Morgan Stanley Issues Positive Forecast for Prudential Financial (NYSE:PRU) Stock Price

Key Points

• Morgan Stanley raised Prudential Financial’s price target from $92 to $105 but maintained an “underweight” rating, implying roughly 13.7% downside from the stock’s $121.62 price.
• Analyst sentiment remains cautious: PRU has a consensus “Reduce” rating, with 11 Holds, five Sells and one Buy, and an average target price of $109.31.
• Prudential exceeded quarterly earnings expectations, reporting $4.08 in EPS versus the $3.52 consensus estimate, while revenue reached $14.15 billion. The stock rose 0.4% on Monday and is held 56.83% by institutional investors and hedge funds.

Prudential Financial (NYSE:PRU - Get Free Report) had its target price upped by equities research analysts at Morgan Stanley from $92.00 to $105.00 in a report released on Monday,Benzinga reports. The brokerage presently has an "underweight" rating on the financial services provider's stock. Morgan Stanley's price target points to a potential downside of 13.67% from the stock's current price.

PRU has been the topic of several other research reports. Wall Street Zen cut Prudential Financial from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Jefferies Financial Group upped their target price on Prudential Financial from $105.00 to $110.00 and gave the stock a "hold" rating in a report on Friday, July 10th. Piper Sandler increased their price target on Prudential Financial from $110.00 to $128.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 11th. Keefe, Bruyette & Woods lifted their price objective on Prudential Financial from $113.00 to $123.00 and gave the company a "market perform" rating in a report on Tuesday, August 11th. Finally, Barclays upped their price objective on shares of Prudential Financial from $90.00 to $92.00 and gave the stock an "underweight" rating in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $109.31.

Prudential Financial Trading Up 0.4%

PRU traded up $0.47 on Monday, reaching $121.62. 485,595 shares of the company traded hands, compared to its average volume of 2,115,690. The company has a market cap of $41.96 billion, a P/E ratio of 11.02, a price-to-earnings-growth ratio of 2.29 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 has a one year low of $91.89 and a one year high of $127.72. The firm has a fifty day simple moving average of $116.66 and a two-hundred day simple moving average of $105.67.

Prudential Financial (NYSE:PRU - Get Free Report) last issued its earnings results on Tuesday, August 4th. The financial services provider reported $4.08 EPS for the quarter, topping analysts' consensus estimates of $3.52 by $0.56. The business had revenue of $14.15 billion for the quarter, compared to the consensus estimate of $14.36 billion. Prudential Financial had a net margin of 6.51% and a return on equity of 16.68%. During the same period in the prior year, the firm earned $3.58 EPS. As a group, equities research analysts expect that Prudential Financial will post 14.24 earnings per share for the current year.

Insider Activity at Prudential Financial

In other Prudential Financial news, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial 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 of the company's stock, valued at approximately $197,348,010.75. The trade was a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Ann M. Kappler sold 7,652 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $125.01, for a total value of $956,576.52. Following the transaction, the executive vice president directly owned 14,407 shares in the company, valued at approximately $1,801,019.07. The trade was a 34.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PRU. Jessup Wealth Management Inc acquired a new position in shares of Prudential Financial during the fourth quarter valued at about $25,000. Archer Investment Corp acquired a new stake in Prudential Financial in the 2nd quarter worth approximately $26,000. Garton & Associates Financial Advisors LLC purchased a new stake in Prudential Financial during the 4th quarter worth approximately $26,000. SJS Investment Consulting Inc. increased its stake in Prudential Financial by 93.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 278 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 134 shares in the last quarter. Finally, Coston McIsaac & Partners raised its holdings in shares of Prudential Financial by 93.4% in the fourth 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 last quarter. 56.83% of the stock is owned by institutional investors and hedge funds.

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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