According to Zacks, “Principal Financial’s investment results will likely be hurt by a soft interest rate environment, restricting any major improvement. Escalating expenses pose concerns. Going by the surprise trend, the company delivered negative surprises in three of the last four quarters. Nonetheless, the company’s focus on fee-based revenue sources has been helping it to earn steadily, and limits exposure to the interest rate environment. Annuity and insurance business also offer sustained earnings growth. The company’s inorganic story remains impressive with buyouts strengthening its international footprint. It also remains focused on effective capital deployment to enhance shareholder value. Banking on these positives, the Zacks Consensus Estimate for 2016 and 2017 witnessed upward revisions over the last 60 days.”
Several other research firms have also weighed in on PFG. Goldman Sachs Group Inc. raised their target price on Principal Financial Group from $40.00 to $45.00 and gave the company a sell rating in a report on Friday, September 23rd. Wells Fargo & Co. restated an outperform rating on shares of Principal Financial Group in a report on Friday, September 23rd. RBC Capital Markets set a $52.00 target price on Principal Financial Group and gave the company a buy rating in a report on Friday, August 19th. Deutsche Bank AG set a $48.00 target price on Principal Financial Group and gave the company a hold rating in a report on Wednesday, August 3rd. Finally, Stifel Nicolaus upgraded Principal Financial Group from a hold rating to a buy rating and set a $55.00 target price on the stock in a report on Sunday, July 31st. Four equities research analysts have rated the stock with a sell rating, seven have given a hold rating and seven have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $48.43.
Principal Financial Group (NYSE:PFG) opened at 51.56 on Tuesday. The firm’s 50-day moving average price is $49.00 and its 200-day moving average price is $44.31. The company has a market cap of $14.83 billion, a P/E ratio of 12.26 and a beta of 1.66. Principal Financial Group has a 12-month low of $33.09 and a 12-month high of $52.21.
Principal Financial Group (NYSE:PFG) last announced its quarterly earnings data on Thursday, July 28th. The company reported $1.15 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.06 by $0.09. Principal Financial Group had a return on equity of 12.52% and a net margin of 10.20%. During the same quarter last year, the business earned $1.09 earnings per share. Analysts expect that Principal Financial Group will post $4.37 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Friday, September 2nd were issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 3.21%. This is an increase from Principal Financial Group’s previous quarterly dividend of $0.39. The ex-dividend date of this dividend was Wednesday, August 31st. Principal Financial Group’s payout ratio is presently 38.86%.
Large investors have recently added to or reduced their stakes in the stock. Washington Trust Bank increased its stake in Principal Financial Group by 0.9% in the third quarter. Washington Trust Bank now owns 2,721 shares of the company’s stock worth $140,000 after buying an additional 25 shares during the last quarter. Beacon Financial Group bought a new stake in Principal Financial Group during the third quarter worth $6,706,000. Kentucky Retirement Systems Insurance Trust Fund bought a new stake in Principal Financial Group during the second quarter worth $447,000. Kentucky Retirement Systems bought a new stake in Principal Financial Group during the second quarter worth $942,000. Finally, Mason Street Advisors LLC bought a new stake in Principal Financial Group during the second quarter worth $1,493,000. 67.09% of the stock is currently owned by institutional investors.
Principal Financial Group Company Profile
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 services. The Company’s segments include Retirement and Income Solutions; Principal Global Investors, Principal International, and U.S.
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