Principal Financial Group (NASDAQ:PFG) Reaches New 52-Week High on Analyst Upgrade

Key Points

• Principal Financial Group shares reached a new 52-week high of $114.95 after Bank of America raised its price target from $94 to $104, while maintaining an “underperform” rating.
• Second-quarter adjusted earnings were $2.50 per share, beating the $2.33 consensus and rising from $2.16 a year earlier. However, revenue of $3.99 billion fell short of the $4.11 billion estimate.
• The quarterly dividend increased 2.4% to $0.84 per share, equal to a $3.36 annualized payout and an indicated yield of about 2.9%.

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday after Bank of America raised their price target on the stock from $94.00 to $104.00. Bank of America currently has an underperform rating on the stock. Principal Financial Group traded as high as $114.95 and last traded at $114.35, with a volume of 76030 shares. The stock had previously closed at $114.09.

PFG has been the subject of several other research reports. 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 note on Monday, July 6th. Piper Sandler upped their price target on Principal Financial Group from $113.00 to $125.00 and gave the company an "overweight" rating in a research note on Wednesday, June 24th. Barclays increased their price target on Principal Financial Group from $87.00 to $92.00 and gave the stock an "underweight" rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. boosted their price objective on shares of Principal Financial Group from $101.00 to $106.00 and gave the company a "neutral" rating in a report on Tuesday, July 21st. Finally, Raymond James Financial cut shares of Principal Financial Group from a "strong-buy" rating to an "outperform" rating and upped their target price for the company from $99.00 to $111.00 in a research report on Tuesday, May 19th. 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 stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $105.75.

Insider Activity at Principal Financial Group

In other Principal Financial Group news, insider Wee Yee Cheong sold 9,183 shares of the business's stock in a transaction 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 transaction, the insider owned 77,188 shares in the company, valued at $7,816,056.88. The trade was a 10.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders have sold a total of 24,666 shares of company stock valued at $2,516,588 over the last ninety days. Company insiders own 1.13% of the company's stock.

Key Headlines Impacting Principal Financial Group

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

• Positive Sentiment: Q2 earnings exceeded expectations. Non-GAAP operating earnings were $2.50 per share, above the $2.33 consensus and up from $2.16 a year earlier. Results benefited from stronger underwriting revenue and margin expansion, although expenses were higher. PFG Q2 Earnings Beat on Solid Underwriting, Revenues Rise Year over Year
• Positive Sentiment: Management highlighted strong earnings growth on the Q2 call. The earnings presentation and conference call provided additional detail on operating performance and the company’s outlook, reinforcing the favorable profit trend. Principal Financial Group Q2 2026 Earnings Call Highlights
• Positive Sentiment: Quarterly dividend raised 2.4%. PFG increased its dividend to $0.84 per share from $0.82, payable September 25 to shareholders of record September 3. The indicated yield is approximately 2.9%, improving the stock’s income appeal. Principal Financial Group Raises Income Appeal
• Neutral Sentiment: Headline results were mixed. Revenue increased year over year but reached $3.99 billion, below the $4.11 billion analyst estimate. Net income attributable to PFG was $403 million, while adjusted operating earnings excluding exited business were $547 million. Principal Financial Group Announces Second Quarter 2026 Results
• Negative Sentiment: Bank of America remains cautious. The firm raised its price target from $94 to $104 but retained an “underperform” rating, implying roughly 8.8% downside from the recently quoted $114.09 price. This may weigh on sentiment after PFG’s strong run. Bank of America Price Target Update

Institutional Inflows and Outflows

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

Principal Financial Group Stock Up 0.4%

The company has a current ratio of 0.27, a quick ratio of 0.27 and a debt-to-equity ratio of 0.33. The company has a market cap of $24.74 billion, a price-to-earnings ratio of 16.25, a PEG ratio of 1.07 and a beta of 0.88. The firm's fifty day simple moving average is $108.57 and its 200 day simple moving average is $98.73.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last announced its quarterly earnings data on Monday, July 27th. The company reported $2.50 EPS for the quarter, beating analysts' consensus estimates of $2.33 by $0.17. Principal Financial Group had a net margin of 9.93% and a return on equity of 16.61%. The company had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $4.11 billion. During the same period in the prior year, the firm posted $2.16 EPS. Sell-side analysts predict that Principal Financial Group, Inc. will post 9.45 earnings per share for the current year.

Principal Financial Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Thursday, September 3rd will be issued a $0.84 dividend. This represents a $3.36 annualized dividend and a yield of 2.9%. 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. Principal Financial Group's dividend payout ratio is currently 46.92%.

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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