Principal Financial Group (NASDAQ:PFG) Price Target Raised to $104.00 at Bank of America

Key Points

• Bank of America raised Principal Financial Group’s price target to $104 from $94 but maintained an “underperform” rating, implying 8.61% downside from the prior close. Analysts overall have a “hold” consensus with an average target of $105.75.
• Principal Financial’s quarterly earnings beat expectations, with EPS of $2.50 versus the $2.33 consensus and $2.16 a year earlier. However, revenue of $3.99 billion fell short of the $4.11 billion estimate.
• PFG shares rose 2.3% to $113.80, near their 52-week high of $114.90, while insiders have sold 25,746 shares during the last quarter.

Principal Financial Group (NASDAQ:PFG - Get Free Report) had its price objective increased by equities research analysts at Bank of America from $94.00 to $104.00 in a report issued on Tuesday,Benzinga reports. The firm currently has an "underperform" rating on the stock. Bank of America's price objective points to a potential downside of 8.61% from the stock's previous close.

A number of other equities research analysts have also issued reports on PFG. Citigroup lowered shares of Principal Financial Group from a "sell" rating to an "underperform" rating in a report on Wednesday, June 24th. Jefferies Financial Group lifted their price objective on shares of Principal Financial Group from $91.00 to $98.00 and gave the stock a "hold" rating in a research report on Friday, July 10th. Piper Sandler boosted 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 Principal Financial Group from a "strong-buy" rating to an "outperform" rating and increased their target price for the company from $99.00 to $111.00 in a report on Tuesday, May 19th. Finally, Morgan Stanley raised their target price on Principal Financial Group from $107.00 to $112.00 and gave the stock an "equal weight" rating in a research report on Monday, July 6th. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $105.75.

Principal Financial Group Trading Up 2.3%

Shares of NASDAQ PFG traded up $2.50 during mid-day trading on Tuesday, hitting $113.80. 1,270,996 shares of the company traded hands, compared to its average volume of 1,516,277. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.33. Principal Financial Group has a 1 year low of $75.00 and a 1 year high of $114.90. The stock has a market capitalization of $24.58 billion, a price-to-earnings ratio of 16.29, a PEG ratio of 1.05 and a beta of 0.88. The business has a 50 day moving average of $108.31 and a two-hundred day moving average of $98.57.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The company reported $2.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.33 by $0.17. Principal Financial Group had a return on equity of 16.25% and a net margin of 10.10%.The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $4.11 billion. During the same quarter in the previous year, the company earned $2.16 EPS. On average, sell-side analysts anticipate that Principal Financial Group will post 9.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Principal Financial Group news, insider Wee Yee Cheong sold 9,183 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $101.26, for a total value of $929,870.58. Following the completion of the sale, the insider owned 77,188 shares in the company, valued at $7,816,056.88. This represents a 10.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last quarter, insiders have sold 25,746 shares of company stock valued at $2,625,668. 1.13% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Principal Financial Group

Hedge funds have recently modified their holdings of the stock. Annex Advisory Services LLC acquired a new position in Principal Financial Group in the 2nd quarter worth about $241,000. Tema ETFs LLC grew its stake in shares of Principal Financial Group by 8.2% in the 2nd quarter. Tema ETFs LLC now owns 5,716 shares of the company's stock valued at $616,000 after buying an additional 435 shares in the last quarter. Handelsbanken Fonder AB increased its holdings in Principal Financial Group by 72.8% in the second quarter. Handelsbanken Fonder AB now owns 29,084 shares of the company's stock worth $3,135,000 after buying an additional 12,250 shares during the last quarter. City Holding Co. increased its holdings in Principal Financial Group by 83.6% in the second quarter. City Holding Co. now owns 964 shares of the company's stock worth $104,000 after buying an additional 439 shares during the last quarter. Finally, Fulton Bank N.A. raised its position in Principal Financial Group by 13.3% during the second quarter. Fulton Bank N.A. now owns 9,665 shares of the company's stock valued at $1,042,000 after acquiring an additional 1,134 shares in the last quarter. 75.08% of the stock is owned by institutional investors and hedge funds.

More Principal Financial Group News

Here are the key news stories impacting Principal Financial Group this week:

• Positive Sentiment: Second-quarter earnings exceeded expectations: PFG reported non-GAAP operating earnings of $2.50 per diluted share, above the $2.33 analyst consensus and up from $2.16 a year earlier. Net income attributable to the company was $403 million, while non-GAAP net income excluding exited businesses was $535 million. Principal Financial Group Announces Second Quarter 2026 Results
• Positive Sentiment: Dividend increased: Principal Financial declared a quarterly dividend of $0.84 per share, up 2.4% from $0.82. The dividend is payable September 25 to shareholders of record September 3, implying an annualized payout of $3.36 and an indicated yield of about 3.0%. This supports the stock’s income appeal and signals management confidence in cash generation.
• Positive Sentiment: Profitability remained solid: The company reported a 10.10% net margin and 16.25% return on equity, metrics that reinforce the earnings beat and provide a favorable backdrop for valuation. Principal Financial Q2 Earnings Beat Estimates
• Neutral Sentiment: Revenue missed estimates: Quarterly revenue was $3.99 billion, below the $4.11 billion consensus. The shortfall offsets part of the benefit from stronger-than-expected earnings and helps explain why the stock’s reaction was more measured despite the EPS beat. Principal Financial Q2 Earnings Metrics Versus Estimates

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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