Keefe, Bruyette & Woods Forecasts Strong Price Appreciation for Primerica (NYSE:PRI) Stock

Key Points

• Keefe, Bruyette & Woods raised its price target on Primerica to $323 from $305, implying about 4.5% upside, while keeping a market perform rating.
• Primerica reported better-than-expected quarterly results, with EPS of $5.96 versus $5.45 expected and revenue of $872.3 million, up 8.6% year over year.
• The stock has attracted mixed analyst sentiment and heavy institutional ownership: the consensus rating is Hold, but 90.88% of shares are held by institutions and hedge funds.

Primerica (NYSE:PRI - Get Free Report) had its price objective boosted by investment analysts at Keefe, Bruyette & Woods from $305.00 to $323.00 in a research report issued on Monday,Benzinga reports. The firm currently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective would indicate a potential upside of 4.46% from the stock's current price.

A number of other equities research analysts have also issued reports on the stock. Weiss Ratings upgraded shares of Primerica from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, May 27th. Jefferies Financial Group lifted their price objective on shares of Primerica from $266.00 to $268.00 and gave the stock a "hold" rating in a research report on Friday. Finally, Morgan Stanley boosted their target price on shares of Primerica from $280.00 to $291.00 and gave the company an "equal weight" rating in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $298.40.

Primerica Trading Up 1.5%

Shares of PRI opened at $309.21 on Monday. The business's 50-day moving average price is $279.50 and its 200 day moving average price is $267.30. The stock has a market capitalization of $9.64 billion, a P/E ratio of 12.94 and a beta of 0.88. Primerica has a 1-year low of $230.09 and a 1-year high of $308.55.

Primerica (NYSE:PRI - Get Free Report) last posted its quarterly earnings data 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 net margin of 22.99% and a return on equity of 32.32%. The company had revenue of $872.30 million during the quarter, compared to analyst estimates of $855.36 million. During the same period in the prior year, the firm earned $5.02 earnings per share. The business's quarterly revenue was up 8.6% on a year-over-year basis. On average, research analysts predict that Primerica will post 24.51 earnings per share for the current year.

Insiders Place Their Bets

In other news, President Peter W. Schneider sold 1,800 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $279.64, for a total value of $503,352.00. Following the transaction, the president directly owned 9,811 shares of the company's stock, valued at approximately $2,743,548.04. This represents a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Glenn J. Williams sold 1,500 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $280.49, for a total value of $420,735.00. Following the sale, the chief executive officer owned 33,696 shares of the company's stock, valued at approximately $9,451,391.04. This represents a 4.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On Primerica

Several institutional investors have recently made changes to their positions in PRI. Bank of Montreal Can raised its holdings in Primerica by 5,277.5% during the fourth quarter. Bank of Montreal Can now owns 1,311,634 shares of the financial services provider's stock valued at $338,874,000 after buying an additional 1,287,243 shares in the last quarter. Invesco Ltd. raised its holdings in Primerica by 200.3% in the 4th quarter. Invesco Ltd. now owns 357,696 shares of the financial services provider's stock worth $92,414,000 after acquiring an additional 238,571 shares during the period. Life Cycle Investment Partners Ltd bought a new position in Primerica in the 4th quarter worth $40,714,000. Millennium Management LLC lifted its position in Primerica by 183.3% during the 4th quarter. Millennium Management LLC now owns 212,196 shares of the financial services provider's stock worth $54,823,000 after acquiring an additional 137,297 shares during the last quarter. Finally, Danske Bank A S acquired a new position in Primerica during the 3rd quarter worth $30,396,000. 90.88% of the stock is currently owned by institutional investors and hedge funds.

About Primerica

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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