BlackRock Inc. Takes $2.16 Billion Position in Principal Financial Group, Inc. $PFG

Key Points

• BlackRock acquired 20.0 million shares of Principal Financial Group worth approximately $2.16 billion, giving it a 9.35% stake. Institutional investors collectively own 75.08% of the company.
• Analysts maintain a broadly cautious view, with a consensus “Hold” rating and a $106.67 target price. Recent targets range from $92 to $112, while the stock recently opened at $111.64.
• Principal Financial Group reported quarterly EPS of $2.50, exceeding estimates of $2.33, and raised its quarterly dividend to $0.84 per share, equivalent to a 3.0% annualized yield.

BlackRock Inc. bought a new stake in shares of Principal Financial Group, Inc. (NASDAQ:PFG - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 20,014,673 shares of the company's stock, valued at approximately $2,157,181,000. BlackRock Inc. owned approximately 9.35% of Principal Financial Group as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Eurizon Capital SGR S.p.A. purchased a new stake in Principal Financial Group during the 4th quarter valued at approximately $32,473,000. MUFG Securities EMEA plc raised its position in shares of Principal Financial Group by 1,219.5% during the fourth quarter. MUFG Securities EMEA plc now owns 51,196 shares of the company's stock valued at $4,516,000 after buying an additional 47,316 shares during the last quarter. Commerzbank Aktiengesellschaft FI purchased a new position in shares of Principal Financial Group in the fourth quarter worth $1,277,000. Legal & General Group Plc lifted its holdings in shares of Principal Financial Group by 1.5% in the fourth quarter. Legal & General Group Plc now owns 1,639,302 shares of the company's stock worth $144,603,000 after buying an additional 23,686 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Principal Financial Group during the fourth quarter worth $273,276,000. Institutional investors own 75.08% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on PFG. Citigroup cut shares of Principal Financial Group from a "sell" rating to an "underperform" rating in a research note on Wednesday, June 24th. Morgan Stanley increased their price objective on shares of Principal Financial Group from $107.00 to $112.00 and gave the company an "equal weight" rating in a report on Monday, July 6th. Atlantic Securities set a $94.00 price objective on Principal Financial Group in a research report on Wednesday, July 15th. Barclays lifted their target price on Principal Financial Group from $87.00 to $92.00 and gave the stock an "underweight" rating in a report on Tuesday, July 7th. Finally, Jefferies Financial Group boosted their target price on Principal Financial Group from $91.00 to $98.00 and gave the stock a "hold" rating in a research report on Friday, July 10th. Three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $106.67.

Principal Financial Group Price Performance

Principal Financial Group stock opened at $111.64 on Thursday. Principal Financial Group, Inc. has a 52-week low of $77.34 and a 52-week high of $116.61. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.36. The firm's fifty day moving average is $111.66 and its 200 day moving average is $101.30. The company has a market cap of $23.90 billion, a price-to-earnings ratio of 15.86, a PEG ratio of 1.03 and a beta of 0.88.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The company reported $2.50 EPS for the quarter, topping analysts' consensus estimates of $2.33 by $0.17. The business had revenue of $3.99 billion during the quarter, compared to analysts' expectations 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 last year, the company posted $2.16 EPS. Sell-side analysts forecast that Principal Financial Group, Inc. will post 9.57 EPS for the current fiscal year.

Principal Financial Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Thursday, September 3rd will be given a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a yield of 3.0%. This is a boost from Principal Financial Group's previous quarterly dividend of $0.82. The ex-dividend date is Thursday, September 3rd. Principal Financial Group's dividend payout ratio (DPR) is currently 46.59%.

Principal Financial Group Company Profile

Principal Financial Group NASDAQ: PFG is a global financial services company headquartered in Des Moines, Iowa, that provides a range of retirement, investment and insurance solutions to individuals, employers and institutional clients. The firm's business is organized around retirement services, asset management, and insurance products designed to help clients plan, invest for, and protect income over the long term.

Principal's product and service offerings include retirement plan recordkeeping and administration for employer-sponsored plans, individual and group retirement annuities, life and disability insurance, employee benefits solutions, and wealth management services.

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