Principal Financial Group, Inc. (NASDAQ:PFG) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analyst consensus: Hold — Ten analysts give PFG a consensus "Hold" (1 sell, 7 hold, 2 buy) with an average 12‑month price target of $95.33, below the recent ~$100 share price.
• Quarterly results showed an EPS beat ($2.07 vs. $2.01) but a revenue miss ($3.53B vs. $4.11B), with a 10.1% net margin and 16.25% return on equity.
• Dividend increase: Principal raised its quarterly payout to $0.82 (annualized $3.28) for a ~3.3% yield, with an ex-dividend date of June 1 and a payout ratio around 45.8%.

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) has earned a consensus recommendation of "Hold" from the ten research firms that are covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $95.3333.

Several equities research analysts recently commented on PFG shares. Bank of America decreased their price objective on shares of Principal Financial Group from $96.00 to $92.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 14th. Morgan Stanley boosted their target price on shares of Principal Financial Group from $93.00 to $95.00 and gave the company an "equal weight" rating in a research note on Tuesday, March 3rd. Wells Fargo & Company cut their target price on shares of Principal Financial Group from $91.00 to $87.00 and set an "equal weight" rating for the company in a research note on Friday, April 10th. Keefe, Bruyette & Woods reissued a "hold" rating and issued a $92.00 target price on shares of Principal Financial Group in a research note on Thursday, March 26th. Finally, Weiss Ratings downgraded shares of Principal Financial Group from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, May 1st.

Principal Financial Group Price Performance

Principal Financial Group stock opened at $100.03 on Friday. Principal Financial Group has a 52 week low of $75.00 and a 52 week high of $103.00. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.33. The firm's 50-day simple moving average is $92.76 and its 200 day simple moving average is $89.78. The firm has a market capitalization of $21.61 billion, a PE ratio of 14.31, a P/E/G ratio of 0.96 and a beta of 0.89.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $2.07 EPS for the quarter, topping the consensus estimate of $2.01 by $0.06. Principal Financial Group had a net margin of 10.10% and a return on equity of 16.25%. The business had revenue of $3.53 billion for the quarter, compared to analyst estimates of $4.11 billion. During the same period in the previous year, the firm earned $1.81 EPS. On average, equities research analysts predict that Principal Financial Group will post 9.31 EPS for the current fiscal year.

Principal Financial Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Monday, June 1st will be paid a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Monday, June 1st. This is a positive change from Principal Financial Group's previous quarterly dividend of $0.80. Principal Financial Group's dividend payout ratio is presently 45.78%.

Insider Transactions at Principal Financial Group

In other news, insider Wee Yee Cheong sold 9,183 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $101.26, for a total transaction of $929,870.58. Following the completion of the transaction, the insider owned 77,188 shares of the company's stock, valued at $7,816,056.88. This represents a 10.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel George Djurasovic sold 2,571 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $100.83, for a total transaction of $259,233.93. Following the sale, the general counsel directly owned 21,906 shares of the company's stock, valued at approximately $2,208,781.98. This trade represents a 10.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 17,572 shares of company stock valued at $1,776,769. Corporate insiders own 1.13% of the company's stock.

Hedge Funds Weigh In On Principal Financial Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. DV Equities LLC purchased a new position in shares of Principal Financial Group during the 4th quarter valued at approximately $25,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Principal Financial Group during the 4th quarter valued at approximately $26,000. Hilton Head Capital Partners LLC purchased a new position in shares of Principal Financial Group during the 4th quarter valued at approximately $26,000. Valley Wealth Managers Inc. purchased a new position in shares of Principal Financial Group during the 1st quarter valued at approximately $27,000. Finally, MBM Wealth Consultants LLC purchased a new position in shares of Principal Financial Group during the 1st quarter valued at approximately $28,000. Hedge funds and other institutional investors own 75.08% of the company's stock.

About Principal Financial Group

Principal Financial Group NASDAQ: PFG is a global financial services company headquartered in Des Moines, Iowa, that provides a range of retirement, investment and insurance solutions to individuals, employers and institutional clients. The firm's business is organized around retirement services, asset management, and insurance products designed to help clients plan, invest for, and protect income over the long term.

Principal's product and service offerings include retirement plan recordkeeping and administration for employer-sponsored plans, individual and group retirement annuities, life and disability insurance, employee benefits solutions, and wealth management services.

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