Principal Financial Group, Inc. (NASDAQ:PFG) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold”: Of 13 covering firms, seven rate Principal Financial Group neutral, while three recommend selling and three recommend buying. The average 12-month price target is $106.67, below the reported share price of $114.02.
• Principal Financial Group exceeded quarterly EPS expectations, reporting $2.50 versus the $2.33 consensus, although revenue of $3.99 billion fell short of estimates. Analysts project full-year EPS of $9.62.
• The company raised its quarterly dividend to $0.84 per share, or $3.36 annually, implying a 2.9% yield. Institutional investors own 75.08% of the stock.

Shares of Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) have received an average recommendation of "Hold" from the thirteen ratings firms that are covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $106.6667.

PFG has been the topic of several analyst reports. Barclays increased their price objective on Principal Financial Group from $87.00 to $92.00 and gave the company an "underweight" rating in a research note on Tuesday, July 7th. Citigroup downgraded Principal Financial Group from a "sell" rating to an "underperform" rating in a report on Wednesday, June 24th. Wells Fargo & Company reduced their price target on Principal Financial Group from $114.00 to $113.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 22nd. Jefferies Financial Group lifted their price objective on Principal Financial Group from $91.00 to $98.00 and gave the company a "hold" rating in a research note on Friday, July 10th. Finally, Atlantic Securities set a $94.00 price objective on Principal Financial Group in a research report on Wednesday, July 15th.

Principal Financial Group Trading Down 0.9%

Shares of PFG stock opened at $114.02 on Thursday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.28 and a current ratio of 0.28. The stock has a market capitalization of $24.41 billion, a P/E ratio of 16.20, a price-to-earnings-growth ratio of 1.04 and a beta of 0.86. The company has a 50 day moving average price of $112.70 and a 200 day moving average price of $103.32. Principal Financial Group has a fifty-two week low of $77.90 and a fifty-two week high of $121.18.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last released its earnings results on Monday, July 27th. The company reported $2.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.33 by $0.17. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $4.11 billion. Principal Financial Group had a net margin of 9.93% and a return on equity of 16.49%. During the same period in the prior year, the business earned $2.16 EPS. Equities research analysts predict that Principal Financial Group will post 9.62 EPS for the current fiscal year.

Principal Financial Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Thursday, September 3rd will be paid a $0.84 dividend. This is an increase from Principal Financial Group's previous quarterly dividend of $0.82. This represents a $3.36 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Thursday, September 3rd. Principal Financial Group's payout ratio is presently 47.73%.

Institutional Investors Weigh In On Principal Financial Group

Large investors have recently modified their holdings of the company. California State Teachers Retirement System lifted its position in shares of Principal Financial Group by 9,526.5% during the 2nd quarter. California State Teachers Retirement System now owns 38,301,347 shares of the company's stock worth $4,128,119,000 after purchasing an additional 37,903,473 shares during the last quarter. BlackRock Inc. purchased a new position in Principal Financial Group in the second quarter valued at $2,157,181,000. Bank of America Corp DE raised its stake in Principal Financial Group by 9.6% in the second quarter. Bank of America Corp DE now owns 12,370,852 shares of the company's stock valued at $982,617,000 after buying an additional 1,083,991 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Principal Financial Group by 3.2% in the first quarter. Dimensional Fund Advisors LP now owns 3,886,509 shares of the company's stock valued at $350,187,000 after buying an additional 119,327 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in Principal Financial Group by 23.2% during the 3rd quarter. Invesco Ltd. now owns 3,376,797 shares of the company's stock worth $279,970,000 after buying an additional 636,334 shares during the last quarter. 75.08% of the stock is owned by hedge funds and other institutional investors.

Principal Financial Group Company Profile

Principal Financial Group, Inc is a global financial services company headquartered in Des Moines, Iowa. Founded in 1879, the company provides investment management, retirement, insurance and financial wellness solutions to businesses, individuals and institutional investors.

Principal offers employer-sponsored retirement plans, including defined contribution and defined benefit programs, as well as pension risk transfer solutions. Its insurance products and services include group benefits, individual life insurance and disability insurance.

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