Principal Financial Group Inc. (PFG) Downgraded by Zacks Investment Research to Sell
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.”
A number of other analysts also recently commented on the company. Goldman Sachs Group Inc. boosted their target price on Principal Financial Group from $40.00 to $45.00 and gave the stock a sell rating in a research report on Friday, September 23rd. Wells Fargo & Co. reiterated an outperform rating on shares of Principal Financial Group in a research report on Friday, September 23rd. RBC Capital Markets set a $52.00 target price on Principal Financial Group and gave the stock a buy rating in a research report on Friday, August 19th. Deutsche Bank AG set a $48.00 target price on Principal Financial Group and gave the stock a hold rating in a research 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 research report on Sunday, July 31st. Four analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have assigned a buy rating to the stock. The stock currently has an average rating of Hold and an average price target of $48.43.
Shares of Principal Financial Group (NYSE:PFG) opened at 51.56 on Tuesday. The company’s 50 day moving average price is $49.00 and its 200-day moving average price is $44.31. Principal Financial Group has a 12 month low of $33.09 and a 12 month high of $52.21. The firm has a market capitalization of $14.83 billion, a P/E ratio of 12.26 and a beta of 1.66.
Principal Financial Group (NYSE:PFG) last posted its quarterly earnings results on Thursday, July 28th. The company reported $1.15 earnings per share for the quarter, beating the Zacks’ 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 period in the prior year, the firm earned $1.09 EPS. On average, equities analysts predict that Principal Financial Group will post $4.37 earnings per share for the current fiscal year.
The company also recently announced 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%. The ex-dividend date of this dividend was Wednesday, August 31st. This is an increase from Principal Financial Group’s previous quarterly dividend of $0.39. Principal Financial Group’s dividend payout ratio (DPR) is currently 38.86%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. increased its position in Principal Financial Group by 15.2% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 56,228 shares of the company’s stock worth $2,218,000 after buying an additional 7,436 shares in the last quarter. OMERS ADMINISTRATION Corp purchased a new position in Principal Financial Group during the first quarter worth approximately $1,692,000. Canada Pension Plan Investment Board increased its position in Principal Financial Group by 22.7% in the first quarter. Canada Pension Plan Investment Board now owns 278,079 shares of the company’s stock worth $10,970,000 after buying an additional 51,500 shares in the last quarter. ING Groep NV purchased a new position in Principal Financial Group during the first quarter worth approximately $246,000. Finally, Advisor Partners LLC purchased a new position in Principal Financial Group during the first quarter worth approximately $207,000. 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.
Receive News & Stock Ratings for Principal Financial Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Principal Financial Group Inc. and related stocks with our FREE daily email newsletter.