Prudential Financial (NYSE:PRU) Stock Price Target Lowered at TD Cowen

Key Points

• TD Cowen lowered Prudential Financial’s price target from $114 to $112 and maintained a “hold” rating, implying about 3% downside from the referenced $115.46 share price.
• Analyst sentiment is broadly cautious: PRU has one Buy, ten Hold and five Sell ratings, with a consensus rating of “Reduce” and an average target price of $107.15. Barclays and Morgan Stanley also recently cut their targets and retained “underweight” ratings.
• Prudential’s latest quarterly results beat expectations, with EPS of $4.08 versus the $3.52 consensus, although revenue came in slightly below estimates. Institutional investors own 56.83% of the stock, while recent insider activity included executive and major-shareholder selling.

Prudential Financial (NYSE:PRU - Get Free Report) had its price target decreased by equities research analysts at TD Cowen from $114.00 to $112.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has a "hold" rating on the financial services provider's stock. TD Cowen's price target would indicate a potential downside of 3.00% from the stock's current price.

Several other research firms also recently issued reports on PRU. Keefe, Bruyette & Woods dropped their price objective on Prudential Financial from $123.00 to $119.00 and set a "market perform" rating on the stock in a report on Friday. Barclays cut their price objective on Prudential Financial from $96.00 to $94.00 and set an "underweight" rating on the stock in a research note on Monday. Morgan Stanley reduced their target price on Prudential Financial from $105.00 to $100.00 and set an "underweight" rating on the stock in a report on Monday. Wells Fargo & Company dropped their target price on shares of Prudential Financial from $110.00 to $104.00 and set an "underweight" rating on the stock in a report on Monday, October 12th. Finally, Jefferies Financial Group lifted their price target on shares of Prudential Financial from $105.00 to $110.00 and gave the company a "hold" rating in a report on Friday, July 10th. 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 company. According to data from MarketBeat.com, Prudential Financial currently has an average rating of "Reduce" and a consensus target price of $107.15.

Prudential Financial Stock Performance

Prudential Financial stock opened at $115.46 on Wednesday. The firm has a market capitalization of $39.83 billion, a PE ratio of 10.47, a price-to-earnings-growth ratio of 1.70 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 stock's 50 day moving average price is $118.14 and its 200 day moving average price is $111.13. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.16 and a current ratio of 0.16.

Prudential Financial (NYSE:PRU - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.52 by $0.56. The company had revenue of $14.15 billion during the quarter, compared to the consensus estimate of $14.36 billion. Prudential Financial had a net margin of 6.51% and a return on equity of 16.68%. During the same quarter last year, the company earned $3.58 earnings per share. As a group, sell-side analysts expect that Prudential Financial will post 14.47 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Ann M. Kappler sold 7,652 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $125.01, for a total transaction of $956,576.52. Following the completion of the sale, 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of the firm's 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 $197,348,010.75. The trade was a 2.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PRU. Integrated Advisors Network LLC raised its holdings in Prudential Financial by 10.7% during the third quarter. Integrated Advisors Network LLC now owns 6,725 shares of the financial services provider's stock valued at $764,000 after buying an additional 652 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its holdings in shares of Prudential Financial by 266.2% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 485,344 shares of the financial services provider's stock valued at $55,125,000 after acquiring an additional 352,793 shares during the last quarter. MBM Wealth Consultants LLC increased its holdings in shares of Prudential Financial by 17.1% during the 3rd quarter. MBM Wealth Consultants LLC now owns 6,004 shares of the financial services provider's stock valued at $682,000 after acquiring an additional 877 shares during the last quarter. Prime Capital Investment Advisors LLC raised its stake in shares of Prudential Financial by 4.0% in the 3rd quarter. Prime Capital Investment Advisors LLC now owns 5,261 shares of the financial services provider's stock valued at $598,000 after acquiring an additional 203 shares in the last quarter. Finally, Investment Research Partners LLC raised its stake in shares of Prudential Financial by 8.8% in the 3rd quarter. Investment Research Partners LLC now owns 7,572 shares of the financial services provider's stock valued at $860,000 after acquiring an additional 612 shares in the last quarter. Institutional investors own 56.83% of the company's stock.

Key Prudential Financial News

Here are the key news stories impacting Prudential Financial this week:

• Positive Sentiment: Prudential agreed to sell its Brazil and Mexico businesses to CNP Assurances for approximately $4.025 billion in cash. The transaction narrows PRU’s exposure to emerging markets and could provide substantial liquidity for debt reduction, capital returns or investment in its core businesses, although final proceeds remain subject to closing adjustments. Prudential Financial to sell Brazil and Mexico units for $4 billion
• Positive Sentiment: The divestitures reinforce management’s effort to simplify Prudential’s portfolio and concentrate on its higher-priority businesses. Investors may view the cash sale as favorable if proceeds are deployed effectively. Prudential Financial announces sale of Prudential of Brazil and Prudential of Mexico
• Neutral Sentiment: Prudential Wealth Advisors plans to accelerate recruiting through a new centralized operating model. The initiative could support longer-term distribution and asset-gathering growth, but its financial impact is not yet clear. Prudential Wealth Advisors set to ramp up recruiting with new centralized model
• Neutral Sentiment: Prudential Life Insurance Ghana introduced PRUConnect, a digital platform intended to give customers more control over insurance services. The product may improve customer engagement, but it is unlikely to materially affect near-term valuation for the parent company. Prudential Life Insurance Ghana introduces PRUConnect
• Negative Sentiment: Barclays lowered its price target for PRU from $96 to $94 and maintained an “underweight” rating. The new target implies significant downside from the referenced share price, signaling concerns about the company’s outlook. Barclays Has Lowered Expectations for Prudential Financial Stock Price
• Negative Sentiment: Morgan Stanley cut its target from $105 to $100 and also rated the stock “underweight.” The back-to-back target reductions may reinforce near-term selling pressure despite PRU’s low valuation and recent earnings outperformance. Prudential Financial Stock Price Target Cut by Morgan Stanley

Prudential Financial Company Profile

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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