Rakuten Investment Management Inc. Makes New $6.20 Million Investment in Prudential Financial, Inc. $PRU

Key Points

• Rakuten Investment Management acquired 56,803 Prudential Financial shares worth approximately $6.2 million in the second quarter. Institutional investors collectively own 56.83% of PRU’s outstanding stock.
• Prudential reported quarterly EPS of $4.08, beating analysts’ $3.52 estimate, while revenue of $14.15 billion fell short of expectations. The company declared a quarterly dividend of $1.40, representing a 4.7% annualized yield.
• Analysts remain cautious, with a consensus “Reduce” rating and an average price target of $109.31, below the stock’s reported $119.80 price. Shares have risen from a 12-month low of $91.89 but remain below the $127.72 high.

Rakuten Investment Management Inc. acquired a new stake in Prudential Financial, Inc. (NYSE:PRU - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 56,803 shares of the financial services provider's stock, valued at approximately $6,203,000.

Other institutional investors have also made changes to their positions in the company. Jessup Wealth Management Inc bought a new position in Prudential Financial during the fourth quarter worth about $25,000. Garton & Associates Financial Advisors LLC bought a new stake in shares of Prudential Financial in the 4th quarter valued at approximately $26,000. Basepoint Wealth LLC acquired a new position in shares of Prudential Financial in the 4th quarter worth approximately $30,000. Coston McIsaac & Partners lifted its position in shares of Prudential Financial by 93.4% during the 4th quarter. Coston McIsaac & Partners now owns 265 shares of the financial services provider's stock worth $29,000 after buying an additional 128 shares during the period. Finally, SJS Investment Consulting Inc. boosted its stake in Prudential Financial by 93.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 278 shares of the financial services provider's stock valued at $27,000 after buying an additional 134 shares in the last quarter. 56.83% of the stock is currently owned by institutional investors and hedge funds.

Prudential Financial Stock Down 0.5%

Shares of NYSE PRU opened at $119.80 on Friday. The firm's 50-day simple moving average is $117.95 and its 200 day simple moving average is $106.27. The company has a market cap of $41.33 billion, a price-to-earnings ratio of 10.85, a price-to-earnings-growth ratio of 2.25 and a beta of 0.84. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.62. Prudential Financial, Inc. has a 12-month low of $91.89 and a 12-month high of $127.72.

Prudential Financial (NYSE:PRU - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share for the quarter, beating 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 firm had revenue of $14.15 billion during the quarter, compared to analysts' expectations of $14.36 billion. During the same quarter last year, the company posted $3.58 EPS. On average, research analysts expect that Prudential Financial, Inc. will post 14.51 earnings per share for the current fiscal year.

Prudential Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Tuesday, August 25th will be issued a $1.40 dividend. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 4.7%. Prudential Financial's dividend payout ratio (DPR) is currently 50.72%.

Insider Buying and Selling

In other news, EVP Ann M. Kappler sold 7,652 shares of the business's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $125.01, for a total transaction of $956,576.52. Following the completion of the sale, the executive vice president owned 14,407 shares in the company, valued at $1,801,019.07. The trade was a 34.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of the company's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $24.75, for a total value of $5,314,963.50. Following the transaction, the insider directly owned 7,973,657 shares in the company, valued at $197,348,010.75. This trade represents a 2.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.05% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on PRU shares. Weiss Ratings upgraded Prudential Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 16th. Mizuho boosted their target price on shares of Prudential Financial from $101.00 to $109.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Wells Fargo & Company upped their target price on shares of Prudential Financial from $103.00 to $110.00 and gave the stock an "underweight" rating in a report on Wednesday, August 19th. Argus downgraded shares of Prudential Financial from a "buy" rating to a "hold" rating in a report on Tuesday, June 9th. Finally, Morgan Stanley boosted their price target on shares of Prudential Financial from $92.00 to $105.00 and gave the company an "underweight" rating in a research report on Monday, August 24th. One investment analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and five have assigned a Sell rating to the company's stock. According to data from MarketBeat, Prudential Financial presently has a consensus rating of "Reduce" and a consensus target price of $109.31.

About Prudential Financial

Prudential Financial, Inc, headquartered in Newark, New Jersey, is a diversified financial services company with roots dating to 1875. The firm provides a range of insurance, retirement and investment products aimed at helping individual and institutional clients manage risk, accumulate and protect wealth, and plan for retirement. Prudential's long history in life insurance and related financial services has positioned it as a major participant in the U.S. insurance market and a provider of services to a broad client base.

Prudential's core business activities include individual life insurance, annuities, retirement solutions and group insurance products for employers.

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