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

Key Points

• Principal Financial Group hit a new 52-week high after Morgan Stanley raised its price target from $107 to $112, while keeping an equal-weight rating. The stock traded as high as $112.48 and last changed hands around $112.53.
• Analyst sentiment remains mixed, with Piper Sandler boosting its target to $125 and several other firms maintaining hold/neutral stances. Overall, the stock has a consensus Hold rating and an average target price of $101.40.
• The company recently beat quarterly EPS expectations, posting $2.07 per share versus the $2.01 estimate, and also increased its quarterly dividend to $0.82 from $0.80. That puts the annualized dividend at $3.28 for a yield of about 2.9%.

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report)'s stock price reached a new 52-week high on Monday after Morgan Stanley raised their price target on the stock from $107.00 to $112.00. Morgan Stanley currently has an equal weight rating on the stock. Principal Financial Group traded as high as $112.48 and last traded at $112.5290, with a volume of 563898 shares trading hands. The stock had previously closed at $110.87.

Several other equities analysts also recently weighed in on PFG. Piper Sandler lifted their target price on Principal Financial Group from $113.00 to $125.00 and gave the company an "overweight" rating in a research report on Wednesday, June 24th. Keefe, Bruyette & Woods restated a "hold" rating and set a $92.00 price objective on shares of Principal Financial Group in a research report on Thursday, March 26th. Wells Fargo & Company decreased 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. UBS Group raised their price target on Principal Financial Group from $92.00 to $94.00 and gave the stock a "neutral" rating in a research note on Thursday, April 9th. Finally, Weiss Ratings lowered Principal Financial Group from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 1st. Three investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Principal Financial Group has a consensus rating of "Hold" and an average target price of $101.40.

Insider Buying and Selling

In related news, insider Wee Yee Cheong sold 9,183 shares of Principal Financial Group stock in a transaction on Friday, May 1st. The stock was sold at an average price of $101.26, for a total transaction of $929,870.58. Following the completion of the transaction, the insider directly owned 77,188 shares of the company's stock, valued at approximately $7,816,056.88. The trade was a 10.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, General Counsel George Djurasovic sold 2,571 shares of Principal Financial Group stock in a transaction dated Tuesday, April 28th. The stock was 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. The trade was a 10.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 28,317 shares of company stock valued at $2,884,902. Company insiders own 1.13% of the company's stock.

Hedge Funds Weigh In On Principal Financial Group

Hedge funds and other institutional investors have recently modified their holdings of the company. FAS Wealth Partners Inc. boosted its holdings in Principal Financial Group by 4.9% in the first quarter. FAS Wealth Partners Inc. now owns 38,722 shares of the company's stock valued at $3,489,000 after purchasing an additional 1,812 shares during the last quarter. NewEdge Advisors LLC increased its holdings in shares of Principal Financial Group by 3.2% in the 1st quarter. NewEdge Advisors LLC now owns 12,439 shares of the company's stock valued at $1,121,000 after acquiring an additional 384 shares during the last quarter. First Nebraska Trust Co acquired a new stake in shares of Principal Financial Group during the 1st quarter valued at approximately $223,000. Groupe la Francaise raised its holdings in shares of Principal Financial Group by 8.2% during the first quarter. Groupe la Francaise now owns 48,995 shares of the company's stock worth $4,415,000 after purchasing an additional 3,716 shares during the period. Finally, Western Wealth Management LLC acquired a new position in shares of Principal Financial Group in the 1st quarter valued at about $40,000. 75.08% of the stock is owned by institutional investors and hedge funds.

Principal Financial Group Stock Performance

The company has a market capitalization of $24.31 billion, a price-to-earnings ratio of 16.10, a P/E/G ratio of 1.11 and a beta of 0.88. The stock has a 50 day simple moving average of $104.72 and a 200 day simple moving average of $96.07. 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 (NASDAQ:PFG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $2.07 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $4.11 billion. During the same quarter in the previous year, the business earned $1.81 EPS. As a group, analysts anticipate that Principal Financial Group, Inc. will post 9.37 earnings per share for the current fiscal year.

Principal Financial Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Monday, June 1st were paid a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 2.9%. This is a boost from Principal Financial Group's previous quarterly dividend of $0.80. The ex-dividend date of this dividend was Monday, June 1st. Principal Financial Group's dividend payout ratio (DPR) 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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