BMO Capital Markets Lowers Prudential Financial (NYSE:PRU) Price Target to $87.00

Key Points

• BMO Capital Markets cut its price target on Prudential Financial to $87 (from $91) and maintained an underperform rating, implying about an 8.2% downside from the current share price.
• Prudential extended a voluntary suspension of new sales in Japan, which management says will hit 2026 pre-tax adjusted operating income by roughly $525M–$575M, and ongoing reports of a probe into the Japan unit have increased uncertainty and pressure on near-term results.
• Multiple analysts have trimmed ratings and targets, leaving the stock with a consensus rating of "Reduce" (average price target ~$102.08) driven by a cluster of downgrades and reduced analyst support.

Prudential Financial (NYSE:PRU - Get Free Report) had its price objective cut by research analysts at BMO Capital Markets from $91.00 to $87.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has an "underperform" rating on the financial services provider's stock. BMO Capital Markets' price objective points to a potential downside of 8.20% from the stock's current price.

Several other analysts have also recently commented on the company. Keefe, Bruyette & Woods reduced their price target on Prudential Financial from $106.00 to $104.00 and set a "market perform" rating for the company in a report on Friday, April 10th. UBS Group lowered their price target on shares of Prudential Financial from $105.00 to $98.00 and set a "neutral" rating on the stock in a research note on Thursday, April 9th. Weiss Ratings cut shares of Prudential Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 13th. Mizuho lowered their target price on shares of Prudential Financial from $113.00 to $101.00 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Finally, Evercore reissued a "negative" rating on shares of Prudential Financial in a research note on Friday, March 6th. Ten equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $102.08.

Prudential Financial Stock Performance

Shares of Prudential Financial stock opened at $94.77 on Thursday. The business's 50 day moving average price is $97.93 and its 200 day moving average price is $104.85. The company has a market cap of $32.96 billion, a price-to-earnings ratio of 9.48, a PEG ratio of 1.24 and a beta of 0.95. Prudential Financial has a one year low of $91.89 and a one year high of $119.76. 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 (NYSE:PRU - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The financial services provider reported $3.30 EPS for the quarter, missing the consensus estimate of $3.37 by ($0.07). Prudential Financial had a net margin of 6.20% and a return on equity of 16.32%. The company had revenue of $14.52 billion for the quarter, compared to analysts' expectations of $14.48 billion. During the same period in the prior year, the company earned $2.96 earnings per share. On average, research analysts predict that Prudential Financial will post 14.03 EPS for the current year.

Insider Buying and Selling

In other Prudential Financial news, major shareholder Insurance Co Of Ame Prudential bought 1,406,739 shares of the stock in a transaction dated Friday, January 23rd. The stock was bought at an average cost of $24.87 per share, for a total transaction of $34,985,598.93. Following the completion of the purchase, the insider directly owned 7,709,624 shares of the company's stock, valued at approximately $191,738,348.88. The trade was a 22.32% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Thomas D. Stoddard bought 250 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were acquired at an average cost of $102.97 per share, for a total transaction of $25,742.50. Following the completion of the transaction, the director owned 250 shares of the company's stock, valued at approximately $25,742.50. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 1,408,389 shares of company stock worth $35,154,439 in the last 90 days. 0.05% of the stock is owned by insiders.

Institutional Investors Weigh In On Prudential Financial

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Sunflower Bank N.A. lifted its holdings in Prudential Financial by 3.2% during the 4th quarter. Sunflower Bank N.A. now owns 2,911 shares of the financial services provider's stock worth $329,000 after buying an additional 91 shares during the last quarter. Wetzel Investment Advisors Inc. raised its position in shares of Prudential Financial by 0.9% during the 4th quarter. Wetzel Investment Advisors Inc. now owns 10,022 shares of the financial services provider's stock valued at $1,131,000 after acquiring an additional 94 shares in the last quarter. CIBC Private Wealth Group LLC lifted its stake in Prudential Financial by 0.3% during the third quarter. CIBC Private Wealth Group LLC now owns 28,795 shares of the financial services provider's stock worth $2,987,000 after purchasing an additional 97 shares during the last quarter. Transcend Capital Advisors LLC boosted its holdings in Prudential Financial by 2.4% in the fourth quarter. Transcend Capital Advisors LLC now owns 4,175 shares of the financial services provider's stock worth $471,000 after purchasing an additional 98 shares during the period. Finally, Mindset Wealth Management LLC grew its position in shares of Prudential Financial by 2.1% during the 3rd quarter. Mindset Wealth Management LLC now owns 4,781 shares of the financial services provider's stock valued at $496,000 after buying an additional 100 shares during the last quarter. 56.83% of the stock is currently owned by hedge funds and other institutional investors.

Key Prudential Financial News

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

• Positive Sentiment: Prudential stresses Japan remains a core market and is taking proactive, company-led remediation (governance, compensation and sales oversight) before resuming new sales — a move management says is intended to limit regulatory and reputational tail risk over the long run. Prudential of Japan Extends Voluntary Sales Suspension
• Neutral Sentiment: CVC Capital-led group emerges as frontrunner in a Standard Life pensions deal — a sector M&A item that appears unrelated to Prudential’s situation but could shift competitive dynamics in UK pensions over time. CVC Capital-Led Group Emerges as Frontrunner in Standard Life
• Neutral Sentiment: Piper Sandler trimmed its price target to $99 and now has a "neutral" rating — a modest analyst recalibration that signals reduced near-term upside but not a sell stance. Piper Sandler lowers PT
• Negative Sentiment: Prudential extended its voluntary suspension of new sales in Japan by an additional 180 days; management now expects a roughly $525M–$575M hit to 2026 pre-tax adjusted operating income from the pause. This is the principal near-term earnings driver pressuring the stock. Prudential Extends Suspension of New Business In Japan
• Negative Sentiment: Several firms cut ratings/targets: Jefferies downgraded PRU from Buy to Hold (PT $98) and Barclays moved to Underweight (PT $91). The cluster of downgrades increases selling pressure and reduces analyst support. Analyst downgrades and PT cuts
• Negative Sentiment: Media reports of a probe into Prudential’s Japan unit (employee misconduct allegations) continue to feed uncertainty around timing to restart sales and potential remediation costs — amplifying investor caution. Prudential Extends Japan Life Sales Pause, Pulls Growth Target

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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