Prudential Financial, Inc. (NYSE:PRU) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analyst sentiment is cautious: Seventeen brokerages give Prudential Financial an average “Reduce” rating, including five sells, 11 holds and one buy. The average 12-month price target is $105.46, below the stock’s reported $122.36 opening price.
• Prudential’s latest quarter exceeded expectations, with EPS of $3.61 versus a $3.09 consensus and revenue of $15.23 billion versus $14.10 billion expected. Strength in Retirement, Individual Life and PGIM may help offset weakness in Group Insurance.
• The company maintains an attractive dividend, paying $1.40 per quarter for an annualized yield of about 4.6%, but a major shareholder recently sold 214,746 shares, reducing its position by 2.62%.

Shares of Prudential Financial, Inc. (NYSE:PRU - Get Free Report) have been assigned an average rating of "Reduce" from the seventeen brokerages that are presently covering the stock, Marketbeat.com reports. Five investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and one has given a buy rating to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $105.4615.

A number of research firms have recently issued reports on PRU. Wells Fargo & Company increased their target price on Prudential Financial from $100.00 to $103.00 and gave the company an "underweight" rating in a report on Thursday, July 9th. Mizuho upped their price target on Prudential Financial from $101.00 to $109.00 and gave the company a "neutral" rating in a research report on Thursday, July 9th. Bank of America reduced their price target on shares of Prudential Financial from $112.00 to $104.00 and set a "neutral" rating for the company in a research report on Tuesday, April 14th. TD Cowen raised their price target on shares of Prudential Financial from $102.00 to $114.00 and gave the stock a "hold" rating in a report on Wednesday, July 22nd. Finally, Wall Street Zen raised shares of Prudential Financial from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th.

Insider Activity

In other news, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $24.75, for a total transaction of $5,314,963.50. Following the sale, the insider owned 7,973,657 shares of the company's stock, valued at approximately $197,348,010.75. This trade represents a 2.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.05% of the company's stock.

Institutional Trading of Prudential Financial

A number of hedge funds and other institutional investors have recently made changes to their positions in PRU. Jessup Wealth Management Inc bought a new position in shares of Prudential Financial in the fourth quarter worth about $25,000. Garton & Associates Financial Advisors LLC bought a new position in Prudential Financial in the 4th quarter valued at $26,000. Salomon & Ludwin LLC boosted its position in Prudential Financial by 98.3% in the 4th quarter. Salomon & Ludwin LLC now owns 230 shares of the financial services provider's stock valued at $27,000 after buying an additional 114 shares during the last quarter. Basepoint Wealth LLC bought a new stake in shares of Prudential Financial during the fourth quarter worth $30,000. Finally, Coston McIsaac & Partners raised its holdings in Prudential Financial by 93.4% during the 4th quarter. Coston McIsaac & Partners now owns 265 shares of the financial services provider's stock worth $29,000 after purchasing an additional 128 shares during the last quarter. 56.83% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Prudential Financial

Here are the key news stories impacting Prudential Financial this week:

• Positive Sentiment: Analysts expect second-quarter performance to benefit from continued strength in Retirement, Individual Life and PGIM. The earnings preview suggests these businesses could help offset weakness in Group Insurance and support another solid quarterly result. Will Prudential Financial Pull Off a Surprise This Earnings Season?
• Positive Sentiment: Prudential’s latest reported quarter exceeded expectations, with EPS of $3.61 versus the $3.09 consensus estimate and revenue of $15.23 billion versus expectations of $14.10 billion. Analysts project approximately $13.83 in full-year EPS, while the company’s $1.40 quarterly dividend provides a roughly 4.6% annualized yield.
• Neutral Sentiment: Wall Street is focused on key operating metrics for the quarter ended June 2026, including trends across retirement, life insurance, asset management and group insurance. The metric-focused preview highlights the potential for segment-level results to matter as much as headline revenue and earnings. Unlocking Q2 Potential of Prudential
• Neutral Sentiment: PRU is trading near its 12-month high after a strong advance above its 50-day and 200-day moving averages. That momentum is supportive, but it also raises the bar for an earnings beat or improved outlook.
• Negative Sentiment: Major shareholder Insurance Co. of America Prudential sold 214,746 shares, reducing its position by 2.62%. Although the shareholder retained nearly 8.0 million shares, the transaction may create a modest overhang and reinforce profit-taking concerns. SEC filing
• Negative Sentiment: Analyst sentiment remains cautious: MarketBeat reports an average rating of “Reduce” and an average price target of $105.46, below the current trading range. Group Insurance pressure and the possibility of limited upside relative to consensus targets may be contributing to the stock’s weakness.

Prudential Financial Trading Up 0.2%

Shares of NYSE PRU opened at $122.36 on Monday. The company has a market cap of $42.46 billion, a price-to-earnings ratio of 12.59, a price-to-earnings-growth ratio of 2.42 and a beta of 0.84. Prudential Financial has a 12-month low of $91.89 and a 12-month high of $124.57. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.58. The stock's 50 day simple moving average is $110.87 and its 200 day simple moving average is $104.44.

Prudential Financial (NYSE:PRU - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $3.61 EPS for the quarter, beating analysts' consensus estimates of $3.09 by $0.52. Prudential Financial had a return on equity of 16.33% and a net margin of 5.83%.The company had revenue of $15.23 billion for the quarter, compared to analyst estimates of $14.10 billion. During the same period last year, the company earned $3.29 earnings per share. Equities research analysts expect that Prudential Financial will post 13.83 EPS for the current year.

Prudential Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Tuesday, May 26th were issued a dividend of $1.40 per share. This represents a $5.60 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date was Tuesday, May 26th. Prudential Financial's dividend payout ratio is 57.61%.

Prudential Financial Company Profile

Prudential Financial, Inc, headquartered in Newark, New Jersey, is a diversified financial services company with roots dating to 1875. The firm provides a range of insurance, retirement and investment products aimed at helping individual and institutional clients manage risk, accumulate and protect wealth, and plan for retirement. Prudential's long history in life insurance and related financial services has positioned it as a major participant in the U.S. insurance market and a provider of services to a broad client base.

Prudential's core business activities include individual life insurance, annuities, retirement solutions and group insurance products for employers.

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