Prudential Financial (NYSE:PRU) Upgraded by Zacks Investment Research to Hold

Zacks Investment Research upgraded shares of Prudential Financial (NYSE:PRU) from a sell rating to a hold rating in a research report sent to investors on Monday, Zacks.com reports. Zacks Investment Research currently has $90.00 target price on the financial services provider’s stock.

According to Zacks, “Prudential shares have outperformed the industry year to date. It continues to gain from asset-based businesses, improved margins in Group Insurance business and solid international operations. High performing asset management business, deeper reach in the pension risk transfer market, strong balance sheet and an efficient capital management are catalysts. It expects ROE between 12% and 14%, adjusted EPS growth in high single digit, and mid-to- high single digit earnings growth across PGIM, International and U.S. Financial Wellness in the intermediate term. However, exposure to low interest rates as well as to products like annuities and universal life, which yield low returns, remains a concern. Escalating expenses continue to weigh on margin expansion. Prudential’s second-quarter EPS lagged estimates on softness in U.S. Individual Solutions.”

Other equities research analysts have also issued reports about the company. B. Riley lowered Prudential Financial from a buy rating to a neutral rating and dropped their target price for the stock from $122.00 to $100.00 in a research report on Thursday, August 1st. Wells Fargo & Co set a $115.00 target price on Prudential Financial and gave the stock a buy rating in a research report on Wednesday, July 31st. Citigroup lowered Prudential Financial from a buy rating to a neutral rating and dropped their target price for the stock from $112.00 to $94.00 in a research report on Monday, August 5th. UBS Group lowered Prudential Financial from a buy rating to a neutral rating and dropped their target price for the stock from $116.00 to $112.00 in a research report on Monday, May 13th. Finally, Atlantic Securities lowered Prudential Financial from an overweight rating to a neutral rating in a report on Thursday, August 8th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $103.15.

Shares of NYSE PRU opened at $83.66 on Monday. Prudential Financial has a 1-year low of $75.61 and a 1-year high of $106.64. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.11 and a quick ratio of 0.11. The stock has a fifty day moving average of $97.91. The firm has a market capitalization of $32.86 billion, a price-to-earnings ratio of 7.16, a PEG ratio of 0.75 and a beta of 1.49.

Prudential Financial (NYSE:PRU) last issued its earnings results on Wednesday, July 31st. The financial services provider reported $3.14 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $3.22 by ($0.08). Prudential Financial had a return on equity of 9.24% and a net margin of 6.92%. The company had revenue of $14.11 billion during the quarter, compared to analyst estimates of $13.63 billion. During the same period in the prior year, the business earned $3.01 earnings per share. On average, equities research analysts predict that Prudential Financial will post 12.49 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 12th. Stockholders of record on Tuesday, August 20th will be issued a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 4.78%. The ex-dividend date is Monday, August 19th. Prudential Financial’s dividend payout ratio (DPR) is 34.22%.

A number of hedge funds have recently made changes to their positions in the stock. D.A. Davidson & CO. boosted its stake in Prudential Financial by 13.9% during the second quarter. D.A. Davidson & CO. now owns 24,651 shares of the financial services provider’s stock valued at $2,490,000 after buying an additional 3,014 shares in the last quarter. Meadow Creek Investment Management LLC boosted its stake in Prudential Financial by 4.7% during the second quarter. Meadow Creek Investment Management LLC now owns 70,510 shares of the financial services provider’s stock valued at $7,122,000 after buying an additional 3,190 shares in the last quarter. Glen Harbor Capital Management LLC boosted its stake in Prudential Financial by 4.7% during the second quarter. Glen Harbor Capital Management LLC now owns 89,740 shares of the financial services provider’s stock valued at $9,064,000 after buying an additional 4,060 shares in the last quarter. Elkfork Partners LLC boosted its stake in Prudential Financial by 4.7% during the second quarter. Elkfork Partners LLC now owns 108,970 shares of the financial services provider’s stock valued at $11,006,000 after buying an additional 4,930 shares in the last quarter. Finally, Flinton Capital Management LLC boosted its stake in Prudential Financial by 4.7% during the second quarter. Flinton Capital Management LLC now owns 51,280 shares of the financial services provider’s stock valued at $5,179,000 after buying an additional 2,320 shares in the last quarter. 63.65% of the stock is owned by institutional investors and hedge funds.

Prudential Financial Company Profile

Prudential Financial, Inc, through its subsidiaries, provides insurance, investment management, and other financial products and services. It operates through PGIM, U.S. Workplace Solutions, U.S. Individual Solutions, and International Insurance divisions. The PGIM division offers an array of asset management and advisory services related to public and private fixed income, public equity and real estate, commercial mortgage origination and servicing, and mutual funds and other retail services to institutional, private, and sub-advisory clients, as well as to insurance company separate accounts, government sponsored entities, and the general account.

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