Principal Financial Group (NYSE:PFG) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research lowered shares of Principal Financial Group (NYSE:PFG) from a buy rating to a hold rating in a research report sent to investors on Tuesday, Zacks.com reports. The brokerage currently has $46.00 target price on the financial services provider’s stock.

According to Zacks, “Principal Financial’s third-quarter earnings miss estimates. It remains focused on fee-based revenue sources, which help it earn steadily and limit its exposure to interest rate. It continues to benefit from strength and leadership in retirement and long-term savings, group benefits and protection in the United States, retirement and long-term savings in Latin America and Asia, and global asset management. The inorganic growth story is impressive with buyouts fortifying its global footprint and adding fee-based businesses. Shares have underperformed the industry year to date. Nevertheless, it boasts a solid capital position. However, high cost weighs on its margins. Lower return on equity pose financial risk. Also, dilution from acquisition is a potential headwind. Given the low rate environment, it expects lower annuity sales in 2020.”

Several other research analysts have also recently issued reports on the stock. Royal Bank of Canada reissued a hold rating and set a $45.00 price target on shares of Principal Financial Group in a report on Thursday, July 30th. Credit Suisse Group increased their target price on shares of Principal Financial Group from $43.00 to $46.00 and gave the company a neutral rating in a report on Monday, August 24th. Morgan Stanley dropped their price objective on shares of Principal Financial Group from $49.00 to $48.00 and set an equal weight rating for the company in a research note on Tuesday. Piper Sandler raised their price objective on shares of Principal Financial Group from $49.00 to $50.00 and gave the stock an overweight rating in a research note on Thursday, August 13th. Finally, UBS Group raised their price objective on shares of Principal Financial Group from $38.00 to $41.00 and gave the stock a neutral rating in a research note on Friday, October 9th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus price target of $44.86.

NYSE:PFG opened at $39.12 on Tuesday. The business’s fifty day moving average price is $40.97 and its 200 day moving average price is $40.41. Principal Financial Group has a 12 month low of $23.31 and a 12 month high of $57.16.

Principal Financial Group (NYSE:PFG) last released its quarterly earnings data on Saturday, October 31st. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.39 by ($0.54). During the same quarter in the prior year, the business posted $1.23 EPS.

The company also recently announced a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Wednesday, December 2nd will be given a dividend of $0.56 per share. The ex-dividend date is Tuesday, December 1st. This represents a $2.24 dividend on an annualized basis and a yield of 5.73%.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Holderness Investments Co. boosted its position in Principal Financial Group by 2.9% during the second quarter. Holderness Investments Co. now owns 8,489 shares of the financial services provider’s stock worth $353,000 after acquiring an additional 240 shares during the last quarter. Resources Investment Advisors LLC. boosted its holdings in shares of Principal Financial Group by 3.6% in the 2nd quarter. Resources Investment Advisors LLC. now owns 7,392 shares of the financial services provider’s stock valued at $307,000 after purchasing an additional 254 shares during the last quarter. CWM LLC boosted its holdings in shares of Principal Financial Group by 4.7% in the 3rd quarter. CWM LLC now owns 5,715 shares of the financial services provider’s stock valued at $230,000 after purchasing an additional 256 shares during the last quarter. First Command Bank boosted its holdings in shares of Principal Financial Group by 72.1% in the 3rd quarter. First Command Bank now owns 628 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 263 shares during the last quarter. Finally, CIBC Asset Management Inc boosted its holdings in shares of Principal Financial Group by 1.4% in the 2nd quarter. CIBC Asset Management Inc now owns 23,077 shares of the financial services provider’s stock valued at $959,000 after purchasing an additional 323 shares during the last quarter. Hedge funds and other institutional investors own 68.64% of the company’s stock.

Principal Financial Group Company Profile

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 Global Investors, Principal International, and U.S. Insurance Solutions segments.

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