Principal Financial Group (NASDAQ:PFG) Hits New 1-Year High on Analyst Upgrade

Key Points

• Principal Financial Group shares hit a new 52-week high after Keefe, Bruyette & Woods raised its price target to $112 from $102, though the firm kept a market perform rating.
• Analyst opinions remain mixed: the stock has a consensus Hold rating with an average target price of $105.82, even as some firms lifted their targets and others maintained cautious views.
• The company recently raised its quarterly dividend to $0.82 per share from $0.80, while its latest earnings beat EPS expectations but revenue came in below consensus.

Shares of Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) hit a new 52-week high on Monday after Keefe, Bruyette & Woods raised their price target on the stock from $102.00 to $112.00. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Principal Financial Group traded as high as $114.06 and last traded at $113.4070, with a volume of 45444 shares changing hands. The stock had previously closed at $112.23.

Several other research firms also recently weighed in on PFG. Bank of America restated an "underperform" rating and set a $95.00 target price (down from $98.00) on shares of Principal Financial Group in a report on Wednesday, June 24th. Evercore set a $108.00 price target on shares of Principal Financial Group in a research report on Monday, April 27th. Wells Fargo & Company raised their price objective on shares of Principal Financial Group from $100.00 to $114.00 and gave the stock an "equal weight" rating in a research note on Thursday. Weiss Ratings lowered Principal Financial Group from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, May 1st. Finally, Jefferies Financial Group increased their target price on Principal Financial Group from $91.00 to $98.00 and gave the company a "hold" rating in a report on Friday. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $105.82.

Insider Activity at Principal Financial Group

In other news, insider Wee Yee Cheong sold 7,534 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $103.16, for a total transaction of $777,207.44. Following the sale, the insider owned 66,443 shares in the company, valued at $6,854,259.88. This trade represents a 10.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, General Counsel George Djurasovic sold 2,571 shares of Principal Financial Group stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $100.83, for a total value of $259,233.93. Following the completion of the sale, the general counsel directly owned 21,906 shares of the company's stock, valued at approximately $2,208,781.98. This represents a 10.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 28,317 shares of company stock valued at $2,884,902 over the last ninety days. 1.13% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Eurizon Capital SGR S.p.A. acquired a new stake in Principal Financial Group during the 4th quarter worth approximately $32,473,000. National Wealth Management Group LLC acquired a new position in Principal Financial Group during the fourth quarter valued at approximately $998,000. Wealth Enhancement Advisory Services LLC lifted its position in Principal Financial Group by 47.3% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 50,386 shares of the company's stock valued at $4,630,000 after buying an additional 16,171 shares in the last quarter. LBP AM SA purchased a new stake in Principal Financial Group during the fourth quarter worth approximately $10,400,000. Finally, VCI Wealth Management LLC purchased a new stake in Principal Financial Group during the fourth quarter worth approximately $1,650,000. 75.08% of the stock is currently owned by hedge funds and other institutional investors.

Principal Financial Group Stock Up 1.3%

The firm's 50-day moving average price is $106.00 and its 200-day moving average price is $96.87. The company has a market cap of $24.55 billion, a price-to-earnings ratio of 16.25, a price-to-earnings-growth ratio of 1.12 and a beta of 0.88. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.27 and a quick ratio of 0.27.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $2.07 EPS for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $4.11 billion. During the same quarter last year, the firm posted $1.81 EPS. Sell-side analysts forecast that Principal Financial Group, Inc. will post 9.37 earnings per share for the current fiscal year.

Principal Financial Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Monday, June 1st were given a $0.82 dividend. The ex-dividend date of this dividend was Monday, June 1st. This is a positive change from Principal Financial Group's previous quarterly dividend of $0.80. This represents a $3.28 annualized dividend and a dividend yield of 2.9%. Principal Financial Group's dividend payout ratio (DPR) is currently 46.92%.

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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