Principal Financial Group (NASDAQ:PFG) Sets New 1-Year High - Still a Buy?

Key Points

• Shares hit a new 52-week high of $101.70 and last traded around $101.29, with a market cap of about $21.96 billion.
• Wall Street has a consensus rating of Hold with an average price target of $95.33—below the current share price—after most analysts issued Hold/Neutral ratings.
• Q1 EPS of $2.07 beat estimates ($2.01) while revenue missed ($3.53B vs. $4.11B), and the company raised its quarterly dividend to $0.82 (annual $3.28, ~3.2% yield).

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) shares hit a new 52-week high during mid-day trading on Friday . The company traded as high as $101.70 and last traded at $101.2940, with a volume of 171581 shares traded. The stock had previously closed at $100.91.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on PFG shares. UBS Group upped their price target on Principal Financial Group from $92.00 to $94.00 and gave the company a "neutral" rating in a research note on Thursday, April 9th. Morgan Stanley lifted their price objective on shares of Principal Financial Group from $93.00 to $95.00 and gave the stock an "equal weight" rating in a research note on Tuesday, March 3rd. Wells Fargo & Company lowered their target price on shares of Principal Financial Group from $91.00 to $87.00 and set an "equal weight" rating for the company in a research note on Friday, April 10th. Bank of America cut their target price on shares of Principal Financial Group from $96.00 to $92.00 and set a "neutral" rating on the stock in a report on Tuesday, April 14th. Finally, Barclays lifted their price target on shares of Principal Financial Group from $85.00 to $87.00 and gave the stock an "underweight" rating in a research report on Friday, April 24th. Two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $95.33.

Principal Financial Group Price Performance

The company has a debt-to-equity ratio of 0.33, a current ratio of 0.24 and a quick ratio of 0.27. The company's 50-day moving average price is $92.37 and its 200-day moving average price is $89.20. The company has a market cap of $21.96 billion, a P/E ratio of 14.50, a P/E/G ratio of 0.94 and a beta of 0.87.

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

Principal Financial Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Monday, June 1st will be issued a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 3.2%. This is a positive change from Principal Financial Group's previous quarterly dividend of $0.80. The ex-dividend date is Monday, June 1st. Principal Financial Group's dividend payout ratio is presently 45.78%.

Insider Activity

In other Principal Financial Group news, General Counsel George Djurasovic sold 2,571 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $100.83, for a total value of $259,233.93. Following the sale, the general counsel owned 21,906 shares in the company, valued at approximately $2,208,781.98. The trade was a 10.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Wee Yee Cheong sold 1,080 shares of the company's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $101.00, for a total value of $109,080.00. Following the transaction, the insider directly owned 91,108 shares of the company's stock, valued at approximately $9,201,908. This trade represents a 1.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 3,652 shares of company stock valued at $368,414 over the last ninety days. 1.13% of the stock is owned by insiders.

Institutional Trading of Principal Financial Group

Institutional investors have recently made changes to their positions in the business. Simplicity Wealth LLC bought a new position in Principal Financial Group in the first quarter valued at $214,000. Conning Inc. lifted its position in Principal Financial Group by 8.1% during the 1st quarter. Conning Inc. now owns 398,470 shares of the company's stock worth $35,906,000 after buying an additional 29,707 shares in the last quarter. Sequoia Financial Advisors LLC boosted its stake in shares of Principal Financial Group by 6.0% during the 1st quarter. Sequoia Financial Advisors LLC now owns 15,659 shares of the company's stock worth $1,411,000 after buying an additional 884 shares during the last quarter. Accredited Investors Inc. acquired a new position in shares of Principal Financial Group during the 1st quarter worth about $258,000. Finally, Beacon Financial Group grew its holdings in shares of Principal Financial Group by 2.8% in the 1st quarter. Beacon Financial Group now owns 4,451 shares of the company's stock valued at $401,000 after acquiring an additional 120 shares in the last quarter. Institutional investors own 75.08% of the company's stock.

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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