Callahan Advisors LLC Takes Position in Primerica, Inc. $PRI

Key Points

• Callahan Advisors LLC disclosed a new fourth-quarter stake in Primerica, buying 18,297 shares valued at about $4.73 million. Other hedge funds also increased holdings, and institutional investors now own 90.88% of the stock.
• Primerica posted better-than-expected earnings for the latest quarter, with EPS of $5.96 versus estimates of $5.45 and revenue of $872.3 million, up 8.6% year over year. The company also reported strong profitability, including a 32.32% return on equity.
• The company declared a quarterly dividend of $1.20 per share, or $4.80 annualized, for a yield of about 1.7%. Meanwhile, insider activity included President Peter W. Schneider selling 1,800 shares under a pre-arranged trading plan, while analysts currently rate the stock Hold on average with a price target of $296.60.

Callahan Advisors LLC bought a new stake in shares of Primerica, Inc. (NYSE:PRI - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 18,297 shares of the financial services provider's stock, valued at approximately $4,727,000. Callahan Advisors LLC owned approximately 0.06% of Primerica at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Vista Investment Partners II LLC acquired a new position in Primerica in the 4th quarter valued at $1,685,000. First Trust Advisors LP raised its stake in Primerica by 12.4% in the 3rd quarter. First Trust Advisors LP now owns 492,083 shares of the financial services provider's stock valued at $136,597,000 after purchasing an additional 54,158 shares during the last quarter. M&T Bank Corp raised its stake in Primerica by 1,155.8% in the 4th quarter. M&T Bank Corp now owns 32,137 shares of the financial services provider's stock valued at $8,303,000 after purchasing an additional 29,578 shares during the last quarter. Prana Capital Management LP increased its stake in shares of Primerica by 22.8% in the 3rd quarter. Prana Capital Management LP now owns 66,916 shares of the financial services provider's stock worth $18,575,000 after acquiring an additional 12,432 shares during the last quarter. Finally, Moran Wealth Management LLC increased its stake in shares of Primerica by 168.6% in the 4th quarter. Moran Wealth Management LLC now owns 20,522 shares of the financial services provider's stock worth $5,302,000 after acquiring an additional 12,881 shares during the last quarter. 90.88% of the stock is owned by institutional investors and hedge funds.

Primerica Price Performance

Shares of Primerica stock opened at $281.22 on Thursday. The business has a 50-day moving average of $264.58 and a 200 day moving average of $261.00. Primerica, Inc. has a 12 month low of $230.09 and a 12 month high of $288.03. The stock has a market capitalization of $8.77 billion, a price-to-earnings ratio of 11.79 and a beta of 0.91.

Primerica (NYSE:PRI - Get Free Report) last announced its earnings results on Wednesday, May 6th. The financial services provider reported $5.96 EPS for the quarter, beating analysts' consensus estimates of $5.45 by $0.51. Primerica had a return on equity of 32.32% and a net margin of 22.99%.The company had revenue of $872.30 million during the quarter, compared to analysts' expectations of $855.36 million. During the same period last year, the business posted $5.02 EPS. Primerica's revenue for the quarter was up 8.6% on a year-over-year basis. Equities research analysts anticipate that Primerica, Inc. will post 24.2 earnings per share for the current year.

Primerica Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Thursday, May 21st will be issued a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Thursday, May 21st. Primerica's dividend payout ratio (DPR) is 20.13%.

Wall Street Analysts Forecast Growth

PRI has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods increased their price target on Primerica from $290.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, May 13th. Zacks Research cut Primerica from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. Morgan Stanley lowered their price target on Primerica from $292.00 to $285.00 and set an "equal weight" rating for the company in a report on Tuesday, March 3rd. TD Cowen reiterated a "buy" rating on shares of Primerica in a report on Wednesday, January 28th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Primerica in a report on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $296.60.

Insider Buying and Selling

In related news, President Peter W. Schneider sold 1,800 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $279.64, for a total transaction of $503,352.00. Following the completion of the transaction, the president directly owned 9,811 shares in the company, valued at $2,743,548.04. This trade represents a 15.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.63% of the stock is owned by company insiders.

Primerica Company Profile

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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