Principal Financial Group, Inc. (NASDAQ:PFG) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Analyst sentiment is mixed: Twelve analysts give Principal Financial Group an average “Hold” rating, with three sells, six holds, and three buys. The average 12-month price target is $107.75, below the reported share price of $113.65.
• Third-quarter results were mixed: Revenue of $4.62 billion exceeded expectations, but adjusted earnings of $2.22 per share missed the $2.46 consensus estimate. Analysts cited resilient earnings power alongside concerns about asset outflows and lowered some future EPS forecasts.
• The dividend increased: Principal raised its quarterly dividend from $0.84 to $0.85 per share, equivalent to $3.40 annually and a 3.0% yield.

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) has received an average rating of "Hold" from the twelve analysts that are currently covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation, six have given a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $107.75.

Several equities analysts have recently weighed in on the company. Bank of America increased their price target on Principal Financial Group from $94.00 to $104.00 and gave the company an "underperform" rating in a report on Tuesday, July 28th. Keefe, Bruyette & Woods reduced their price objective on Principal Financial Group from $117.00 to $115.00 and set a "market perform" rating for the company in a research report on Friday, October 9th. Raymond James Financial reissued an "outperform" rating and issued a $121.00 target price on shares of Principal Financial Group in a report on Monday, August 17th. Piper Sandler dropped their target price on Principal Financial Group from $128.00 to $125.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, Atlantic Securities set a $94.00 price target on Principal Financial Group in a research note on Wednesday, July 15th.

Key Headlines Impacting Principal Financial Group

Here are the key news stories impacting Principal Financial Group this week:

• Positive Sentiment: Third-quarter profit increased, while revenue of $4.62 billion exceeded the $4.31 billion analyst estimate. The results suggest continued operating strength despite pressure from asset outflows. Principal Financial Group Q3 Profit Rises
• Positive Sentiment: Piper Sandler maintained an “overweight” rating, although it reduced its price target from $128 to $125. The revised target still implies meaningful upside from recent trading levels, providing support for the stock. Piper Sandler Stock Recommendations
• Positive Sentiment: Coverage indicates that Principal’s earnings power remains resilient even as the company experiences asset outflows, a constructive signal for retirement and investment-management operations. Principal Financial Group Q3 Earnings Power Through Asset Outflows
• Neutral Sentiment: Analyst opinions remain mixed, with some investors emphasizing the company’s earnings resilience while others remain concerned about flows and the outlook for financial stocks. Analysts Conflicted on Principal Financial
• Negative Sentiment: Quarterly adjusted earnings of $2.22 per share fell short of the $2.46 consensus estimate, which could limit near-term enthusiasm despite the revenue beat.
• Negative Sentiment: Dowling & Partners lowered its EPS forecasts to $9.13 for fiscal 2026, $10.20 for fiscal 2027 and $11.20 for fiscal 2028. Each estimate is below its prior forecast, signaling more cautious expectations for Principal Financial Group’s future earnings.

Institutional Trading of Principal Financial Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PFG. Ancora Advisors LLC bought a new stake in shares of Principal Financial Group during the 2nd quarter valued at $27,000. Valley Wealth Managers Inc. purchased a new position in Principal Financial Group during the first quarter valued at $27,000. Bell Investment Advisors Inc bought a new stake in Principal Financial Group during the second quarter valued at about $38,000. Signature Equity Partners LLC grew its holdings in Principal Financial Group by 5,733.3% during the first quarter. Signature Equity Partners LLC now owns 350 shares of the company's stock valued at $32,000 after purchasing an additional 344 shares during the period. Finally, Comprehensive Financial Planning Inc. PA bought a new stake in Principal Financial Group during the second quarter valued at about $41,000. 75.08% of the stock is owned by hedge funds and other institutional investors.

Principal Financial Group Trading Up 1.6%

Shares of NASDAQ:PFG opened at $113.65 on Friday. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.24 and a quick ratio of 0.28. Principal Financial Group has a 1 year low of $80.00 and a 1 year high of $121.18. The company has a market cap of $24.33 billion, a P/E ratio of 12.63, a PEG ratio of 1.27 and a beta of 0.86. The stock's fifty day moving average price is $112.13 and its 200-day moving average price is $103.36.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $2.22 EPS for the quarter, missing the consensus estimate of $2.46 by ($0.24). Principal Financial Group had a return on equity of 16.51% and a net margin of 11.89%. The business had revenue of $4.62 billion during the quarter, compared to the consensus estimate of $4.31 billion. During the same quarter in the previous year, the business posted $2.32 earnings per share. Sell-side analysts expect that Principal Financial Group will post 9.27 earnings per share for the current year.

Principal Financial Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Wednesday, December 2nd will be issued a $0.85 dividend. The ex-dividend date of this dividend is Wednesday, December 2nd. This is a positive change from Principal Financial Group's previous quarterly dividend of $0.84. This represents a $3.40 dividend on an annualized basis and a dividend yield of 3.0%. Principal Financial Group's payout ratio is 37.33%.

About Principal Financial Group

Principal Financial Group, Inc is a global financial services company that helps individuals and businesses build, protect and manage wealth. Its offerings include retirement plans, individual retirement accounts, investment products, life and disability insurance, and financial wellness solutions. The company also provides institutional investment management and pension-risk transfer services.

Principal serves employers, institutions and individual investors through a range of retirement and workplace benefits solutions.

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