Principal Financial Group (NASDAQ:PFG) Sets New 52-Week High - Still a Buy?

Key Points

• Principal Financial Group shares hit a new 52-week high, trading as high as $103.00 after closing at $101.14 previously, signaling strong recent momentum in the stock.
• The company beat earnings expectations in its latest quarter, reporting $2.07 EPS versus estimates of $2.01, though revenue came in below analyst forecasts.
• Principal raised its quarterly dividend to $0.82 per share from $0.80, implying an annualized yield of about 3.2% as the company continues to return cash to shareholders.

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report)'s share price reached a new 52-week high on Wednesday . The company traded as high as $103.00 and last traded at $102.9860, with a volume of 224011 shares traded. The stock had previously closed at $101.14.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on PFG. UBS Group boosted their target price on shares of Principal Financial Group from $92.00 to $94.00 and gave the stock a "neutral" rating in a research report on Thursday, April 9th. Weiss Ratings lowered shares of Principal Financial Group from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 1st. Morgan Stanley boosted their target price on shares of Principal Financial Group from $93.00 to $95.00 and gave the stock an "equal weight" rating in a research report on Tuesday, March 3rd. Evercore set a $108.00 target price on shares of Principal Financial Group in a research report on Monday, April 27th. Finally, Bank of America cut their target price on shares of Principal Financial Group from $96.00 to $92.00 and set a "neutral" rating for the company in a research report on Tuesday, April 14th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Principal Financial Group currently has a consensus rating of "Hold" and a consensus target price of $96.90.

Principal Financial Group Price Performance

The stock's 50-day moving average price is $93.76 and its 200 day moving average price is $90.95. The firm has a market cap of $22.20 billion, a price-to-earnings ratio of 14.70, a price-to-earnings-growth ratio of 0.97 and a beta of 0.89. 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 quarterly earnings data on Wednesday, April 29th. The company reported $2.07 EPS for the quarter, beating analysts' consensus estimates of $2.01 by $0.06. The business had revenue of $3.53 billion during the quarter, compared to analyst estimates 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 quarter in the prior year, the business earned $1.81 earnings per share. Equities research analysts predict that Principal Financial Group, Inc. will post 9.31 earnings per share for the current year.

Principal Financial Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Monday, June 1st will be given a dividend of $0.82 per share. This is an increase from Principal Financial Group's previous quarterly dividend of $0.80. This represents a $3.28 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Monday, June 1st. Principal Financial Group's dividend payout ratio (DPR) is currently 45.78%.

Insider Transactions at Principal Financial Group

In other news, insider Wee Yee Cheong sold 9,183 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $101.26, for a total transaction of $929,870.58. Following the completion of the transaction, the insider owned 77,188 shares of the company's stock, valued at approximately $7,816,056.88. This represents a 10.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel George Djurasovic sold 2,571 shares of the company's stock in a transaction dated 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 directly owned 21,906 shares of the company's stock, valued at $2,208,781.98. This represents a 10.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 17,572 shares of company stock valued at $1,776,769 in the last ninety days. 1.13% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. DV Equities LLC bought a new stake in Principal Financial Group in the fourth quarter valued at about $25,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in Principal Financial Group in the fourth quarter valued at about $26,000. Hilton Head Capital Partners LLC bought a new stake in Principal Financial Group in the fourth quarter valued at about $26,000. Valley Wealth Managers Inc. bought a new stake in Principal Financial Group in the first quarter valued at about $27,000. Finally, MBM Wealth Consultants LLC bought a new stake in Principal Financial Group in the first quarter valued at about $28,000. Institutional investors and hedge funds own 75.08% of the company's stock.

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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