Principal Financial Group (PFG) Rating Reiterated by Wells Fargo
Principal Financial Group (NYSE:PFG)‘s stock had its “hold” rating restated by equities researchers at Wells Fargo in a research report issued on Thursday. They currently have a $68.00 price objective on the financial services provider’s stock. Wells Fargo’s price objective indicates a potential upside of 12.47% from the company’s current price.
The analysts wrote, “We would normalize to $1.36 after accounting for mortality gains in Retirement and Income Solutions (RIS)-Spread, negative encaje returns in Principal International and favorable claims experience in Specialty Benefit. Principal walked through unusual items in a segment in a slide presentation (see Figure 1 for a detailed view of actual results versus our expectations). Given traditional Q1 unfavorable seasonality, we don’t view the $1.36 as a “run-rate” off which to use as a starting point for Q2 estimates. The normalized beat in Q1 was driven by lower multiple segments (Specialty Benefits and Corporate), which are likely not sustainable. All in, while certainly better than Q4 2017 results, the underlying earnings power exhibited in Q1 does not at first look seem like enough to change our investment thesis.””
Other analysts have also issued reports about the stock. Goldman Sachs upgraded shares of Principal Financial Group from a “neutral” rating to a “buy” rating in a research note on Tuesday, January 9th. Zacks Investment Research upgraded shares of Principal Financial Group from a “hold” rating to a “buy” rating and set a $79.00 target price on the stock in a research note on Thursday, January 4th. Morgan Stanley cut their target price on shares of Principal Financial Group from $79.00 to $77.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 5th. Keefe, Bruyette & Woods restated a “hold” rating and set a $76.00 target price on shares of Principal Financial Group in a research note on Wednesday, January 31st. Finally, JPMorgan Chase upgraded shares of Principal Financial Group from an “underweight” rating to a “neutral” rating and set a $70.00 target price on the stock in a research note on Monday, February 12th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. Principal Financial Group has a consensus rating of “Hold” and a consensus target price of $71.18.
Principal Financial Group (NYSE:PFG) last released its earnings results on Thursday, April 26th. The financial services provider reported $1.40 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.35 by $0.05. Principal Financial Group had a net margin of 12.35% and a return on equity of 13.55%. The firm had revenue of $2.91 billion for the quarter, compared to analyst estimates of $3.54 billion. During the same period in the prior year, the firm earned $1.27 earnings per share. sell-side analysts forecast that Principal Financial Group will post 5.22 earnings per share for the current year.
In other Principal Financial Group news, insider Luis E. Valdes sold 27,662 shares of the stock in a transaction that occurred on Monday, February 26th. The shares were sold at an average price of $64.02, for a total value of $1,770,921.24. The sale was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 1.50% of the company’s stock.
Institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC purchased a new position in Principal Financial Group in the fourth quarter valued at approximately $174,000. Avestar Capital LLC purchased a new position in Principal Financial Group in the fourth quarter valued at approximately $169,000. Acadian Asset Management LLC increased its stake in Principal Financial Group by 215.0% in the fourth quarter. Acadian Asset Management LLC now owns 2,611 shares of the financial services provider’s stock valued at $184,000 after purchasing an additional 1,782 shares during the last quarter. Resources Investment Advisors Inc. increased its stake in Principal Financial Group by 268.6% in the fourth quarter. Resources Investment Advisors Inc. now owns 2,997 shares of the financial services provider’s stock valued at $155,000 after purchasing an additional 2,184 shares during the last quarter. Finally, Synovus Financial Corp purchased a new position in Principal Financial Group in the fourth quarter valued at approximately $214,000. Institutional investors own 68.64% of the company’s stock.
About Principal Financial Group
Principal Financial Group, Inc is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance. Its segments include Retirement and Income Solutions; Principal Global Investors, Principal International; U.S. Insurance Solutions, and Corporate.
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