Prudential Financial (NYSE:PRU) Releases Quarterly Earnings Results, Beats Estimates By $0.44 EPS

Prudential Financial (NYSE:PRU) released its quarterly earnings results on Tuesday. The financial services provider reported $3.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.33 by $0.44, FiscalAI reports. Prudential Financial had a return on equity of 16.08% and a net margin of 6.75%. The firm had revenue of $14.45 billion for the quarter, compared to the consensus estimate of $14.66 billion. During the same period last year, the business posted $4.26 EPS.

Prudential Financial Stock Performance

PRU traded down $3.82 during midday trading on Thursday, reaching $122.81. The company had a trading volume of 1,481,968 shares, compared to its average volume of 2,015,852. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.62. The business has a 50-day moving average of $116.96 and a two-hundred day moving average of $108.86. The company has a market cap of $42.37 billion, a P/E ratio of 11.15, a P/E/G ratio of 1.99 and a beta of 0.85. Prudential Financial has a 1 year low of $91.89 and a 1 year high of $128.78.

Prudential Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th were given a $1.40 dividend. The ex-dividend date was Tuesday, August 25th. This represents a $5.60 dividend on an annualized basis and a yield of 4.6%. Prudential Financial’s dividend payout ratio is presently 50.72%.

Insider Buying and Selling at Prudential Financial

In other news, EVP Ann Kappler sold 7,652 shares of Prudential Financial stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $125.01, for a total transaction of $956,576.52. Following the transaction, the executive vice president directly owned 14,407 shares of the company’s stock, valued at $1,801,019.07. The trade was a 34.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.05% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft lowered their target price on Prudential Financial from $105.00 to $102.00 and set a “hold” rating on the stock in a report on Friday, October 23rd. Zacks Research downgraded Prudential Financial from a “hold” rating to a “strong sell” rating in a research note on Friday, October 23rd. Barclays increased their price objective on shares of Prudential Financial from $94.00 to $98.00 and gave the stock an “underweight” rating in a research note on Wednesday. Bank of America reissued a “neutral” rating on shares of Prudential Financial in a report on Wednesday. Finally, Jefferies Financial Group cut their target price on shares of Prudential Financial from $116.00 to $109.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and six have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus target price of $112.40.

Key Stories Impacting Prudential Financial

Here are the key news stories impacting Prudential Financial this week:

• Positive Sentiment: Third-quarter adjusted earnings of $3.77 per share beat analyst expectations, with strength in PGIM and U.S. protection. Annuity sales also reached a 13-year high. Zacks earnings report
• Positive Sentiment: Prudential expects its Japan units to resume business on February 1 and is targeting about $3.1 billion in net proceeds from the $4.025 billion sale of its Brazil and Mexico businesses. The return and proceeds may help support the company’s reshaping plans. Japan and divestiture update
• Neutral Sentiment: Piper Sandler raised its price target from $120 to $133 but kept a neutral rating, indicating a more favorable valuation view without a bullish recommendation. Piper Sandler recommendations
• Negative Sentiment: Revenue of $14.45 billion fell short of the $14.66 billion consensus, and earnings were below the $4.26 per share reported a year earlier. The Japan suspension has also reduced income and brought substantial restructuring costs. Japan suspension and annuity sales
• Negative Sentiment: Barclays maintained an underweight rating despite raising its target from $94 to $98, signaling continued concern about the shares’ valuation or outlook. Barclays recommendations

Prudential Financial Company Profile

Prudential Financial, Inc (NYSE: PRU) is a global financial services company that provides insurance, retirement, investment management and related financial products. Founded in Newark, New Jersey, in 1875, the company serves individuals, businesses and institutional investors through a range of businesses and distribution channels.

In the United States, Prudential offers life insurance, annuities, retirement plans and employee benefits, including group life, disability and dental insurance.