Vanguard Group Inc. Increases Position in Prudential Financial, Inc. $PRU

Key Points

• Vanguard slightly raised its stake in Prudential to 42,422,113 shares (about 12.12% ownership), adding 59,539 shares in Q4 for a holding worth roughly $4.79 billion.
• Analyst sentiment has turned negative with multiple downgrades and lower targets; the stock's consensus rating is "Reduce" with a consensus price target of $101.75.
• Prudential increased its quarterly dividend to $1.40 (annualized $5.60), implying a yield of about 5.8% and a payout ratio near 56%.

Vanguard Group Inc. lifted its holdings in shares of Prudential Financial, Inc. (NYSE:PRU - Free Report) by 0.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 42,422,113 shares of the financial services provider's stock after acquiring an additional 59,539 shares during the quarter. Vanguard Group Inc. owned 12.12% of Prudential Financial worth $4,788,608,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Sunflower Bank N.A. increased its holdings in Prudential Financial by 3.2% in the fourth quarter. Sunflower Bank N.A. now owns 2,911 shares of the financial services provider's stock valued at $329,000 after buying an additional 91 shares during the last quarter. Wetzel Investment Advisors Inc. increased its holdings in Prudential Financial by 0.9% in the fourth quarter. Wetzel Investment Advisors Inc. now owns 10,022 shares of the financial services provider's stock valued at $1,131,000 after buying an additional 94 shares during the last quarter. CIBC Private Wealth Group LLC increased its holdings in Prudential Financial by 0.3% in the third quarter. CIBC Private Wealth Group LLC now owns 28,795 shares of the financial services provider's stock valued at $2,987,000 after buying an additional 97 shares during the last quarter. Transcend Capital Advisors LLC increased its holdings in Prudential Financial by 2.4% in the fourth quarter. Transcend Capital Advisors LLC now owns 4,175 shares of the financial services provider's stock valued at $471,000 after buying an additional 98 shares during the last quarter. Finally, Mindset Wealth Management LLC increased its holdings in Prudential Financial by 2.1% in the third quarter. Mindset Wealth Management LLC now owns 4,781 shares of the financial services provider's stock valued at $496,000 after buying an additional 100 shares during the last quarter. 56.83% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. BMO Capital Markets decreased their target price on Prudential Financial from $91.00 to $87.00 and set an "underperform" rating for the company in a research note on Thursday, April 23rd. Barclays downgraded Prudential Financial from an "equal weight" rating to an "underweight" rating and decreased their target price for the company from $110.00 to $91.00 in a research note on Wednesday, April 22nd. Mizuho decreased their target price on Prudential Financial from $113.00 to $101.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. Keefe, Bruyette & Woods decreased their target price on Prudential Financial from $104.00 to $100.00 and set a "market perform" rating for the company in a research note on Thursday, April 23rd. Finally, Jefferies Financial Group downgraded Prudential Financial from a "buy" rating to a "hold" rating and decreased their target price for the company from $124.00 to $98.00 in a research note on Wednesday, April 22nd. Ten equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, Prudential Financial has an average rating of "Reduce" and a consensus price target of $101.75.

Insiders Place Their Bets

In other news, Director Thomas D. Stoddard bought 250 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was purchased at an average cost of $102.97 per share, for a total transaction of $25,742.50. Following the completion of the transaction, the director directly owned 250 shares of the company's stock, valued at approximately $25,742.50. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph J. Wolk bought 400 shares of the business's stock in a transaction on Wednesday, February 11th. The stock was purchased at an average price of $105.32 per share, with a total value of $42,128.00. Following the completion of the transaction, the director directly owned 400 shares of the company's stock, valued at $42,128. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought 1,650 shares of company stock worth $168,841 over the last ninety days. Company insiders own 0.05% of the company's stock.

Prudential Financial Stock Performance

Shares of NYSE PRU opened at $95.74 on Tuesday. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.58. The stock has a 50 day simple moving average of $97.35 and a 200-day simple moving average of $104.68. The company has a market cap of $33.30 billion, a PE ratio of 9.57, a P/E/G ratio of 1.22 and a beta of 0.95. Prudential Financial, Inc. has a 12-month low of $91.89 and a 12-month high of $119.76.

Prudential Financial (NYSE:PRU - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The financial services provider reported $3.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.37 by ($0.07). The business had revenue of $14.52 billion for the quarter, compared to analyst estimates of $14.48 billion. Prudential Financial had a return on equity of 16.32% and a net margin of 6.20%.During the same quarter in the prior year, the firm posted $2.96 earnings per share. On average, equities research analysts forecast that Prudential Financial, Inc. will post 13.93 EPS for the current year.

Prudential Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Tuesday, February 17th were given a dividend of $1.40 per share. This is a boost from Prudential Financial's previous quarterly dividend of $1.35. This represents a $5.60 annualized dividend and a dividend yield of 5.8%. The ex-dividend date was Tuesday, February 17th. Prudential Financial's payout ratio is presently 56.00%.

Prudential Financial Profile

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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