus estimate of $3.52 by $0.56. Prudential Financial had a return on equity of 16.68% and a net margin of 6.51%.The business had revenue of $14.15 billion for the quarter, compared to analysts' expectations of $14.36 billion. During the same period in the prior year, the business posted $3.58 earnings per share. As a group, equities research analysts anticipate that Prudential Financial will post 14.51 earnings per share for the current year.

Insider Buying and Selling at Prudential Financial

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

Institutional Investors Weigh In On Prudential Financial

Several hedge funds and other institutional investors have recently modified their holdings of PRU. Brighton Jones LLC increased its stake in Prudential Financial by 3.7% during the 4th quarter. Brighton Jones LLC now owns 3,681 shares of the financial services provider's stock valued at $436,000 after purchasing an additional 133 shares in the last quarter. Empowered Funds LLC lifted its stake in shares of Prudential Financial by 30.5% in the first quarter. Empowered Funds LLC now owns 17,690 shares of the financial services provider's stock valued at $1,976,000 after buying an additional 4,134 shares in the last quarter. Brown Advisory Inc. grew its holdings in shares of Prudential Financial by 3.5% during the second quarter. Brown Advisory Inc. now owns 4,164 shares of the financial services provider's stock valued at $447,000 after buying an additional 140 shares during the last quarter. AXA S.A. grew its holdings in shares of Prudential Financial by 25.8% during the second quarter. AXA S.A. now owns 56,700 shares of the financial services provider's stock valued at $6,092,000 after buying an additional 11,630 shares during the last quarter. Finally, NewEdge Advisors LLC increased its position in shares of Prudential Financial by 15.1% during the second quarter. NewEdge Advisors LLC now owns 37,277 shares of the financial services provider's stock worth $4,005,000 after acquiring an additional 4,895 shares in the last quarter. Institutional investors own 56.83% of the company's stock.

Prudential Financial Company Profile

Prudential Financial, Inc is a global financial services company headquartered in Newark, New Jersey. Founded in 1875 as The Widows and Orphans Friendly Society, the company has grown from a life insurance provider into a diversified business offering insurance, retirement, investment management and related financial services.

Through its U.S. businesses, Prudential provides individual life insurance and annuities, workplace retirement plans, pension risk transfer solutions, group life and disability insurance, and other benefits and financial wellness products.

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