Principal Financial Group (NASDAQ:PFG) Shares Break Above Fifty Day Moving Average on Disappointing Earnings

Key Points

• Principal Financial Group shares rose above their 50-day moving average, trading as high as $113.97 after the quarterly report.
• Quarterly EPS of $2.22 missed the $2.46 consensus estimate, although revenue of $4.62 billion exceeded forecasts of $4.31 billion.
• The company raised its quarterly dividend to $0.85, equivalent to a 3.0% yield, while analysts maintained a generally cautious outlook with an average “Hold” rating and a $107.75 consensus price target.

Shares of Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) passed above its fifty day moving average during trading on Thursday after the company announced better than expected quarterly earnings. The stock has a fifty day moving average of $112.13 and traded as high as $113.97. Principal Financial Group shares last traded at $113.65, with a volume of 1,348,950 shares.

The company reported $2.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.46 by ($0.24). The firm had revenue of $4.62 billion for the quarter, compared to the consensus estimate of $4.31 billion. Principal Financial Group had a return on equity of 16.51% and a net margin of 11.89%. During the same period last year, the firm earned $2.32 EPS.

Principal Financial Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Wednesday, December 2nd will be paid a $0.85 dividend. This is an increase from Principal Financial Group's previous quarterly dividend of $0.84. This represents a $3.40 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Wednesday, December 2nd. Principal Financial Group's payout ratio is currently 37.33%.

Principal Financial Group News Roundup

Here are the key news stories impacting Principal Financial Group this week:

• Positive Sentiment: Third-quarter profit increased, while revenue of $4.62 billion exceeded the $4.31 billion analyst estimate. The results suggest continued operating strength despite pressure from asset outflows. Principal Financial Group Q3 Profit Rises
• Positive Sentiment: Piper Sandler maintained an “overweight” rating, although it reduced its price target from $128 to $125. The revised target still implies meaningful upside from recent trading levels, providing support for the stock. Piper Sandler Stock Recommendations
• Positive Sentiment: Coverage indicates that Principal’s earnings power remains resilient even as the company experiences asset outflows, a constructive signal for retirement and investment-management operations. Principal Financial Group Q3 Earnings Power Through Asset Outflows
• Neutral Sentiment: Analyst opinions remain mixed, with some investors emphasizing the company’s earnings resilience while others remain concerned about flows and the outlook for financial stocks. Analysts Conflicted on Principal Financial
• Negative Sentiment: Quarterly adjusted earnings of $2.22 per share fell short of the $2.46 consensus estimate, which could limit near-term enthusiasm despite the revenue beat.
• Negative Sentiment: Dowling & Partners lowered its EPS forecasts to $9.13 for fiscal 2026, $10.20 for fiscal 2027 and $11.20 for fiscal 2028. Each estimate is below its prior forecast, signaling more cautious expectations for Principal Financial Group’s future earnings.

Wall Street Analysts Forecast Growth

PFG has been the topic of several research reports. Atlantic Securities set a $94.00 price target on shares of Principal Financial Group in a research note on Wednesday, July 15th. UBS Group reduced their target price on shares of Principal Financial Group from $120.00 to $112.00 and set a "neutral" rating on the stock in a report on Tuesday. Evercore set a $111.00 target price on shares of Principal Financial Group in a report on Wednesday. Keefe, Bruyette & Woods decreased their target price on shares of Principal Financial Group from $117.00 to $115.00 and set a "market perform" rating on the stock in a research report on Friday, October 9th. Finally, JPMorgan Chase & Co. cut their price target on shares of Principal Financial Group from $107.00 to $106.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $107.75.

Institutional Investors Weigh In On Principal Financial Group

Institutional investors have recently added to or reduced their stakes in the company. Welch Group LLC bought a new position in Principal Financial Group during the 3rd quarter valued at approximately $214,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Principal Financial Group in the 3rd quarter worth approximately $26,885,000. Profund Advisors LLC purchased a new position in shares of Principal Financial Group during the third quarter valued at approximately $203,000. Vise Technologies Inc. increased its stake in shares of Principal Financial Group by 12.1% during the third quarter. Vise Technologies Inc. now owns 6,873 shares of the company's stock valued at $769,000 after buying an additional 741 shares during the period. Finally, Unison Advisors LLC raised its holdings in shares of Principal Financial Group by 0.7% during the third quarter. Unison Advisors LLC now owns 62,726 shares of the company's stock valued at $7,023,000 after acquiring an additional 454 shares in the last quarter. Hedge funds and other institutional investors own 75.08% of the company's stock.

Principal Financial Group Stock Performance

The company has a quick ratio of 0.28, a current ratio of 0.24 and a debt-to-equity ratio of 0.37. The company has a market cap of $24.33 billion, a P/E ratio of 12.63, a P/E/G ratio of 1.27 and a beta of 0.86. The business has a fifty day moving average of $112.13 and a 200 day moving average of $103.36.

Principal Financial Group Company Profile

Principal Financial Group, Inc is a global financial services company that helps individuals and businesses build, protect and manage wealth. Its offerings include retirement plans, individual retirement accounts, investment products, life and disability insurance, and financial wellness solutions. The company also provides institutional investment management and pension-risk transfer services.

Principal serves employers, institutions and individual investors through a range of retirement and workplace benefits solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.