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

Principal Financial Group, Inc. (NYSE:PFG)’s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 changing hands.

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

Principal Financial Group Increases Dividend

The business 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 represents a $2.76 dividend on an annualized basis and a yield of 3.51%. This is a positive change from Principal Financial Group’s previous quarterly dividend of $0.67. Principal Financial Group’s dividend payout ratio (DPR) is currently 112.65%.

Principal Financial Group announced that its Board of Directors has authorized a share repurchase plan on Monday, February 12th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 7.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

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

Principal Financial Group Trading Down 2.9 %

The company has a debt-to-equity ratio of 0.36, a current ratio of 0.30 and a quick ratio of 0.30. The stock has a market capitalization of $18.50 billion, a PE ratio of 32.11, a PEG ratio of 0.87 and a beta of 1.25. The stock’s 50 day simple moving average is $81.80 and its two-hundred day simple moving average is $77.39.

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 Asset Management, and Benefits and Protection segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services.