Prudential Financial (NYSE:PRU) Shares Down 5.1% Following Weak Earnings

Prudential Financial, Inc. (NYSE:PRU)’s stock price dropped 5.1% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $112.02 and last traded at $111.90. Approximately 1,600,346 shares changed hands during trading, a decline of 3% from the average daily volume of 1,649,349 shares. The stock had previously closed at $117.95.

The financial services provider reported $2.96 EPS for the quarter, missing the consensus estimate of $3.36 by ($0.40). Prudential Financial had a net margin of 6.03% and a return on equity of 15.30%.

Prudential Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Shareholders of record on Tuesday, February 18th will be issued a $1.35 dividend. This represents a $5.40 annualized dividend and a dividend yield of 4.74%. This is a boost from Prudential Financial’s previous quarterly dividend of $1.30. The ex-dividend date is Tuesday, February 18th. Prudential Financial’s dividend payout ratio (DPR) is presently 46.22%.

Analyst Upgrades and Downgrades

PRU has been the topic of a number of research analyst reports. Evercore ISI upgraded Prudential Financial from an “underperform” rating to an “inline” rating and lifted their price target for the company from $117.00 to $140.00 in a report on Thursday, November 14th. Barclays upped their target price on Prudential Financial from $128.00 to $134.00 and gave the company an “equal weight” rating in a report on Wednesday. Wells Fargo & Company lowered their price objective on shares of Prudential Financial from $117.00 to $115.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 14th. Piper Sandler cut their target price on shares of Prudential Financial from $127.00 to $124.00 and set a “neutral” rating for the company in a research report on Thursday, January 16th. Finally, TD Cowen increased their price objective on Prudential Financial from $130.00 to $133.00 and gave the stock a “hold” rating in a report on Wednesday, November 27th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, one has issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $125.77.

Insider Activity at Prudential Financial

In related news, major shareholder Insurance Co Of Ame Prudential bought 537,249 shares of the company’s stock in a transaction dated Monday, November 25th. The stock was acquired at an average cost of $27.92 per share, with a total value of $14,999,992.08. Following the acquisition, the insider now owns 4,780,293 shares in the company, valued at approximately $133,465,780.56. This represents a 12.66 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.34% of the stock is currently owned by corporate insiders.

Institutional Trading of Prudential Financial

Several large investors have recently added to or reduced their stakes in the company. SRS Capital Advisors Inc. grew its position in Prudential Financial by 29.4% during the 4th quarter. SRS Capital Advisors Inc. now owns 1,117 shares of the financial services provider’s stock worth $132,000 after acquiring an additional 254 shares during the last quarter. Bailard Inc. boosted its stake in Prudential Financial by 2.9% in the fourth quarter. Bailard Inc. now owns 12,401 shares of the financial services provider’s stock worth $1,470,000 after purchasing an additional 355 shares in the last quarter. Kohmann Bosshard Financial Services LLC acquired a new stake in shares of Prudential Financial in the fourth quarter valued at $67,000. Smartleaf Asset Management LLC raised its holdings in shares of Prudential Financial by 22.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 3,239 shares of the financial services provider’s stock valued at $383,000 after buying an additional 599 shares during the last quarter. Finally, BlueStem Wealth Partners LLC bought a new stake in Prudential Financial during the 4th quarter worth about $426,000. 56.83% of the stock is owned by institutional investors.

Prudential Financial Stock Down 3.4 %

The firm’s 50-day simple moving average is $120.38 and its two-hundred day simple moving average is $120.46. The stock has a market cap of $40.55 billion, a price-to-earnings ratio of 10.12, a PEG ratio of 1.12 and a beta of 1.31. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.14 and a current ratio of 0.14.

About Prudential Financial

Prudential Financial, Inc, together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments.