Principal Financial Group (NASDAQ:PFG) Rating Lowered to "Outperform" at Raymond James Financial

Key Points

• Raymond James Financial lowered Principal Financial Group from “strong-buy” to “outperform” while keeping a $111 price target, implying about 8.4% upside from the prior close.
• The latest earnings report showed Principal Financial Group beat EPS estimates with $2.07 per share versus $2.01 expected, though revenue came in below forecasts at $3.53 billion versus $4.11 billion anticipated.
• Insider selling has been notable, with executives including Wee Yee Cheong and George Djurasovic reducing their holdings; meanwhile, institutional investors own 75.08% of the stock.

Principal Financial Group (NASDAQ:PFG - Get Free Report) was downgraded by equities research analysts at Raymond James Financial from a "strong-buy" rating to an "outperform" rating in a research note issued to investors on Tuesday. They presently have a $111.00 price objective on the stock. Raymond James Financial's target price suggests a potential upside of 8.40% from the stock's previous close.

Several other analysts have also recently commented on the stock. UBS Group increased their price target 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. Evercore set a $108.00 price objective on Principal Financial Group in a research report on Monday, April 27th. Wells Fargo & Company dropped their target price on Principal Financial Group from $91.00 to $87.00 and set an "equal weight" rating for the company in a research report on Friday, April 10th. Morgan Stanley upped their price target on 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. Finally, Keefe, Bruyette & Woods reiterated a "hold" rating and issued a $92.00 price target on shares of Principal Financial Group in a report on Thursday, March 26th. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $96.90.

Principal Financial Group Price Performance

Principal Financial Group stock opened at $102.40 on Tuesday. The business's fifty day moving average is $93.59 and its two-hundred day moving average is $90.82. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.27 and a current ratio of 0.27. The firm has a market cap of $22.12 billion, a P/E ratio of 14.65, a P/E/G ratio of 0.95 and a beta of 0.89. Principal Financial Group has a 52 week low of $75.00 and a 52 week high of $103.00.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $2.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.01 by $0.06. Principal Financial Group had a return on equity of 16.25% and a net margin of 10.10%.The business had revenue of $3.53 billion during the quarter, compared to analysts' expectations of $4.11 billion. During the same period in the previous year, the business posted $1.81 earnings per share. Equities research analysts forecast that Principal Financial Group will post 9.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Wee Yee Cheong sold 9,183 shares of the company's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $101.26, for a total value of $929,870.58. Following the completion of the sale, the insider directly 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 sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, General Counsel George Djurasovic sold 2,571 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $100.83, for a total transaction of $259,233.93. Following the transaction, the general counsel 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 SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 17,572 shares of company stock valued at $1,776,769. 1.13% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Capital Management Corp VA grew its stake in shares of Principal Financial Group by 19.2% during the 3rd quarter. Capital Management Corp VA now owns 172,736 shares of the company's stock worth $14,322,000 after acquiring an additional 27,857 shares in the last quarter. Mediolanum International Funds Ltd lifted its position in shares of Principal Financial Group by 41.5% in the third quarter. Mediolanum International Funds Ltd now owns 127,368 shares of the company's stock worth $10,504,000 after purchasing an additional 37,357 shares in the last quarter. Rakuten Investment Management Inc. acquired a new position in Principal Financial Group during the third quarter worth $18,526,000. Teacher Retirement System of Texas increased its stake in Principal Financial Group by 21.1% in the 3rd quarter. Teacher Retirement System of Texas now owns 215,843 shares of the company's stock valued at $17,896,000 after buying an additional 37,676 shares during the last quarter. Finally, AE Wealth Management LLC increased its position in shares of Principal Financial Group by 8.8% in the third quarter. AE Wealth Management LLC now owns 170,695 shares of the company's stock valued at $14,152,000 after acquiring an additional 13,795 shares during the last quarter. 75.08% of the stock is currently owned by institutional investors.

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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