Victory Capital Management Inc. Reduces Stake in Primerica, Inc. $PRI

Key Points

• Victory Capital Management cut its stake in Primerica by 34.7% in Q3 to 37,221 shares (about $10.33M), and overall institutional/hedge fund ownership stands at roughly 90.88%.
• Primerica beat expectations for the quarter, reporting $6.13 EPS vs. $5.69 consensus and $853.5M revenue (up 8.3% YoY), with strong profitability metrics (ROE 32.3%, net margin 22.82%).
• The board authorized a $475 million share buyback (up to 5.8% of shares) and raised the quarterly dividend to $1.20 ($4.80 annualized, ~1.9% yield), signaling management confidence in the stock.

Victory Capital Management Inc. lowered its stake in Primerica, Inc. (NYSE:PRI - Free Report) by 34.7% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 37,221 shares of the financial services provider's stock after selling 19,748 shares during the period. Victory Capital Management Inc. owned 0.11% of Primerica worth $10,332,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of PRI. Root Financial Partners LLC bought a new position in shares of Primerica in the 3rd quarter worth approximately $27,000. Smartleaf Asset Management LLC boosted its stake in Primerica by 186.5% in the 3rd quarter. Smartleaf Asset Management LLC now owns 106 shares of the financial services provider's stock worth $29,000 after purchasing an additional 69 shares in the last quarter. Quent Capital LLC bought a new stake in Primerica during the 3rd quarter valued at about $33,000. First Horizon Advisors Inc. lifted its stake in shares of Primerica by 1,714.3% in the second quarter. First Horizon Advisors Inc. now owns 127 shares of the financial services provider's stock worth $35,000 after buying an additional 120 shares in the last quarter. Finally, Hantz Financial Services Inc. raised its holdings in Primerica by 620.0% in the 3rd quarter. Hantz Financial Services Inc. now owns 216 shares of the financial services provider's stock worth $60,000 after acquiring an additional 186 shares during the last quarter. 90.88% of the stock is owned by hedge funds and other institutional investors.

Primerica Stock Down 1.2%

Shares of Primerica stock opened at $251.33 on Thursday. Primerica, Inc. has a 52 week low of $230.09 and a 52 week high of $296.00. The stock's fifty day moving average is $260.28 and its two-hundred day moving average is $262.80. The company has a market capitalization of $7.96 billion, a PE ratio of 10.96 and a beta of 0.92.

Primerica (NYSE:PRI - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The financial services provider reported $6.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.69 by $0.44. Primerica had a return on equity of 32.30% and a net margin of 22.82%.The company had revenue of $853.51 million for the quarter, compared to analysts' expectations of $839.65 million. During the same quarter in the prior year, the firm earned $5.03 earnings per share. Primerica's revenue was up 8.3% compared to the same quarter last year. As a group, research analysts anticipate that Primerica, Inc. will post 20.6 earnings per share for the current year.

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

Primerica Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Monday, February 23rd will be issued a $1.20 dividend. This is an increase from Primerica's previous quarterly dividend of $1.04. This represents a $4.80 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Monday, February 23rd. Primerica's dividend payout ratio is presently 20.93%.

Insider Buying and Selling at Primerica

In other news, President Peter W. Schneider sold 1,800 shares of the company's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $252.38, for a total transaction of $454,284.00. Following the transaction, the president owned 11,611 shares in the company, valued at $2,930,384.18. This represents a 13.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Glenn J. Williams sold 2,500 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $256.41, for a total transaction of $641,025.00. Following the transaction, the chief executive officer owned 27,392 shares in the company, valued at $7,023,582.72. The trade was a 8.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.61% of the company's stock.

Analyst Ratings Changes

PRI has been the subject of a number of research reports. Morgan Stanley decreased their target price on shares of Primerica from $292.00 to $285.00 and set an "equal weight" rating for the company in a research note on Tuesday, March 3rd. Weiss Ratings raised Primerica from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, February 6th. TD Cowen reiterated a "buy" rating on shares of Primerica in a research note on Wednesday, January 28th. Finally, Zacks Research downgraded shares of Primerica from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. Three equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $298.60.

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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