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 following a weaker than expected 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 traded.

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

Principal Financial Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 28th. Investors of record on Tuesday, March 12th were paid a dividend of $0.69 per share. This is an increase from Principal Financial Group’s previous quarterly dividend of $0.67. The ex-dividend date of this dividend was Monday, March 11th. This represents a $2.76 dividend on an annualized basis and a yield of 3.49%. Principal Financial Group’s dividend payout ratio is presently 112.65%.

Principal Financial Group declared that its Board of Directors has approved a share repurchase program on Monday, February 12th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the company to repurchase up to 7.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on PFG shares. Keefe, Bruyette & Woods increased their price target on shares of Principal Financial Group from $85.00 to $89.00 and gave the company a “market perform” rating in a report on Wednesday, April 10th. Evercore ISI lifted their target price on Principal Financial Group from $84.00 to $86.00 and gave the stock an “in-line” rating in a report on Thursday, April 11th. Morgan Stanley increased their price target on Principal Financial Group from $81.00 to $82.00 and gave the company an “equal weight” rating in a report on Monday, April 15th. Piper Sandler lifted their price objective on shares of Principal Financial Group from $85.00 to $90.00 and gave the stock a “neutral” rating in a research note on Friday, April 5th. Finally, Royal Bank of Canada increased their target price on shares of Principal Financial Group from $75.00 to $83.00 and gave the company a “sector perform” rating in a research note on Wednesday, February 14th. Two equities research analysts have rated the stock with a sell rating and ten have assigned a hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $80.64.

Institutional Trading of Principal Financial Group

A number of large investors have recently made changes to their positions in PFG. GHP Investment Advisors Inc. lifted its holdings in shares of Principal Financial Group by 143.0% in the 3rd quarter. GHP Investment Advisors Inc. now owns 384 shares of the company’s stock worth $27,000 after buying an additional 226 shares during the period. Spire Wealth Management raised its stake in shares of Principal Financial Group by 152.0% during the 4th quarter. Spire Wealth Management now owns 373 shares of the company’s stock worth $29,000 after acquiring an additional 225 shares in the last quarter. EdgeRock Capital LLC purchased a new stake in shares of Principal Financial Group during the 4th quarter valued at $31,000. Fortis Group Advisors LLC purchased a new position in Principal Financial Group during the 3rd quarter worth $33,000. Finally, Newbridge Financial Services Group Inc. acquired a new position in Principal Financial Group during the 4th quarter valued at about $33,000. 75.08% of the stock is owned by hedge funds and other institutional investors.

Principal Financial Group Stock Performance

The firm’s fifty day simple moving average is $81.78 and its 200 day simple moving average is $77.45. The company has a market capitalization 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 debt-to-equity ratio of 0.36, a current ratio of 0.30 and a quick ratio of 0.30.

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.