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

Key Points

• Analyst sentiment is neutral: Thirteen brokerages rate Principal Financial Group “Hold” on average, with three sell, seven hold, and three buy ratings. The average 12-month price target is $105.83, below the stock’s reported $113.98 opening price.
• Quarterly earnings beat expectations: Principal reported adjusted earnings of $2.50 per share versus the $2.33 consensus estimate, although revenue of $3.99 billion fell short of the $4.11 billion forecast.
• The company raised its dividend: The quarterly payout increased to $0.84 per share, or $3.36 annually, representing a 2.9% yield and a 46.59% payout ratio.

Shares of Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) have received an average recommendation of "Hold" from the thirteen research firms that are covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the company. The average 1 year target price among brokers that have covered the stock in the last year is $105.8333.

A number of equities research analysts have issued reports on the stock. JPMorgan Chase & Co. increased their target price on shares of Principal Financial Group from $106.00 to $107.00 and gave the stock a "neutral" rating in a research report on Monday, August 3rd. Atlantic Securities set a $94.00 price target on shares of Principal Financial Group in a report on Wednesday, July 15th. Bank of America upped their price target on shares of Principal Financial Group from $94.00 to $104.00 and gave the stock an "underperform" rating in a research note on Tuesday, July 28th. Evercore set a $108.00 price objective on Principal Financial Group in a report on Monday, April 27th. Finally, Citigroup cut Principal Financial Group from a "sell" rating to an "underperform" rating in a research report on Wednesday, June 24th.

Insider Activity

In related news, insider Wee Yee Cheong sold 7,534 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $103.16, for a total value of $777,207.44. Following the completion of the sale, the insider owned 66,443 shares of the company's stock, valued at approximately $6,854,259.88. The trade was a 10.18% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 1.13% of the stock is currently owned by corporate insiders.

Institutional Trading of Principal Financial Group

A number of institutional investors have recently added to or reduced their stakes in PFG. Focus Financial Network Inc. raised its holdings in shares of Principal Financial Group by 2.0% during the 2nd quarter. Focus Financial Network Inc. now owns 5,613 shares of the company's stock valued at $605,000 after purchasing an additional 110 shares in the last quarter. Prosperity Consulting Group LLC boosted its holdings in Principal Financial Group by 1.6% in the first quarter. Prosperity Consulting Group LLC now owns 6,921 shares of the company's stock worth $624,000 after purchasing an additional 111 shares in the last quarter. Blue Trust Inc. boosted its holdings in Principal Financial Group by 14.8% in the first quarter. Blue Trust Inc. now owns 921 shares of the company's stock worth $83,000 after purchasing an additional 119 shares in the last quarter. Parallel Advisors LLC increased its position in Principal Financial Group by 7.6% during the fourth quarter. Parallel Advisors LLC now owns 1,686 shares of the company's stock worth $149,000 after buying an additional 119 shares during the last quarter. Finally, Beacon Financial Group increased its position in Principal Financial Group by 2.8% during the first quarter. Beacon Financial Group now owns 4,451 shares of the company's stock worth $401,000 after buying an additional 120 shares during the last quarter. 75.08% of the stock is currently owned by institutional investors and hedge funds.

Principal Financial Group Price Performance

Shares of PFG opened at $113.98 on Friday. The business's 50-day moving average is $111.33 and its 200-day moving average is $100.84. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.28 and a quick ratio of 0.28. The company has a market capitalization of $24.40 billion, a price-to-earnings ratio of 16.19, a P/E/G ratio of 1.04 and a beta of 0.88. Principal Financial Group has a fifty-two week low of $77.15 and a fifty-two week high of $116.61.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The company reported $2.50 EPS for the quarter, topping the consensus estimate of $2.33 by $0.17. Principal Financial Group had a net margin of 9.93% and a return on equity of 16.49%. The business had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $4.11 billion. During the same period last year, the company posted $2.16 earnings per share. Equities research analysts expect that Principal Financial Group will post 9.56 EPS for the current fiscal year.

Principal Financial Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Thursday, September 3rd will be paid a dividend of $0.84 per share. This is a boost from Principal Financial Group's previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. Principal Financial Group's dividend payout ratio (DPR) is 46.59%.

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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