Wells Fargo & Company Forecasts Strong Price Appreciation for Prudential Financial (NYSE:PRU) Stock

Key Points

• Wells Fargo raised Prudential Financial’s price target from $103 to $110 but maintained an “underweight” rating, implying roughly 11.7% downside from the stock’s $124.57 opening price.
• Analyst sentiment remains cautious: Prudential has a consensus “Reduce” rating and an average target price of $108.31, with one Buy, eleven Hold and five Sell ratings.
• Prudential exceeded quarterly earnings expectations, reporting EPS of $4.08 versus the $3.52 consensus estimate, although revenue of $14.15 billion fell short of forecasts. Institutional investors own 56.83% of the company, while recent insider transactions included stock sales.

Prudential Financial (NYSE:PRU - Get Free Report) had its price objective lifted by equities research analysts at Wells Fargo & Company from $103.00 to $110.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has an "underweight" rating on the financial services provider's stock. Wells Fargo & Company's target price would suggest a potential downside of 11.70% from the company's current price.

A number of other research firms have also recently commented on PRU. Keefe, Bruyette & Woods upped their target price on shares of Prudential Financial from $113.00 to $123.00 and gave the company a "market perform" rating in a research report on Tuesday, August 11th. BMO Capital Markets dropped their price objective on Prudential Financial from $91.00 to $87.00 and set an "underperform" rating for the company in a research note on Thursday, April 23rd. Jefferies Financial Group raised their target price on Prudential Financial from $105.00 to $110.00 and gave the company a "hold" rating in a report on Friday, July 10th. Morgan Stanley restated an "underweight" rating and issued a $92.00 price objective (down from $106.00) on shares of Prudential Financial in a report on Monday, May 4th. Finally, TD Cowen upped their price objective on Prudential Financial from $102.00 to $114.00 and gave the stock a "hold" rating in a research report on Wednesday, July 22nd. One research analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $108.31.

Prudential Financial Trading Up 0.0%

PRU opened at $124.57 on Wednesday. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.16 and a quick ratio of 0.16. The company's 50 day simple moving average is $115.78 and its two-hundred day simple moving average is $105.44. The firm has a market capitalization of $42.98 billion, a price-to-earnings ratio of 11.30, a price-to-earnings-growth ratio of 2.38 and a beta of 0.84. Prudential Financial has a 1-year low of $91.89 and a 1-year high of $127.72.

Prudential Financial (NYSE:PRU - Get Free Report) last issued its earnings results on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.52 by $0.56. Prudential Financial had a return on equity of 16.68% and a net margin of 6.51%.The company had revenue of $14.15 billion during the quarter, compared to analysts' expectations of $14.36 billion. During the same period in the prior year, the business earned $3.58 EPS. Analysts expect that Prudential Financial will post 14.17 EPS for the current fiscal year.

Insider Activity

In other Prudential Financial news, EVP Ann M. Kappler sold 7,652 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $125.01, for a total transaction of $956,576.52. Following the completion of the transaction, the executive vice president owned 14,407 shares in the company, valued at approximately $1,801,019.07. This represents a 34.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $24.75, for a total transaction of $5,314,963.50. Following the completion of the sale, the insider directly owned 7,973,657 shares in the company, valued at approximately $197,348,010.75. The trade was a 2.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Prudential Financial

Institutional investors have recently added to or reduced their stakes in the business. Jessup Wealth Management Inc acquired a new position in Prudential Financial during the fourth quarter worth $25,000. Archer Investment Corp acquired a new stake in Prudential Financial in the second quarter valued at $26,000. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Prudential Financial during the 4th quarter worth $26,000. Salomon & Ludwin LLC grew its stake in shares of Prudential Financial by 98.3% during the 4th 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. Finally, SJS Investment Consulting Inc. increased its holdings in shares of Prudential Financial by 93.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 278 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 134 shares in the last quarter. Hedge funds and other institutional investors own 56.83% of the company's stock.

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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