On August 31, 2023, various research analysts published reports on the stock of Prudential Financial. The Royal Bank of Canada, for instance, increased their price target from $94.00 to $100.00 and assigned a “sector perform” rating to the stock in their report released on August 3rd. Similarly, Barclays raised their price objective from $91.00 to $101.00 and granted the stock an “equal weight” rating in a research report on August 4th.
VNET Group also reaffirmed their “maintains” rating on shares of Prudential Financial when they issued a research report on May 15th. Wells Fargo & Company followed suit by increasing their price target from $89.00 to $92.00 while assigning an “underweight” rating to the stock on August 15th. Most recently, StockNews.com initiated coverage on Prudential Financial with a “hold” rating in a report published on August 17th.
As of now, the company has received mixed ratings from investment analysts, with three analysts suggesting selling the stock, five recommending holding it, one advising buying it, and one indicating a strong buy recommendation. According to Bloomberg.com data, the average rating given to Prudential Financial is currently “Hold,” with an average price target of $101.45.
Furthermore, Prudential Financial recently announced its quarterly dividend which will be paid out on September 14th (Thursday). Shareholders recorded as of August 22nd (Tuesday) will receive a dividend amounting to $1.25 per share. This translates into an annualized dividend of $5.00 and yields approximately 5.29%. It is important to note that the ex-dividend date for this payment is set for August 21st (Monday). Consequently, Prudential Financial’s dividend payout ratio (DPR) stands at 166.67% at present.
Looking at the stock’s performance, Prudential Financial opened at $94.44 on Thursday. Its fifty-two week low is recorded as $75.37 while the highest point within that same period stands at $110.96. With a market capitalization of $34.28 billion, the company holds a PE ratio of 31.48 and boasts a price-to-earnings-growth ratio of 0.75, indicating its potential for future growth. The stock also has a beta of 1.40.
In terms of its moving averages, Prudential Financial currently maintains a 50-day simple moving average of $92.58 and a 200-day simple moving average of $88.45. Furthermore, the company exhibits favorable financial metrics with a debt-to-equity ratio of 0.64 and quick and current ratios both standing at 0.06.
Overall, these recent developments in research analysis, dividend announcements, and stock performance provide key insights for investors interested in Prudential Financial’s trajectory moving forward within the market.
Prudential Financial, Inc.
Updated on: 31/08/2023
We did not find social sentiment data for this stock
|Analyst / firm||Rating|
Zacks Research Updates Prudential Financial’s Earnings Estimates and Dividend Payout Ratio Raises Concerns
August 31, 2023 – Equities research analysts at Zacks Research have recently revised their FY2023 earnings estimates for Prudential Financial, Inc. (NYSE:PRU). According to the report issued on Wednesday, August 30th, the financial services provider is projected to post earnings of $11.75 per share for the year. This estimate represents an increase from their previous estimate of $11.68 per share. The consensus estimate for Prudential Financial’s current full-year earnings stands at $11.81 per share.
Zacks Research has also issued various estimates for Prudential Financial’s quarterly earnings in 2023 and 2024. These include $2.89 EPS for Q4 2023, $2.80 EPS for Q1 2024, $3.24 EPS for Q2 2024, $3.20 EPS for Q3 2024, and $3.86 EPS for Q4 2024. Furthermore, they anticipate FY2024 earnings to reach $13.10 EPS, with estimated Q1 2025 earnings at $3.19 EPS and FY2025 earnings at $14.30 EPS.
In addition to these projections, Prudential Financial recently announced its quarterly dividend which is set to be paid on Thursday, September 14th. Investors who were recorded as shareholders on Tuesday, August 22nd will receive a dividend of $1.25 per share.
It is interesting to note that this dividend payout ratio (DPR) currently stands at a perplexing rate of 166%, indicating that the company is paying out more in dividends than it actually earns.
Regarding their most recent quarterly earnings results released on August 1st, Prudential Financial reported an earnings per share figure of $2.94; however this fell slightly short of the consensus estimate of $3.04 by ($0.10). Despite missing the mark, Prudential Financial exhibited a return on equity of 15.73% and a net margin of 1.82%. The firm also recorded revenues of $12.64 billion for the quarter, falling slightly short of analysts’ expectations of $12.68 billion. In comparison, during the same quarter last year, the company reported earnings per share of $1.74.
Recent activity by hedge funds and other institutional investors indicates their interest in trading shares of PRU. Fairfield Bush & CO., for example, recently acquired a stake in Prudential Financial amounting to approximately $36,000 during the first quarter. Blair William & Co. IL also increased their holdings in PRU by 11.3% during the same period, now owning 50,600 shares valued at $5,979,000. Other institutional investors include Sei Investments Co., which increased their holdings by 6.4% owning 90,235 shares valued at $10,698,000; Candriam Luxembourg S.C.A., which saw an incremental increase of 0.7%, holding 47,576 shares worth $5,621,000; and Baird Financial Group Inc., who increased their holdings by 36.4%, now owning 135,716 shares with a value of $16,037,000.
Overall institutional investors currently own approximately 54.92% in shares of Prudential Financial.
In conclusion, Zacks Research has adjusted its estimates for Prudential Financial’s FY2023 earnings to reflect an increase from their previous figures. Additionally,the perplexing dividend payout ratio raises questions as to how sustainable these dividend payments are for the company’s financial health moving forward.