Brokerages Set Principal Financial Group, Inc. (NYSE:PFG) Target Price at $76.18

Principal Financial Group, Inc. (NYSE:PFG) has been given a consensus rating of “Reduce” by the ten research firms that are covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation and eight have assigned a hold recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $76.18.

A number of equities research analysts have commented on PFG shares. Evercore ISI upgraded Principal Financial Group from an “underperform” rating to an “inline” rating and upped their price target for the company from $82.00 to $83.00 in a research report on Thursday, January 4th. Keefe, Bruyette & Woods upped their price target on Principal Financial Group from $80.00 to $85.00 and gave the company a “market perform” rating in a research report on Friday, February 16th. Royal Bank of Canada upped their target price on Principal Financial Group from $75.00 to $83.00 and gave the company a “sector perform” rating in a research report on Wednesday, February 14th. Finally, Morgan Stanley upped their target price on Principal Financial Group from $72.00 to $75.00 and gave the company an “equal weight” rating in a research report on Tuesday, February 13th.

Principal Financial Group Price Performance

Shares of PFG opened at $86.31 on Friday. Principal Financial Group has a 12-month low of $65.17 and a 12-month high of $86.77. The business has a 50-day simple moving average of $80.40 and a two-hundred day simple moving average of $76.13. The company has a quick ratio of 0.30, a current ratio of 0.30 and a debt-to-equity ratio of 0.36. The stock has a market cap of $20.36 billion, a PE ratio of 35.23, a PEG ratio of 1.05 and a beta of 1.24.

Principal Financial Group (NYSE:PFG) last released its quarterly earnings results on Monday, February 12th. The company reported $1.83 EPS for the quarter, beating analysts’ consensus estimates of $1.70 by $0.13. Principal Financial Group had a return on equity of 15.14% and a net margin of 4.56%. The firm had revenue of $2.69 billion for the quarter, compared to analyst estimates of $3.53 billion. During the same quarter in the previous year, the company posted $1.70 EPS. Analysts anticipate that Principal Financial Group will post 7.6 earnings per share for the current fiscal year.

Principal Financial Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Tuesday, March 12th were issued a $0.69 dividend. The ex-dividend date of this dividend was Monday, March 11th. This represents a $2.76 annualized dividend and a yield of 3.20%. This is a positive change from Principal Financial Group’s previous quarterly dividend of $0.67. Principal Financial Group’s dividend payout ratio is presently 112.65%.

Principal Financial Group declared that its Board of Directors has initiated a stock repurchase program on Monday, February 12th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the company to buy up to 7.9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Institutional Trading of Principal Financial Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Spire Wealth Management raised its stake in shares of Principal Financial Group by 152.0% in the fourth quarter. Spire Wealth Management now owns 373 shares of the company’s stock worth $29,000 after purchasing an additional 225 shares during the last quarter. GHP Investment Advisors Inc. raised its stake in shares of Principal Financial Group by 143.0% in the third quarter. GHP Investment Advisors Inc. now owns 384 shares of the company’s stock worth $27,000 after purchasing an additional 226 shares during the last quarter. ICA Group Wealth Management LLC raised its stake in shares of Principal Financial Group by 100.0% in the first quarter. ICA Group Wealth Management LLC now owns 400 shares of the company’s stock worth $30,000 after purchasing an additional 200 shares during the last quarter. EdgeRock Capital LLC purchased a new stake in shares of Principal Financial Group in the fourth quarter worth approximately $31,000. Finally, Newbridge Financial Services Group Inc. purchased a new stake in shares of Principal Financial Group in the fourth quarter worth approximately $33,000. 75.08% of the stock is owned by hedge funds and other institutional investors.

About Principal Financial Group

Principal Financial Group, Inc provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services.