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

Key Points

• Analyst sentiment is cautious: Prudential Financial has a consensus rating of "Reduce" from 16 analysts, with five sell ratings and eleven hold ratings. The average 12-month price target is about $102.08, below the stock’s recent trading level.
• Recent earnings were stronger than expected: Prudential reported $3.61 EPS versus the $3.09 consensus estimate, and revenue of $15.23 billion topped expectations. Analysts currently expect full-year EPS of $13.81.
• The company continues to reward shareholders: Prudential paid a quarterly dividend of $1.40 per share, equal to a 5.0% annualized yield. Its dividend payout ratio stands at 57.61%.

Shares of Prudential Financial, Inc. (NYSE:PRU - Get Free Report) have been given a consensus recommendation of "Reduce" by the sixteen analysts that are currently covering the company, MarketBeat.com reports. Five investment analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $102.0833.

Several analysts have weighed in on the stock. Weiss Ratings raised shares of Prudential Financial from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, June 12th. UBS Group decreased their target price on Prudential Financial from $105.00 to $98.00 and set a "neutral" rating on the stock in a report on Thursday, April 9th. Zacks Research upgraded Prudential Financial from a "strong sell" rating to a "hold" rating in a research note on Friday, June 12th. Barclays lifted their price target on Prudential Financial from $90.00 to $92.00 and gave the company an "underweight" rating in a report on Tuesday. Finally, Keefe, Bruyette & Woods increased their price objective on shares of Prudential Financial from $100.00 to $106.00 and gave the stock a "market perform" rating in a report on Wednesday, May 13th.

Prudential Financial Price Performance

Shares of PRU stock opened at $112.74 on Thursday. The stock's fifty day simple moving average is $104.84 and its 200 day simple moving average is $104.02. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.16 and a quick ratio of 0.16. The firm has a market cap of $39.12 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 2.10 and a beta of 0.85. Prudential Financial has a one year low of $91.89 and a one year high of $119.76.

Prudential Financial (NYSE:PRU - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $3.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.09 by $0.52. Prudential Financial had a return on equity of 16.33% and a net margin of 5.83%.The firm had revenue of $15.23 billion during the quarter, compared to analyst estimates of $14.10 billion. During the same period in the prior year, the company posted $3.29 earnings per share. On average, analysts expect that Prudential Financial will post 13.81 earnings per share for the current fiscal year.

Prudential Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Tuesday, May 26th were paid a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a dividend yield of 5.0%. The ex-dividend date of this dividend was Tuesday, May 26th. Prudential Financial's dividend payout ratio is 57.61%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of PRU. Jessup Wealth Management Inc acquired a new stake in shares of Prudential Financial in the 4th quarter valued at $25,000. Garton & Associates Financial Advisors LLC bought a new position in Prudential Financial in the fourth quarter valued at about $26,000. Salomon & Ludwin LLC increased its position in Prudential Financial by 98.3% in the fourth quarter. Salomon & Ludwin LLC now owns 230 shares of the financial services provider's stock worth $27,000 after purchasing an additional 114 shares during the period. SJS Investment Consulting Inc. raised its holdings in Prudential Financial by 93.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 278 shares of the financial services provider's stock worth $27,000 after purchasing an additional 134 shares during the last quarter. Finally, Lodestone Wealth Management LLC bought a new stake in Prudential Financial during the 4th quarter worth about $28,000. Institutional investors own 56.83% of the company's stock.

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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