Principal Financial Group (NASDAQ:PFG) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Principal Financial Group beat quarterly earnings expectations: The company reported EPS of $2.50, exceeding the consensus estimate of $2.33 by $0.17. Return on equity was 16.25%, while net margin reached 10.10%.
• Shares rose to $111.29 following the results, near the company’s 52-week high of $114.90. Principal has a $24.04 billion market capitalization and trades at a P/E ratio of 15.92.
• Analyst sentiment remains mixed: Piper Sandler raised its price target to $125, but the consensus rating is “Hold” with an average target of $105. Insiders have sold 28,317 shares worth approximately $2.9 million over the past 90 days.

Principal Financial Group (NASDAQ:PFG - Get Free Report) announced its quarterly earnings results on Monday. The company reported $2.50 EPS for the quarter, beating the consensus estimate of $2.33 by $0.17, Zacks reports. Principal Financial Group had a return on equity of 16.25% and a net margin of 10.10%.

Principal Financial Group Stock Performance

Shares of Principal Financial Group stock traded up $1.89 on Monday, reaching $111.29. The stock had a trading volume of 2,434,103 shares, compared to its average volume of 1,518,394. The business's 50-day moving average price is $108.14 and its two-hundred day moving average price is $98.43. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.27 and a current ratio of 0.27. Principal Financial Group has a fifty-two week low of $75.00 and a fifty-two week high of $114.90. The stock has a market cap of $24.04 billion, a P/E ratio of 15.92, a price-to-earnings-growth ratio of 1.05 and a beta of 0.88.

Insider Buying and Selling at Principal Financial Group

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

Hedge Funds Weigh In On Principal Financial Group

Institutional investors have recently made changes to their positions in the business. Parallel Advisors LLC boosted its stake in Principal Financial Group by 7.6% during the 4th quarter. Parallel Advisors LLC now owns 1,686 shares of the company's stock valued at $149,000 after purchasing an additional 119 shares during the period. Kestra Private Wealth Services LLC increased its position in Principal Financial Group by 1.0% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 13,800 shares of the company's stock worth $1,144,000 after buying an additional 137 shares during the period. Capital Analysts LLC increased its position in Principal Financial Group by 8.0% in the 4th quarter. Capital Analysts LLC now owns 1,954 shares of the company's stock worth $173,000 after buying an additional 144 shares during the period. Brooklyn Investment Group lifted its holdings in shares of Principal Financial Group by 2.1% during the fourth quarter. Brooklyn Investment Group now owns 8,116 shares of the company's stock worth $723,000 after buying an additional 167 shares during the last quarter. Finally, Lido Advisors LLC boosted its position in shares of Principal Financial Group by 3.1% in the fourth quarter. Lido Advisors LLC now owns 5,801 shares of the company's stock valued at $483,000 after acquiring an additional 172 shares during the period. 75.08% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on PFG. Piper Sandler lifted their target price on shares of Principal Financial Group from $113.00 to $125.00 and gave the company an "overweight" rating in a research note on Wednesday, June 24th. Raymond James Financial lowered shares of Principal Financial Group from a "strong-buy" rating to an "outperform" rating and increased their price target for the stock from $99.00 to $111.00 in a research note on Tuesday, May 19th. Jefferies Financial Group raised their price target on shares of Principal Financial Group from $91.00 to $98.00 and gave the company a "hold" rating in a report on Friday, July 10th. UBS Group lifted their price objective on shares of Principal Financial Group from $92.00 to $94.00 and gave the company a "neutral" rating in a research note on Thursday, April 9th. Finally, Bank of America reiterated an "underperform" rating and issued a $95.00 price objective (down from $98.00) on shares of Principal Financial Group in a report on Wednesday, June 24th. Three analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $105.00.

Principal Financial Group Company Profile

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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