Primerica (NYSE:PRI) Shares Gap Up - Still a Buy?

Key Points

• Primerica, Inc. shares gapped up on Tuesday, opening at $274.01 and currently trading at $269.22, showing strong market activity with over 10,000 shares exchanged.
• The company received mixed analyst ratings: while BMO Capital Markets upgraded it to "outperform" with a price target of $318.00, Morgan Stanley lowered their target to $306.00, indicating divergent views on its performance.
• Primerica reported earnings of $5.46 per share for the last quarter, exceeding expectations and showcasing a net margin of 21.48%, which reflects the company's stable financial performance.

Shares of Primerica, Inc. (NYSE:PRI - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $262.25, but opened at $274.01. Primerica shares last traded at $269.22, with a volume of 10,526 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on PRI shares. Morgan Stanley reduced their price target on Primerica from $308.00 to $306.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 7th. Piper Sandler set a $292.00 target price on Primerica and gave the company a "neutral" rating in a report on Tuesday, October 7th. Keefe, Bruyette & Woods increased their price target on shares of Primerica from $315.00 to $320.00 and gave the stock a "market perform" rating in a report on Monday, August 11th. BMO Capital Markets upgraded shares of Primerica from a "market perform" rating to an "outperform" rating and raised their price objective for the company from $292.00 to $318.00 in a research report on Tuesday, September 23rd. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Primerica in a report on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Primerica presently has an average rating of "Moderate Buy" and an average price target of $314.86.

Primerica Price Performance

The company has a market cap of $8.74 billion, a PE ratio of 13.36 and a beta of 0.97. The company has a fifty day moving average price of $270.32 and a 200 day moving average price of $266.55.

Primerica (NYSE:PRI - Get Free Report) last announced its earnings results on Wednesday, August 6th. The financial services provider reported $5.46 earnings per share for the quarter, beating analysts' consensus estimates of $5.18 by $0.28. Primerica had a net margin of 21.48% and a return on equity of 32.42%. The business had revenue of $796.02 million for the quarter, compared to the consensus estimate of $790.99 million. During the same period last year, the firm posted $4.71 earnings per share. Primerica's quarterly revenue was up .3% on a year-over-year basis. As a group, sell-side analysts predict that Primerica, Inc. will post 20.6 EPS for the current fiscal year.

Primerica Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Friday, August 22nd were issued a dividend of $1.04 per share. This represents a $4.16 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Friday, August 22nd. Primerica's payout ratio is currently 20.55%.

Insider Transactions at Primerica

In related news, CEO Glenn J. Williams sold 2,500 shares of the stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $262.20, for a total value of $655,500.00. Following the transaction, the chief executive officer owned 36,392 shares of the company's stock, valued at $9,541,982.40. This represents a 6.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.61% of the company's stock.

Hedge Funds Weigh In On Primerica

Institutional investors have recently modified their holdings of the company. GAMMA Investing LLC lifted its position in Primerica by 38.1% in the 1st quarter. GAMMA Investing LLC now owns 1,558 shares of the financial services provider's stock worth $443,000 after buying an additional 430 shares during the last quarter. SG Americas Securities LLC purchased a new position in shares of Primerica during the first quarter worth approximately $389,000. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Primerica by 45.6% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 4,928 shares of the financial services provider's stock worth $1,402,000 after acquiring an additional 1,543 shares during the last quarter. Janney Montgomery Scott LLC boosted its stake in shares of Primerica by 1.2% in the 1st quarter. Janney Montgomery Scott LLC now owns 10,323 shares of the financial services provider's stock valued at $2,937,000 after purchasing an additional 125 shares in the last quarter. Finally, Blue Trust Inc. grew its holdings in shares of Primerica by 16.7% during the 1st quarter. Blue Trust Inc. now owns 503 shares of the financial services provider's stock valued at $143,000 after purchasing an additional 72 shares during the last quarter. 90.88% of the stock is currently owned by institutional investors.

Primerica Company Profile

Primerica, Inc, together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.