Bank of America Issues Pessimistic Forecast for Prudential Financial (NYSE:PRU) Stock Price

Key Points

• Bank of America cut its price target on Prudential Financial from $112 to $104 and kept a "neutral" rating, part of a string of analyst downgrades that leave the stock with an average rating of Reduce and an average price target of $108.
• Shares traded around $98.83 (12-month range $91.89–$119.76) with a market cap of $34.37 billion and a P/E of 9.88, and the company recently missed quarterly EPS by $0.07.
• Despite analyst pessimism, insiders bought shares in February and institutional investors own about 56.8% of the company, indicating some insider and institutional confidence.

Prudential Financial (NYSE:PRU - Get Free Report) had its price target dropped by stock analysts at Bank of America from $112.00 to $104.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the financial services provider's stock. Bank of America's price target suggests a potential upside of 5.24% from the company's previous close.

A number of other analysts have also recently weighed in on PRU. Keefe, Bruyette & Woods decreased their price target on shares of Prudential Financial from $106.00 to $104.00 and set a "market perform" rating for the company in a research report on Friday. Evercore reaffirmed a "negative" rating on shares of Prudential Financial in a research report on Friday, March 6th. Wells Fargo & Company decreased their price target on shares of Prudential Financial from $103.00 to $95.00 and set an "underweight" rating for the company in a research report on Friday. Wall Street Zen cut shares of Prudential Financial from a "buy" rating to a "hold" rating in a research report on Saturday, January 10th. Finally, Weiss Ratings cut shares of Prudential Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, March 13th. Ten equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and an average price target of $108.00.

Prudential Financial Trading Up 0.4%

Shares of NYSE:PRU traded up $0.35 during trading on Tuesday, reaching $98.83. 842,007 shares of the stock were exchanged, compared to its average volume of 2,291,467. The firm's 50-day moving average price is $98.50 and its 200 day moving average price is $105.07. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.16 and a current ratio of 0.16. Prudential Financial has a 12-month low of $91.89 and a 12-month high of $119.76. The firm has a market cap of $34.37 billion, a price-to-earnings ratio of 9.88, a price-to-earnings-growth ratio of 1.20 and a beta of 0.95.

Prudential Financial (NYSE:PRU - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The financial services provider reported $3.30 earnings per share for the quarter, missing analysts' consensus estimates of $3.37 by ($0.07). Prudential Financial had a return on equity of 16.32% and a net margin of 6.20%.The business had revenue of $14.52 billion for the quarter, compared to analysts' expectations of $14.48 billion. During the same period last year, the company posted $2.96 earnings per share. On average, sell-side analysts anticipate that Prudential Financial will post 14.36 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Joseph J. Wolk bought 400 shares of the business's stock in a transaction dated Wednesday, February 11th. The shares were acquired at an average price of $105.32 per share, for a total transaction of $42,128.00. Following the purchase, the director owned 400 shares in the company, valued at $42,128. This trade represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Jacques Chappuis bought 1,000 shares of the business's stock in a transaction dated Friday, February 6th. The stock was bought at an average price of $100.97 per share, for a total transaction of $100,970.00. Following the purchase, the executive vice president owned 1,000 shares in the company, valued at approximately $100,970. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders purchased 1,408,389 shares of company stock valued at $35,154,439. Corporate insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Prudential Financial

A number of institutional investors have recently modified their holdings of the stock. Rockefeller Capital Management L.P. raised its stake in shares of Prudential Financial by 44.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 268,830 shares of the financial services provider's stock valued at $30,346,000 after purchasing an additional 82,173 shares in the last quarter. Fund Advisors of America Inc FL acquired a new stake in shares of Prudential Financial in the 4th quarter valued at about $381,000. World Investment Advisors raised its stake in shares of Prudential Financial by 104.6% in the 4th quarter. World Investment Advisors now owns 12,164 shares of the financial services provider's stock valued at $1,373,000 after purchasing an additional 6,220 shares in the last quarter. Nalls Sherbakoff Group LLC acquired a new stake in shares of Prudential Financial in the 4th quarter valued at about $44,000. Finally, Corient Private Wealth LLC raised its stake in shares of Prudential Financial by 8.8% in the 4th quarter. Corient Private Wealth LLC now owns 81,386 shares of the financial services provider's stock valued at $9,189,000 after purchasing an additional 6,585 shares in the last quarter. Institutional investors and hedge funds own 56.83% of the company's stock.

Prudential Financial Company Profile

Prudential Financial, Inc, headquartered in Newark, New Jersey, is a diversified financial services company with roots dating to 1875. The firm provides a range of insurance, retirement and investment products aimed at helping individual and institutional clients manage risk, accumulate and protect wealth, and plan for retirement. Prudential's long history in life insurance and related financial services has positioned it as a major participant in the U.S. insurance market and a provider of services to a broad client base.

Prudential's core business activities include individual life insurance, annuities, retirement solutions and group insurance products for employers.

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