Prudential Financial (NYSE:PRU) Shares Down 10.5% After Earnings Miss

Prudential Financial, Inc. (NYSE:PRU) dropped 10.5% during trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $109.31 and last traded at $109.68. Approximately 1,921,623 shares changed hands during trading, an increase of 32% from the average daily volume of 1,455,462 shares. The stock had previously closed at $122.49.

The financial services provider reported $3.39 earnings per share for the quarter, missing the consensus estimate of $3.43 by ($0.04). Prudential Financial had a return on equity of 15.50% and a net margin of 3.76%. The company had revenue of $13.84 billion for the quarter, compared to analyst estimates of $13.78 billion.

Prudential Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 13th. Investors of record on Tuesday, May 21st were given a dividend of $1.30 per share. The ex-dividend date of this dividend was Monday, May 20th. This represents a $5.20 dividend on an annualized basis and a yield of 4.74%. Prudential Financial’s payout ratio is presently 88.44%.

Wall Street Analysts Forecast Growth

PRU has been the topic of several recent research reports. Citigroup boosted their target price on Prudential Financial from $104.00 to $120.00 and gave the stock a “neutral” rating in a report on Tuesday, July 23rd. Keefe, Bruyette & Woods upped their price objective on shares of Prudential Financial from $118.00 to $121.00 and gave the company a “market perform” rating in a report on Monday, July 8th. JPMorgan Chase & Co. lifted their target price on shares of Prudential Financial from $118.00 to $128.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 2nd. Morgan Stanley raised their price target on shares of Prudential Financial from $120.00 to $123.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 10th. Finally, Wells Fargo & Company raised their target price on Prudential Financial from $100.00 to $106.00 and gave the stock an “underweight” rating in a research note on Thursday, April 11th. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $116.92.

Insider Activity

In other Prudential Financial news, SVP Timothy L. Schmidt sold 5,189 shares of the company’s stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $116.58, for a total transaction of $604,933.62. Following the sale, the senior vice president now owns 12,236 shares in the company, valued at approximately $1,426,472.88. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In other Prudential Financial news, major shareholder Insurance Co Of Ame Prudential purchased 652,884 shares of the firm’s stock in a transaction on Thursday, June 20th. The stock was bought at an average cost of $27.57 per share, with a total value of $18,000,011.88. Following the acquisition, the insider now directly owns 3,883,390 shares of the company’s stock, valued at $107,065,062.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Timothy L. Schmidt sold 5,189 shares of the business’s stock in a transaction that occurred on Wednesday, May 8th. The stock was sold at an average price of $116.58, for a total value of $604,933.62. Following the sale, the senior vice president now owns 12,236 shares of the company’s stock, valued at approximately $1,426,472.88. The disclosure for this sale can be found here. Insiders own 0.31% of the company’s stock.

Institutional Trading of Prudential Financial

Several institutional investors have recently modified their holdings of the stock. Choreo LLC lifted its stake in Prudential Financial by 163.5% in the fourth quarter. Choreo LLC now owns 6,940 shares of the financial services provider’s stock valued at $720,000 after buying an additional 4,306 shares during the last quarter. Cullinan Associates Inc. raised its position in Prudential Financial by 2,355.0% in the 1st quarter. Cullinan Associates Inc. now owns 151,598 shares of the financial services provider’s stock valued at $17,798,000 after purchasing an additional 145,423 shares during the last quarter. National Bank of Canada FI grew its position in Prudential Financial by 44.9% during the 1st quarter. National Bank of Canada FI now owns 230,044 shares of the financial services provider’s stock worth $27,327,000 after purchasing an additional 71,274 shares during the last quarter. Greenwood Capital Associates LLC purchased a new stake in shares of Prudential Financial in the fourth quarter valued at about $1,087,000. Finally, Crestline Management LP boosted its stake in shares of Prudential Financial by 50.0% during the fourth quarter. Crestline Management LP now owns 60,000 shares of the financial services provider’s stock worth $6,223,000 after buying an additional 20,000 shares during the period. Hedge funds and other institutional investors own 56.83% of the company’s stock.

Prudential Financial Stock Performance

The stock has a fifty day moving average of $119.71 and a 200-day moving average of $113.98. The company has a quick ratio of 0.13, a current ratio of 0.13 and a debt-to-equity ratio of 0.67. The stock has a market cap of $39.37 billion, a PE ratio of 19.03, a price-to-earnings-growth ratio of 0.97 and a beta of 1.34.

Prudential Financial Company Profile

Prudential Financial, Inc, together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments.