Primerica (NYSE:PRI) Hits New 52-Week High - Here's Why

Key Points

• Primerica shares reached a new 52-week high, trading as high as $317.76 and closing around $317.06, with the stock up about 1% during the session.
• The company reported stronger-than-expected quarterly results, with earnings per share of $5.96 versus the $5.45 consensus estimate and revenue of $872.3 million, up 8.6% year over year.
• Analyst sentiment remains mixed: three analysts rate Primerica a Buy and five rate it a Hold, producing an average “Hold” rating and a $308.67 price target, although TD Cowen raised its target to $360.

Primerica, Inc. (NYSE:PRI - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Monday . The company traded as high as $317.76 and last traded at $317.06, with a volume of 5343 shares. The stock had previously closed at $314.59.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Keefe, Bruyette & Woods boosted their price target on shares of Primerica from $305.00 to $323.00 and gave the stock a "market perform" rating in a research note on Monday, July 13th. Jefferies Financial Group increased their price objective on Primerica from $266.00 to $268.00 and gave the company a "hold" rating in a research note on Friday, July 10th. Morgan Stanley lifted their target price on Primerica from $280.00 to $291.00 and gave the company an "equal weight" rating in a report on Thursday, May 21st. TD Cowen upped their price target on Primerica from $322.00 to $360.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Weiss Ratings raised Primerica from a "buy (b)" rating to a "buy (b+)" rating in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Primerica currently has an average rating of "Hold" and an average price target of $308.67.

Primerica Stock Up 1.0%

The stock has a market cap of $9.91 billion, a PE ratio of 13.33 and a beta of 0.88. The firm has a fifty day moving average of $286.72 and a 200 day moving average of $270.80.

Primerica (NYSE:PRI - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $5.96 earnings per share 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 firm had revenue of $872.30 million during the quarter, compared to analysts' expectations of $855.36 million. During the same period in the previous year, the company earned $5.02 earnings per share. Primerica's quarterly revenue was up 8.6% compared to the same quarter last year. On average, equities research analysts forecast that Primerica, Inc. will post 24.6 EPS for the current fiscal year.

Primerica Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were issued a dividend of $1.20 per share. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $4.80 dividend on an annualized basis and a yield of 1.5%. Primerica's payout ratio is currently 20.13%.

Insider Activity

In other news, CEO Glenn J. Williams sold 1,500 shares of the firm's 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 completion of the transaction, the chief executive officer owned 33,696 shares in the company, valued at $9,451,391.04. This trade represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Peter W. Schneider sold 1,800 shares of Primerica stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $279.64, for a total value of $503,352.00. Following the transaction, the president owned 9,811 shares of the company's stock, valued at $2,743,548.04. This represents a 15.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.63% of the company's stock.

Institutional Trading of Primerica

A number of hedge funds have recently bought and sold shares of the company. V Square Quantitative Management LLC acquired a new position in Primerica in the 4th quarter valued at $30,000. SJS Investment Consulting Inc. grew its position in shares of Primerica by 176.2% in the first quarter. SJS Investment Consulting Inc. now owns 116 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 74 shares during the period. Root Financial Partners LLC increased its stake in Primerica by 52.6% in the first quarter. Root Financial Partners LLC now owns 177 shares of the financial services provider's stock valued at $44,000 after purchasing an additional 61 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in Primerica by 68.9% during the fourth quarter. Smartleaf Asset Management LLC now owns 179 shares of the financial services provider's stock worth $47,000 after buying an additional 73 shares during the period. Finally, Torren Management LLC purchased a new position in Primerica during the fourth quarter worth about $50,000. Institutional investors and hedge funds own 90.88% of the company's stock.

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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