Burgundy Asset Management Ltd. Reduces Holdings in Primerica, Inc. $PRI

Key Points

• Burgundy Asset Management trimmed its Primerica stake by 0.6% in Q3, selling 8,505 shares and now holds 1,324,968 shares (about 4.09% of PRI) worth roughly $356.9 million, making PRI its second-largest position.
• CEO Glenn J. Williams sold 2,500 shares at an average price of $256.41 on Feb. 17, generating about $641,025 and reducing his holdings to 27,392 shares (an 8.36% decrease).
• Primerica beat quarterly EPS and revenue estimates, the board authorized a $475 million share repurchase (up to 5.8% of shares) and raised the quarterly dividend to $1.20 (annualized $4.80, ~1.8% yield).

Burgundy Asset Management Ltd. lowered its holdings in Primerica, Inc. (NYSE:PRI - Free Report) by 0.6% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,324,968 shares of the financial services provider's stock after selling 8,505 shares during the period. Primerica comprises 3.4% of Burgundy Asset Management Ltd.'s holdings, making the stock its 2nd largest position. Burgundy Asset Management Ltd. owned approximately 4.09% of Primerica worth $356,867,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in PRI. Olympiad Research LP boosted its holdings in shares of Primerica by 3.9% in the 2nd quarter. Olympiad Research LP now owns 1,061 shares of the financial services provider's stock worth $290,000 after buying an additional 40 shares during the last quarter. Orion Porfolio Solutions LLC raised its position in Primerica by 1.2% in the second quarter. Orion Porfolio Solutions LLC now owns 3,866 shares of the financial services provider's stock worth $1,058,000 after acquiring an additional 45 shares during the period. Ascent Group LLC boosted its stake in Primerica by 6.5% in the third quarter. Ascent Group LLC now owns 836 shares of the financial services provider's stock valued at $232,000 after acquiring an additional 51 shares during the last quarter. Vident Advisory LLC grew its position in shares of Primerica by 3.2% during the 2nd quarter. Vident Advisory LLC now owns 1,776 shares of the financial services provider's stock valued at $486,000 after acquiring an additional 55 shares during the period. Finally, State Board of Administration of Florida Retirement System increased its stake in shares of Primerica by 0.3% during the 2nd quarter. State Board of Administration of Florida Retirement System now owns 22,844 shares of the financial services provider's stock worth $6,252,000 after purchasing an additional 60 shares during the last quarter. 90.88% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Primerica

In other Primerica news, CEO Glenn J. Williams sold 2,500 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $256.41, for a total value of $641,025.00. Following the sale, the chief executive officer owned 27,392 shares of the company's stock, valued at $7,023,582.72. This trade represents a 8.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.61% of the company's stock.

Analysts Set New Price Targets

Several research firms recently commented on PRI. Zacks Research downgraded Primerica from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 24th. Morgan Stanley dropped their price target on Primerica from $292.00 to $285.00 and set an "equal weight" rating on the stock in a research report on Tuesday. TD Cowen reiterated a "buy" rating on shares of Primerica in a research note on Wednesday, January 28th. Weiss Ratings upgraded Primerica from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, February 6th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Primerica from $320.00 to $315.00 and set a "market perform" rating on the stock in a report on Tuesday, November 11th. Three equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $298.60.

Primerica Stock Performance

NYSE:PRI opened at $262.22 on Thursday. The business's fifty day moving average is $260.64 and its 200 day moving average is $263.15. The firm has a market cap of $8.30 billion, a price-to-earnings ratio of 11.44 and a beta of 0.92. Primerica, Inc. has a 52-week low of $230.09 and a 52-week high of $296.00.

Primerica (NYSE:PRI - Get Free Report) last posted its earnings results on Wednesday, February 11th. The financial services provider reported $6.13 earnings per share for the quarter, beating analysts' consensus estimates of $5.69 by $0.44. Primerica had a return on equity of 32.30% and a net margin of 22.82%.The business had revenue of $853.51 million during the quarter, compared to analyst estimates of $839.65 million. During the same quarter in the previous year, the firm earned $5.03 EPS. The company's quarterly revenue was up 8.3% compared to the same quarter last year. Equities analysts predict that Primerica, Inc. will post 20.6 EPS for the current fiscal year.

Primerica announced that its Board of Directors has authorized a share repurchase plan on Wednesday, November 19th that authorizes the company to repurchase $475.00 million in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Primerica Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, February 23rd will be given a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.8%. This is a boost from Primerica's previous quarterly dividend of $1.04. The ex-dividend date is Monday, February 23rd. Primerica's dividend payout ratio (DPR) is 20.93%.

About Primerica

Primerica, Inc is a financial services company that focuses on delivering term life insurance and investment products to middle-income households in the United States and Canada. The firm operates a network of independent, licensed representatives who provide personalized guidance on coverage needs, retirement planning, and wealth accumulation. Primerica's core mission is to help clients obtain affordable life insurance protection while also offering a suite of savings and investment solutions designed for long-term financial security.

In addition to term life insurance, Primerica offers a range of financial products and services that include mutual funds, annuities, auto and home insurance through partner carriers, and personal lending solutions such as secured and unsecured loans.

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