Sumitomo Mitsui Trust Group Inc. Sells 13,965 Shares of Principal Financial Group, Inc. $PFG

Key Points

• Sumitomo Mitsui Trust Group reduced its Principal Financial Group stake by 2.7% in the first quarter, selling 13,965 shares and leaving it with 509,894 shares valued at about $45.9 million.
• Principal Financial Group reported first-quarter EPS of $2.07, topping analyst expectations, and recently raised its quarterly dividend to $0.82 per share from $0.80, implying an annualized yield of 2.9%.
• Analysts are cautious overall: the stock currently has a consensus “Hold” rating with an average price target of $104, even as shares traded near their 12-month high at $112.23.

Sumitomo Mitsui Trust Group Inc. trimmed its stake in Principal Financial Group, Inc. (NASDAQ:PFG - Free Report) by 2.7% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 509,894 shares of the company's stock after selling 13,965 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned 0.24% of Principal Financial Group worth $45,947,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of the stock. Bank of America Corp DE boosted its stake in Principal Financial Group by 9.6% in the 2nd quarter. Bank of America Corp DE now owns 12,370,852 shares of the company's stock worth $982,617,000 after purchasing an additional 1,083,991 shares in the last quarter. Invesco Ltd. increased its stake in Principal Financial Group by 23.2% during the 3rd quarter. Invesco Ltd. now owns 3,376,797 shares of the company's stock valued at $279,970,000 after purchasing an additional 636,334 shares in the last quarter. Norges Bank purchased a new position in Principal Financial Group in the fourth quarter worth about $273,276,000. Morgan Stanley raised its holdings in Principal Financial Group by 1.8% in the fourth quarter. Morgan Stanley now owns 3,079,857 shares of the company's stock worth $271,674,000 after buying an additional 55,669 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in shares of Principal Financial Group by 5.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,498,766 shares of the company's stock worth $220,416,000 after buying an additional 135,631 shares in the last quarter. 75.08% of the stock is owned by hedge funds and other institutional investors.

Principal Financial Group Stock Performance

Shares of PFG stock opened at $112.23 on Monday. Principal Financial Group, Inc. has a 12-month low of $75.00 and a 12-month high of $113.86. The company has a current ratio of 0.27, a quick ratio of 0.27 and a debt-to-equity ratio of 0.33. The firm's 50 day moving average is $106.00 and its 200 day moving average is $96.87. The stock has a market capitalization of $24.24 billion, a P/E ratio of 16.06, a P/E/G ratio of 1.12 and a beta of 0.88.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $2.07 earnings per share for the quarter, beating analysts' consensus estimates of $2.01 by $0.06. The business had revenue of $3.53 billion during the quarter, compared to analyst estimates of $4.11 billion. Principal Financial Group had a net margin of 10.10% and a return on equity of 16.25%. During the same period in the previous year, the business earned $1.81 EPS. Research analysts expect that Principal Financial Group, Inc. will post 9.37 earnings per share for the current year.

Principal Financial Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Monday, June 1st were given a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 2.9%. This is a boost from Principal Financial Group's previous quarterly dividend of $0.80. The ex-dividend date was Monday, June 1st. Principal Financial Group's dividend payout ratio (DPR) is currently 46.92%.

Insider Transactions at Principal Financial Group

In other Principal Financial Group news, insider Wee Yee Cheong sold 9,183 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $101.26, for a total value of $929,870.58. Following the transaction, the insider directly owned 77,188 shares of the company's stock, valued at approximately $7,816,056.88. This trade represents a 10.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, General Counsel George Djurasovic sold 2,571 shares of the company's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $100.83, for a total transaction of $259,233.93. Following the sale, the general counsel directly owned 21,906 shares of the company's stock, valued at $2,208,781.98. The trade was a 10.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 28,317 shares of company stock worth $2,884,902. 1.13% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

PFG has been the topic of a number of recent analyst reports. Bank of America reiterated an "underperform" rating and set a $95.00 price target (down from $98.00) on shares of Principal Financial Group in a report on Wednesday, June 24th. Evercore set a $108.00 price objective on Principal Financial Group in a research report on Monday, April 27th. Weiss Ratings downgraded Principal Financial Group from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, May 1st. Raymond James Financial lowered Principal Financial Group from a "strong-buy" rating to an "outperform" rating and lifted their target price for the stock from $99.00 to $111.00 in a report on Tuesday, May 19th. Finally, Jefferies Financial Group upped their price target on Principal Financial Group from $91.00 to $98.00 and gave the company a "hold" rating in a report on Friday. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $104.00.

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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