DOWLING & PARTN Has Bearish Forecast for PRU FY2026 Earnings

Key Points

• DOWLING & PARTN lowered Prudential Financial’s FY2026 EPS forecast to $14.65 from $14.90, though it remains above the $14.50 consensus estimate. The firm projects EPS of $14.60 for FY2027 and $16.15 for FY2028.
• Analyst sentiment remains cautious: Prudential has a consensus “Reduce” rating, based on one Buy, ten Hold and five Sell ratings, with an average price target of $108.15.
• Prudential recently exceeded quarterly earnings expectations, reporting $4.08 EPS versus the $3.52 consensus, and pays a quarterly dividend of $1.40 per share, representing a 4.8% annualized yield.

Prudential Financial, Inc. (NYSE:PRU - Free Report) - Investment analysts at DOWLING & PARTN lowered their FY2026 EPS estimates for shares of Prudential Financial in a research note issued on Tuesday, October 13th. DOWLING & PARTN analyst J. Hurwitz now forecasts that the financial services provider will earn $14.65 per share for the year, down from their prior forecast of $14.90. The consensus estimate for Prudential Financial's current full-year earnings is $14.50 per share. DOWLING & PARTN also issued estimates for Prudential Financial's FY2027 earnings at $14.60 EPS and FY2028 earnings at $16.15 EPS.

Prudential Financial (NYSE:PRU - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.52 by $0.56. Prudential Financial had a net margin of 6.51% and a return on equity of 16.68%. The company had revenue of $14.15 billion for the quarter, compared to analyst estimates of $14.36 billion. During the same period last year, the business posted $3.58 EPS.

A number of other research firms also recently weighed in on PRU. Barclays lifted their target price on Prudential Financial from $92.00 to $96.00 and gave the stock an "underweight" rating in a research report on Wednesday, October 7th. Wall Street Zen cut Prudential Financial from a "buy" rating to a "hold" rating in a report on Monday, September 28th. Wells Fargo & Company cut their price target on Prudential Financial from $110.00 to $104.00 and set an "underweight" rating for the company in a report on Monday. JPMorgan Chase & Co. reduced their price objective on Prudential Financial from $131.00 to $127.00 and set a "neutral" rating for the company in a research report on Thursday. Finally, Jefferies Financial Group lifted their price objective on Prudential Financial from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Friday, July 10th. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat, Prudential Financial has a consensus rating of "Reduce" and an average price target of $108.15.

Prudential Financial Stock Up 2.5%

Shares of PRU opened at $116.38 on Friday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.16 and a current ratio of 0.16. The company has a 50-day simple moving average of $118.56 and a 200-day simple moving average of $110.75. Prudential Financial has a 52 week low of $91.89 and a 52 week high of $127.72. The firm has a market capitalization of $40.15 billion, a P/E ratio of 10.54, a P/E/G ratio of 1.68 and a beta of 0.85.

Institutional Investors Weigh In On Prudential Financial

A number of institutional investors have recently added to or reduced their stakes in PRU. BlackRock Inc. acquired a new position in shares of Prudential Financial in the 2nd quarter worth approximately $3,507,481,000. State Street Corp boosted its stake in Prudential Financial by 1.2% in the 2nd quarter. State Street Corp now owns 17,164,760 shares of the financial services provider's stock valued at $1,852,593,000 after buying an additional 209,179 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Prudential Financial by 4.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,758,545 shares of the financial services provider's stock valued at $367,089,000 after buying an additional 166,641 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Prudential Financial by 95.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,556,748 shares of the financial services provider's stock valued at $249,769,000 after acquiring an additional 1,247,371 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Prudential Financial in the second quarter valued at $209,055,000. 56.83% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Prudential Financial

In other news, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $24.75, for a total transaction of $5,314,963.50. Following the sale, the insider directly owned 7,973,657 shares in the company, valued at approximately $197,348,010.75. The trade was a 2.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Ann Kappler sold 7,652 shares of Prudential Financial stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $125.01, for a total transaction of $956,576.52. Following the sale, the executive vice president owned 14,407 shares in the company, valued at approximately $1,801,019.07. This trade represents a 34.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.05% of the stock is currently owned by company insiders.

Prudential Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a dividend of $1.40 per share. This represents a $5.60 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date of this dividend was Tuesday, August 25th. Prudential Financial's dividend payout ratio (DPR) is presently 50.72%.

About Prudential Financial

Prudential Financial, Inc NYSE: PRU is a global financial services company that provides insurance, retirement, investment management and related financial products. Founded in 1875 and headquartered in Newark, New Jersey, the company serves individual, institutional and workplace customers through businesses in the United States and selected international markets.

In the United States, Prudential offers life insurance, annuities, retirement plans and group insurance products, including coverage for employees and their families.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.