Primerica (NYSE:PRI) Sets New 12-Month High - Should You Buy?

Key Points

• Primerica shares hit a new 52-week high, trading as high as $289.10 and closing near $288.35, up about 2.2% on the day.
• Recent earnings were strong, with the company beating expectations on both profit and revenue, as Q1 EPS came in at $5.96 versus $5.45 expected and revenue rose 8.6% year over year.
• Analysts remain cautious overall despite higher targets; several firms raised price targets, but the stock still carries a consensus "Hold" rating with an average target of $297.80.

Primerica, Inc. (NYSE:PRI - Get Free Report)'s share price reached a new 52-week high during trading on Wednesday . The company traded as high as $289.10 and last traded at $288.3450, with a volume of 10191 shares trading hands. The stock had previously closed at $284.20.

Analysts Set New Price Targets

PRI has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods boosted their price target on Primerica from $290.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, May 13th. Morgan Stanley upped their price target on shares of Primerica from $280.00 to $291.00 and gave the company an "equal weight" rating in a research note on Thursday, May 21st. Finally, Weiss Ratings upgraded shares of Primerica from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $297.80.

Primerica Trading Up 2.2%

The firm has a market cap of $9.06 billion, a price-to-earnings ratio of 12.18 and a beta of 0.88. The company has a fifty day moving average price of $276.33 and a 200-day moving average price of $264.97.

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 the consensus estimate of $5.45 by $0.51. Primerica had a return on equity of 32.32% and a net margin of 22.99%.The company had revenue of $872.30 million during the quarter, compared to analysts' expectations of $855.36 million. During the same period last year, the business earned $5.02 earnings per share. Primerica's quarterly revenue was up 8.6% on a year-over-year basis. As a group, research analysts forecast that Primerica, Inc. will post 24.45 earnings per share for the current fiscal year.

Primerica Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a dividend of $1.20 per share. This represents a $4.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Thursday, May 21st. Primerica's payout ratio is 20.13%.

Insider Transactions at Primerica

In other Primerica news, President Peter W. Schneider sold 1,800 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $279.64, for a total value of $503,352.00. Following the completion of the transaction, the president owned 9,811 shares in the company, valued at approximately $2,743,548.04. This represents a 15.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Glenn J. Williams sold 1,500 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $280.49, for a total transaction of $420,735.00. Following the sale, the chief executive officer directly owned 33,696 shares in the company, valued at approximately $9,451,391.04. The trade was a 4.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 institutional investors and hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC lifted its position in shares of Primerica by 20.6% during the 1st quarter. Integrated Wealth Concepts LLC now owns 2,142 shares of the financial services provider's stock valued at $609,000 after buying an additional 366 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Primerica by 27.7% during the first quarter. Goldman Sachs Group Inc. now owns 129,666 shares of the financial services provider's stock worth $36,894,000 after acquiring an additional 28,129 shares during the period. Empowered Funds LLC purchased a new position in Primerica during the first quarter valued at $1,763,000. Focus Partners Wealth grew its position in shares of Primerica by 17.5% in the first quarter. Focus Partners Wealth now owns 1,398 shares of the financial services provider's stock valued at $398,000 after purchasing an additional 208 shares during the period. Finally, Geneos Wealth Management Inc. grew its position in shares of Primerica by 205.8% in the first quarter. Geneos Wealth Management Inc. now owns 263 shares of the financial services provider's stock valued at $75,000 after purchasing an additional 177 shares during the period. 90.88% of the stock is currently owned by hedge funds and other institutional investors.

Primerica Company Profile

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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