Prudential Financial (NYSE:PRU) Cut to "Hold" at Jefferies Financial Group

Key Points

• Jefferies downgraded Prudential from "buy" to "hold" with a $98 price target (~1.7% upside), and multiple brokers have cut targets leaving the consensus rating at "Reduce" with an average price target of $105.36.
• Prudential extended a voluntary sales suspension in Japan amid an internal probe and now expects a roughly $525M–$575M pre‑tax adjusted operating income drag in 2026, weighing on near‑term earnings and valuation.
• Despite the headwinds, insiders including Insurance Co Of Ame Prudential bought about 1.408 million shares (~$35.15M) in the last three months, increasing insider ownership.

Prudential Financial (NYSE:PRU - Get Free Report) was downgraded by Jefferies Financial Group from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Wednesday, Marketbeat.com reports. They presently have a $98.00 price objective on the financial services provider's stock. Jefferies Financial Group's price target points to a potential upside of 1.67% from the stock's current price.

A number of other brokerages also recently commented on PRU. Wells Fargo & Company lowered their price objective on Prudential Financial from $103.00 to $95.00 and set an "underweight" rating for the company in a research report on Friday, April 10th. UBS Group lowered their price objective on Prudential Financial from $105.00 to $98.00 and set a "neutral" rating for the company in a research report on Thursday, April 9th. JPMorgan Chase & Co. lowered their price objective on Prudential Financial from $133.00 to $127.00 and set a "neutral" rating for the company in a research report on Wednesday, February 4th. Evercore reissued a "negative" rating on shares of Prudential Financial in a research report on Friday, March 6th. Finally, Morgan Stanley lowered their price objective on Prudential Financial from $120.00 to $111.00 and set an "equal weight" rating for the company in a research report on Tuesday, March 3rd. Ten research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $105.36.

Prudential Financial Stock Performance

Shares of Prudential Financial stock opened at $96.39 on Wednesday. Prudential Financial has a one year low of $91.89 and a one year high of $119.76. The company has a market cap of $33.53 billion, a PE ratio of 9.64, a P/E/G ratio of 1.31 and a beta of 0.95. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.16 and a current ratio of 0.16. The business has a 50-day simple moving average of $98.13 and a 200-day simple moving average of $104.92.

Prudential Financial (NYSE:PRU - Get Free Report) last announced its quarterly earnings data on Tuesday, February 3rd. The financial services provider reported $3.30 EPS for the quarter, missing analysts' consensus estimates of $3.37 by ($0.07). Prudential Financial had a return on equity of 16.32% and a net margin of 6.20%.The company had revenue of $14.52 billion for the quarter, compared to analyst estimates of $14.48 billion. During the same period in the prior year, the firm posted $2.96 earnings per share. On average, equities research analysts forecast that Prudential Financial will post 14.05 EPS for the current fiscal year.

Insiders Place Their Bets

In other Prudential Financial news, major shareholder Insurance Co Of Ame Prudential bought 1,406,739 shares of the firm's stock in a transaction that occurred on Friday, January 23rd. The stock was purchased at an average price of $24.87 per share, for a total transaction of $34,985,598.93. Following the completion of the purchase, the insider directly owned 7,709,624 shares in the company, valued at $191,738,348.88. This trade represents a 22.32% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Jacques Chappuis bought 1,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average price of $100.97 per share, with a total value of $100,970.00. Following the purchase, the executive vice president owned 1,000 shares of the company's stock, valued at $100,970. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 1,408,389 shares of company stock worth $35,154,439 in the last three months. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Prudential Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PRU. Jessup Wealth Management Inc purchased a new stake in Prudential Financial in the fourth quarter valued at approximately $25,000. Garton & Associates Financial Advisors LLC purchased a new stake in Prudential Financial in the fourth quarter valued at approximately $26,000. Salomon & Ludwin LLC lifted its stake in Prudential Financial by 98.3% in the fourth 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. Lodestone Wealth Management LLC purchased a new stake in Prudential Financial in the fourth quarter valued at approximately $28,000. Finally, Coston McIsaac & Partners lifted its stake in Prudential Financial by 93.4% in the fourth quarter. Coston McIsaac & Partners now owns 265 shares of the financial services provider's stock valued at $29,000 after buying an additional 128 shares during the last quarter. Hedge funds and other institutional investors own 56.83% of the company's stock.

Key Headlines Impacting Prudential Financial

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

• Positive Sentiment: Prudential emphasizes it will only resume Japan sales when governance, compliance and oversight meet standards, and frames the move as part of foundational reforms — a sign management is prioritizing long‑term franchise protection over short‑term revenue. Prudential of Japan Extends Voluntary Sales Suspension
• Neutral Sentiment: Company formally announced a 180‑day extension to the voluntary sales suspension at Prudential of Japan (following the prior 90‑day pause) — a confirmed timeline extension that gives management time to complete remediation. Prudential of Japan Extends Voluntary Sales Suspension
• Negative Sentiment: Management now expects a larger 2026 pre‑tax adjusted operating income drag of roughly $525M–$575M from the Japan sales pause, directly pressuring near‑term earnings and valuation. Prudential Outlines Earnings Hit After Suspension of New Business In Japan
• Negative Sentiment: Media (Nikkei/Bloomberg/Barron’s) report an internal probe into alleged misconduct at the Japan unit and Prudential has pulled near‑term growth targets — heightening regulatory, remediation and reputational risks. Prudential Japan unit probed — Nikkei
• Negative Sentiment: Analysts have trimmed targets and adopted more cautious stances after the headlines and updated supplement disclosures; that, plus restated reporting items, has amplified selling pressure. Analyst reaction & price-target moves

About Prudential Financial

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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