Prudential Financial (NYSE:PRU) Stock Breaks Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• PRU shares rose above their 200-day moving average, trading as high as $114.15 versus the $109.64 average, while remaining below the 50-day moving average of $119.98.
• Despite a recent earnings beat and a 4.9% dividend yield, analyst sentiment is cautious: the consensus rating is “Reduce”, with an average price target of $109.31 versus the stock’s recent price near $113.44.
• Prudential benefits from a $5 billion Japanese reinsurance agreement and a potentially favorable higher-yield environment, but investors face regulatory concerns involving its Japanese life-insurance business and broader market-rate volatility.

Prudential Financial, Inc. (NYSE:PRU - Get Free Report) shares passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $109.64 and traded as high as $114.15. Prudential Financial shares last traded at $113.4370, with a volume of 1,487,463 shares trading hands.

More Prudential Financial News

Here are the key news stories impacting Prudential Financial this week:

• Positive Sentiment: Large Japanese reinsurance agreement: Prismic Life announced an agreement to reinsure approximately $5 billion of Prudential’s recently originated Japanese whole-life policies. The transaction should help Prudential manage insurance risk and capital requirements while retaining the underlying customer relationships and economics. The deal also highlights demand for Prudential’s life-insurance assets. Prismic Life Announces $5 Billion Reinsurance Agreement with Prudential Financial
• Positive Sentiment: Dividend and valuation support: Recent commentary continues to identify PRU as an attractive dividend stock. Prudential’s relatively low earnings multiple and established payout may appeal to income-oriented investors, particularly as the company works to generate strong returns from its insurance and asset-management businesses. Prudential Is a Top Dividend Stock Right Now
• Positive Sentiment: Higher-yield environment may help: Broader coverage of life insurers points to potentially better investment income and improved profitability for companies with long-duration insurance liabilities when long-term bond yields rise. This is a favorable industry backdrop for Prudential, though market-rate volatility remains a risk. Life Insurance Stocks That Could Benefit From Higher Long-Term Yields
• Neutral Sentiment: Prudential’s expanded sponsorship of the New Jersey Devils, including an away-jersey patch and PGIM helmet decal, increases brand visibility but is unlikely to materially affect near-term earnings. New Jersey Devils Name Prudential Financial as Jersey Patch Partner
• Negative Sentiment: A report about a possible business suspension order involving Prudential’s Japanese life-insurance operation could raise regulatory and reputational concerns. The report’s details and financial impact are not fully clear, so investors may treat it as a risk factor rather than a confirmed material earnings event. Prudential Life Insurance Business Suspension Report

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on PRU shares. Weiss Ratings upgraded Prudential Financial from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, September 29th. TD Cowen upped their price target on shares of Prudential Financial from $102.00 to $114.00 and gave the stock a "hold" rating in a research note on Wednesday, July 22nd. Mizuho increased their price target on shares of Prudential Financial from $101.00 to $109.00 and gave the company a "neutral" rating in a report on Thursday, July 9th. Jefferies Financial Group raised their price objective on shares of Prudential Financial from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Friday, July 10th. Finally, Wall Street Zen downgraded shares of Prudential Financial from a "buy" rating to a "hold" rating in a report on Monday, September 28th. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $109.31.

Prudential Financial Trading Up 0.7%

The business has a 50 day moving average of $119.98 and a 200-day moving average of $109.64. The stock has a market cap of $39.14 billion, a PE ratio of 10.28, a price-to-earnings-growth ratio of 1.69 and a beta of 0.85. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.62.

Prudential Financial (NYSE:PRU - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share for the quarter, topping the consensus estimate of $3.52 by $0.56. Prudential Financial had a return on equity of 16.68% and a net margin of 6.51%.The company had revenue of $14.15 billion during the quarter, compared to the consensus estimate of $14.36 billion. During the same quarter last year, the business posted $3.58 earnings per share. On average, analysts anticipate that Prudential Financial, Inc. will post 14.54 EPS for the current year.

Prudential Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Tuesday, August 25th were paid a $1.40 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $5.60 annualized dividend and a yield of 4.9%. Prudential Financial's payout ratio is presently 50.72%.

Insider Transactions at Prudential Financial

In other Prudential Financial news, EVP Ann Kappler sold 7,652 shares of the company's stock in a transaction dated Friday, August 14th. The shares were 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. This represents a 34.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $24.75, for a total transaction of $5,314,963.50. Following the sale, the insider owned 7,973,657 shares of the company's stock, valued at approximately $197,348,010.75. This trade represents a 2.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.05% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Prudential Financial

Several hedge funds have recently made changes to their positions in PRU. BlackRock Inc. acquired a new position in Prudential Financial in the second quarter valued at $3,507,481,000. State Street Corp boosted its stake in Prudential Financial by 1.2% in the 2nd quarter. State Street Corp now owns 17,164,760 shares of the financial services provider's stock worth $1,852,593,000 after buying an additional 209,179 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Prudential Financial by 4.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,758,545 shares of the financial services provider's stock valued at $367,089,000 after buying an additional 166,641 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Prudential Financial by 95.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,556,748 shares of the financial services provider's stock valued at $249,769,000 after acquiring an additional 1,247,371 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Prudential Financial during the 2nd quarter worth about $209,055,000. Institutional investors and hedge funds own 56.83% of the company's stock.

About Prudential Financial

Prudential Financial, Inc NYSE: PRU is a global financial services company that provides insurance, retirement, investment management and related financial products. Founded in 1875 and headquartered in Newark, New Jersey, the company serves individual, institutional and workplace customers through businesses in the United States and selected international markets.

In the United States, Prudential offers life insurance, annuities, retirement plans and group insurance products, including coverage for employees and their families.

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.