Prudential (LON:PRU) Shares Cross Above Fifty Day Moving Average - Time to Sell?

Key Points

• Prudential shares rose above their 50-day moving average, trading as high as GBX 972.40 and last changing hands at GBX 959.38; they remained below the 200-day average of GBX 1,051.75.
• Analysts’ consensus rating is Buy, with an average price target of GBX 1,464. Jefferies and Berenberg set GBX 1,500 targets, while Citigroup cut its target to GBX 1,400 but maintained a Buy rating.
• Third-quarter new business profit increased 1%, but pressure in China may weigh on growth and offset some of that modest improvement.

Prudential plc (LON:PRU - Get Free Report) passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of GBX 945.63 and traded as high as GBX 972.40. Prudential shares last traded at GBX 959.38, with a volume of 10,227,914 shares trading hands.

Key Prudential News

Here are the key news stories impacting Prudential this week:

• Positive Sentiment: Prudential’s third-quarter new business profit rose 1%, indicating slight growth in new business despite challenging conditions. This may support sentiment, although the gain was modest. Insurance firm Prudential posts 1% rise in third-quarter new business profit
• Neutral Sentiment: Prudential Hong Kong is working with MediConCen and Mastercard on instant direct billing for medical expenses. The customer-service improvement could help the business, but the reports provide no indication of its expected financial contribution. MediConCen and Mastercard partnership for Prudential Hong Kong
• Neutral Sentiment: CEO and CFO share acquisitions were disclosed through incentive or employee plans. Because these were plan-related transactions, they offer limited evidence of discretionary insider buying. Prudential CEO Acquires Shares Through Incentive Plan Prudential CFO Acquires Shares Through Employee Plan
• Negative Sentiment: Reports noted pressure in China alongside the otherwise resilient quarterly performance. That headwind may constrain growth and temper the positive impact of the small increase in new business profit. Prudential Delivers Resilient Q3 Profit Despite China Pressure

Analysts Set New Price Targets

PRU has been the subject of a number of analyst reports. Jefferies Financial Group restated a "buy" rating and set a GBX 1,500 price target on shares of Prudential in a research note on Thursday, October 29th. Berenberg Bank reaffirmed a "buy" rating and set a GBX 1,500 price objective on shares of Prudential in a report on Thursday. Finally, Citigroup lowered their price objective on Prudential from GBX 1,425 to GBX 1,400 and set a "buy" rating on the stock in a research note on Friday, September 4th. Five research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of GBX 1,464.

Prudential Stock Performance

The company has a market cap of £23.68 billion, a price-to-earnings ratio of 6.76, a PEG ratio of 0.40 and a beta of 0.91. The firm's 50-day moving average price is GBX 945.63 and its 200 day moving average price is GBX 1,051.75.

Insider Transactions at Prudential

In other Prudential news, insider Anil Wadhwani acquired 42 shares of Prudential stock in a transaction on Thursday, September 10th. The shares were purchased at an average cost of GBX 990 per share, with a total value of £415.80. Insiders own 0.52% of the company's stock.

About Prudential

Prudential plc provides life and health insurance and asset management in 24 markets across Asia and Africa. Prudential's mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions. The business has dual primary listings on the Stock Exchange of Hong Kong (2378) and the London Stock Exchange (PRU). It also has a secondary listing on the Singapore Stock Exchange (K6S) and a listing on the New York Stock Exchange (PUK) in the form of American Depositary Receipts.

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