Bank of America Corp DE Makes New Investment in Prudential Financial, Inc. $PRU

Key Points

• Bank of America initiated a sizable Prudential Financial position in the second quarter, purchasing 1.94 million shares valued at approximately $209 million, or about 0.56% of PRU.
• Analysts remain cautious on the stock: Prudential has a consensus “Reduce” rating and an average price target of $109.31, below its reported trading price of $117.08. Recent insider transactions also included sales by a major shareholder and an executive.
• Prudential reported quarterly EPS of $4.08, exceeding estimates of $3.52, and maintains a quarterly dividend of $1.40, equivalent to a 4.8% annualized yield.

Bank of America Corp DE purchased a new position in shares of Prudential Financial, Inc. (NYSE:PRU - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,936,042 shares of the financial services provider's stock, valued at approximately $208,957,000. Bank of America Corp DE owned about 0.56% of Prudential Financial at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Keating Financial Advisory Services Inc. raised its holdings in shares of Prudential Financial by 34.8% during the 2nd quarter. Keating Financial Advisory Services Inc. now owns 395 shares of the financial services provider's stock valued at $43,000 after buying an additional 102 shares during the period. TD Private Client Wealth LLC lifted its position in shares of Prudential Financial by 5.6% during the fourth quarter. TD Private Client Wealth LLC now owns 1,972 shares of the financial services provider's stock worth $223,000 after purchasing an additional 104 shares in the last quarter. Apella Capital LLC lifted its position in shares of Prudential Financial by 3.7% during the first quarter. Apella Capital LLC now owns 2,979 shares of the financial services provider's stock worth $303,000 after purchasing an additional 106 shares in the last quarter. Cullen Frost Bankers Inc. boosted its stake in shares of Prudential Financial by 18.8% in the fourth quarter. Cullen Frost Bankers Inc. now owns 728 shares of the financial services provider's stock valued at $82,000 after purchasing an additional 115 shares during the period. Finally, Investment Research Partners LLC grew its holdings in Prudential Financial by 1.8% during the 4th quarter. Investment Research Partners LLC now owns 6,503 shares of the financial services provider's stock valued at $734,000 after purchasing an additional 115 shares in the last quarter. 56.83% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $24.75, for a total value of $5,314,963.50. Following the sale, the insider owned 7,973,657 shares of the company's stock, valued at approximately $197,348,010.75. This trade represents a 2.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Ann M. Kappler sold 7,652 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $125.01, for a total value of $956,576.52. Following the transaction, the executive vice president owned 14,407 shares of the company's stock, valued at $1,801,019.07. This represents a 34.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.05% of the company's stock.

Wall Street Analyst Weigh In

PRU has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. boosted their price objective on shares of Prudential Financial from $129.00 to $131.00 and gave the stock a "neutral" rating in a report on Monday, August 17th. Piper Sandler raised their target price on Prudential Financial from $110.00 to $128.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Wall Street Zen cut Prudential Financial from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. Keefe, Bruyette & Woods increased their price target on Prudential Financial from $113.00 to $123.00 and gave the company a "market perform" rating in a report on Tuesday, August 11th. Finally, Wells Fargo & Company raised their price objective on Prudential Financial from $103.00 to $110.00 and gave the company an "underweight" rating in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Buy rating, ten have given a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, Prudential Financial currently has a consensus rating of "Reduce" and a consensus target price of $109.31.

Prudential Financial Stock Performance

Prudential Financial stock opened at $117.08 on Thursday. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.16 and a quick ratio of 0.16. Prudential Financial, Inc. has a 12 month low of $91.89 and a 12 month high of $127.72. The company has a fifty day moving average price of $120.30 and a two-hundred day moving average price of $107.79. The company has a market cap of $40.39 billion, a PE ratio of 10.60, a P/E/G ratio of 1.79 and a beta of 0.83.

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 analysts' consensus estimates 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 the consensus estimate of $14.36 billion. During the same period last year, the firm posted $3.58 EPS. Research analysts expect that Prudential Financial, Inc. will post 14.57 earnings per share for the current year.

Prudential Financial Dividend Announcement

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

Prudential Financial Profile

Prudential Financial, Inc is a global financial services company headquartered in Newark, New Jersey. Founded in 1875 as The Widows and Orphans Friendly Society, the company has grown from a life insurance provider into a diversified business offering insurance, retirement, investment management and related financial services.

Through its U.S. businesses, Prudential provides individual life insurance and annuities, workplace retirement plans, pension risk transfer solutions, group life and disability insurance, and other benefits and financial wellness products.

Want to see what other hedge funds are holding PRU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Prudential Financial, Inc. (NYSE:PRU - Free Report).

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.