Primerica, Inc. (NYSE:PRI) Shareholders to Collect $1.20 Quarterly Dividend

Key Points

• Primerica declared a quarterly dividend of $1.20 per share, payable December 14 to shareholders of record November 20. That equals $4.80 annually, a 1.7% yield.
• The dividend appears well covered: its current payout ratio is 21.1%, and analysts expect a 17.6% payout ratio based on next year’s projected earnings. Primerica has raised its dividend for two consecutive years.
• Primerica reported quarterly EPS of $6.77, beating analyst expectations of $6.40; revenue of $901.82 million also slightly exceeded estimates.

Primerica, Inc. (NYSE:PRI - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Investors of record on Friday, November 20th will be given a dividend of $1.20 per share by the financial services provider on Monday, December 14th. This represents a $4.80 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, November 20th.

Primerica has raised its dividend payment by an average of 0.2% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Primerica has a dividend payout ratio of 21.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Primerica to earn $27.22 per share next year, which means the company should continue to be able to cover its $4.80 annual dividend with an expected future payout ratio of 17.6%.

Primerica Stock Up 1.5%

Shares of PRI opened at $284.44 on Thursday. The firm has a 50-day moving average price of $283.25 and a 200 day moving average price of $278.77. The firm has a market capitalization of $8.75 billion, a PE ratio of 11.42 and a beta of 0.86. Primerica has a 52-week low of $230.09 and a 52-week high of $327.28.

Primerica (NYSE:PRI - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The financial services provider reported $6.77 EPS for the quarter, topping analysts' consensus estimates of $6.40 by $0.37. The company had revenue of $901.82 million for the quarter, compared to the consensus estimate of $901.00 million. Primerica had a net margin of 23.20% and a return on equity of 32.45%. During the same period in the previous year, the firm earned $6.33 EPS. On average, equities analysts expect that Primerica will post 25.22 EPS for the current year.

Insider Transactions at Primerica

In related news, CEO Glenn J. Williams sold 1,500 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $320.20, for a total transaction of $480,300.00. Following the completion of the sale, the chief executive officer directly owned 32,196 shares of the company's stock, valued at $10,309,159.20. This represents a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amber Cottle sold 279 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $313.63, for a total transaction of $87,502.77. Following the sale, the director owned 3,549 shares of the company's stock, valued at $1,113,072.87. The trade was a 7.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 3,579 shares of company stock valued at $1,130,573 in the last quarter. Insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Ameritas Advisory Services LLC acquired a new position in shares of Primerica in the second quarter worth $26,000. C M Bidwell & Associates Ltd. acquired a new stake in Primerica during the second quarter valued at $29,000. Ashurst Perkins Coie Trust Co acquired a new stake in Primerica during the third quarter valued at $42,000. Pension & Wealth Management Advisors Inc. purchased a new position in Primerica in the third quarter valued at about $43,000. Finally, Root Financial Partners LLC grew its stake in Primerica by 52.6% in the first quarter. Root Financial Partners LLC now owns 177 shares of the financial services provider's stock valued at $44,000 after purchasing an additional 61 shares in the last quarter. Institutional investors own 90.88% of the company's stock.

About Primerica

Primerica, Inc is a financial services company that focuses on serving middle-income households in the United States and Canada, as well as families in Puerto Rico. The company distributes its products and services through a network of independent representatives who provide financial education and help clients address protection, savings and investment needs.

Primerica's principal offerings include term life insurance, investment and savings products, retirement planning solutions, and strategies for managing debt.

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