Prudential Financial (NYSE:PRU) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down: Prudential opened at $98.50 vs. a prior close of $102.60 (last trade $98.19), down about 5.5% with ~925,284 shares traded and 50/200‑day SMAs of $98.27/$104.97.
• Analysts have trimmed targets (JPMorgan to $127, UBS to $98, Barclays to $110, BofA to $104) and the consensus rating is "Reduce" with an average target of $108 (ten Holds, two Sells).
• Prudential raised its quarterly dividend to $1.40 ($5.60 annualized) for a 5.8% yield, and insiders have been net buyers recently, acquiring about 1,408,389 shares (~$35.15M) over the past 90 days.

Prudential Financial, Inc. (NYSE:PRU - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $102.60, but opened at $98.50. Prudential Financial shares last traded at $98.1920, with a volume of 925,284 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. JPMorgan Chase & Co. decreased their target price on shares of Prudential Financial from $133.00 to $127.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 4th. UBS Group decreased their target price on shares of Prudential Financial from $105.00 to $98.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Barclays cut their price target on Prudential Financial from $119.00 to $110.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 8th. Bank of America cut their target price on shares of Prudential Financial from $112.00 to $104.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Finally, Wall Street Zen downgraded shares of Prudential Financial from a "buy" rating to a "hold" rating in a research note on Saturday, January 10th. Ten research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $108.00.

Prudential Financial Stock Down 5.5%

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 company has a market cap of $33.72 billion, a PE ratio of 9.72, a PEG ratio of 1.30 and a beta of 0.95. The firm has a fifty day simple moving average of $98.27 and a 200 day simple moving average of $104.97.

Prudential Financial (NYSE:PRU - Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The financial services provider reported $3.30 EPS for the quarter, missing the consensus estimate of $3.37 by ($0.07). Prudential Financial had a net margin of 6.20% and a return on equity of 16.32%. The business had revenue of $14.52 billion during the quarter, compared to analysts' expectations of $14.48 billion. During the same quarter last year, the firm earned $2.96 EPS. Equities research analysts predict that Prudential Financial, Inc. will post 14.05 EPS for the current year.

Prudential Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Tuesday, February 17th were issued a dividend of $1.40 per share. This represents a $5.60 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date was Tuesday, February 17th. This is an increase from Prudential Financial's previous quarterly dividend of $1.35. Prudential Financial's dividend payout ratio (DPR) is presently 56.00%.

Insider Transactions at Prudential Financial

In other news, Director Thomas D. Stoddard bought 250 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was acquired at an average price of $102.97 per share, for a total transaction of $25,742.50. Following the acquisition, the director owned 250 shares of the company's stock, valued at $25,742.50. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Joseph J. Wolk purchased 400 shares of the firm's stock in a transaction on Wednesday, February 11th. The stock was bought at an average price of $105.32 per share, with a total value of $42,128.00. Following the acquisition, the director owned 400 shares in the company, valued at $42,128. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 1,408,389 shares of company stock worth $35,154,439 over the last 90 days. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Prudential Financial

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Foster & Motley Inc. boosted its holdings in Prudential Financial by 6.4% in the 1st quarter. Foster & Motley Inc. now owns 50,644 shares of the financial services provider's stock worth $4,947,000 after acquiring an additional 3,054 shares during the period. Louisiana State Employees Retirement System purchased a new position in Prudential Financial in the 1st quarter worth approximately $1,729,000. Kestra Private Wealth Services LLC raised its position in shares of Prudential Financial by 9.1% in the 1st quarter. Kestra Private Wealth Services LLC now owns 16,787 shares of the financial services provider's stock valued at $1,640,000 after purchasing an additional 1,399 shares in the last quarter. MBM Wealth Consultants LLC raised its position in shares of Prudential Financial by 12.3% in the 1st quarter. MBM Wealth Consultants LLC now owns 4,570 shares of the financial services provider's stock valued at $446,000 after purchasing an additional 500 shares in the last quarter. Finally, Davis Investment Partners LLC acquired a new position in shares of Prudential Financial in the 1st quarter valued at approximately $214,000. Hedge funds and other 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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