Principal Financial Group (NYSE:PFG) Shares Gap Down Following Weak Earnings

Principal Financial Group, Inc. (NYSE:PFG)’s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $81.06, but opened at $78.93. Principal Financial Group shares last traded at $79.07, with a volume of 145,427 shares trading hands.

The company reported $1.65 earnings per share for the quarter, missing analysts’ consensus estimates of $1.74 by ($0.09). The company had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.68 billion. Principal Financial Group had a net margin of 4.56% and a return on equity of 15.14%. During the same quarter in the prior year, the business earned $1.48 EPS.

Principal Financial Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Tuesday, March 12th were given a $0.69 dividend. The ex-dividend date was Monday, March 11th. This is an increase from Principal Financial Group’s previous quarterly dividend of $0.67. This represents a $2.76 annualized dividend and a yield of 3.49%. Principal Financial Group’s dividend payout ratio (DPR) is currently 112.65%.

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Morgan Stanley boosted their target price on shares of Principal Financial Group from $81.00 to $82.00 and gave the stock an “equal weight” rating in a report on Monday, April 15th. Wells Fargo & Company increased their price objective on Principal Financial Group from $86.00 to $91.00 and gave the company an “equal weight” rating in a report on Thursday, April 11th. Royal Bank of Canada lifted their target price on Principal Financial Group from $75.00 to $83.00 and gave the stock a “sector perform” rating in a report on Wednesday, February 14th. Keefe, Bruyette & Woods increased their price target on Principal Financial Group from $85.00 to $89.00 and gave the company a “market perform” rating in a research note on Wednesday, April 10th. Finally, Evercore ISI lifted their price objective on Principal Financial Group from $84.00 to $86.00 and gave the stock an “in-line” rating in a research note on Thursday, April 11th. Two investment analysts have rated the stock with a sell rating and ten have assigned a hold rating to the company’s stock. Based on data from MarketBeat, Principal Financial Group presently has a consensus rating of “Hold” and an average price target of $80.64.

Institutional Trading of Principal Financial Group

Several hedge funds have recently made changes to their positions in PFG. Global Retirement Partners LLC lifted its stake in shares of Principal Financial Group by 18.8% during the 3rd quarter. Global Retirement Partners LLC now owns 1,205 shares of the company’s stock valued at $82,000 after buying an additional 191 shares in the last quarter. Avior Wealth Management LLC boosted its holdings in shares of Principal Financial Group by 88.7% in the third quarter. Avior Wealth Management LLC now owns 887 shares of the company’s stock worth $64,000 after acquiring an additional 417 shares during the period. GHP Investment Advisors Inc. grew its position 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 valued at $27,000 after purchasing an additional 226 shares in the last quarter. Czech National Bank raised its stake in shares of Principal Financial Group by 45.4% during the 3rd quarter. Czech National Bank now owns 38,868 shares of the company’s stock valued at $2,801,000 after purchasing an additional 12,140 shares during the period. Finally, Asset Management One Co. Ltd. lifted its holdings in Principal Financial Group by 1.3% during the 3rd quarter. Asset Management One Co. Ltd. now owns 100,690 shares of the company’s stock worth $7,257,000 after purchasing an additional 1,339 shares in the last quarter. 75.08% of the stock is currently owned by institutional investors.

Principal Financial Group Stock Down 2.4 %

The stock has a fifty day simple moving average of $81.78 and a two-hundred day simple moving average of $77.45. The firm has a market cap of $18.61 billion, a PE ratio of 32.29, a price-to-earnings-growth ratio of 0.87 and a beta of 1.25. The company has a current ratio of 0.30, a quick ratio of 0.30 and a debt-to-equity ratio of 0.36.

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.