Primerica (NYSE:PRI) Shares Gap Down on Disappointing Earnings

Primerica, Inc. (NYSE:PRI) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $222.55, but opened at $211.54. Primerica shares last traded at $215.86, with a volume of 16,533 shares trading hands.

The financial services provider reported $3.91 EPS for the quarter, missing the consensus estimate of $4.12 by ($0.21). Primerica had a return on equity of 27.83% and a net margin of 20.37%. The firm had revenue of $742.83 million for the quarter, compared to analysts’ expectations of $740.57 million. During the same quarter in the previous year, the business earned $3.49 earnings per share. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year.

Primerica Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 12th. Shareholders of record on Tuesday, May 21st will be issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 1.37%. The ex-dividend date of this dividend is Monday, May 20th. Primerica’s payout ratio is 18.89%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on PRI shares. StockNews.com downgraded shares of Primerica from a “buy” rating to a “hold” rating in a research note on Tuesday. Raymond James cut Primerica from a “strong-buy” rating to a “market perform” rating in a research note on Monday, February 12th. Morgan Stanley lifted their target price on Primerica from $245.00 to $250.00 and gave the company an “equal weight” rating in a research note on Monday, April 15th. Keefe, Bruyette & Woods increased their price target on shares of Primerica from $255.00 to $260.00 and gave the company a “market perform” rating in a research report on Wednesday, April 10th. Finally, Truist Financial lifted their price objective on shares of Primerica from $260.00 to $275.00 and gave the stock a “buy” rating in a research report on Thursday, February 15th. Five equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $245.50.

Insider Buying and Selling

In other news, President Peter W. Schneider sold 1,500 shares of the company’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $243.41, for a total transaction of $365,115.00. Following the transaction, the president now owns 13,259 shares in the company, valued at $3,227,373.19. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other news, President Peter W. Schneider sold 1,500 shares of Primerica stock in a transaction on Friday, March 15th. The shares were sold at an average price of $243.41, for a total transaction of $365,115.00. Following the completion of the sale, the president now directly owns 13,259 shares in the company, valued at $3,227,373.19. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, COO Gregory C. Pitts sold 3,759 shares of the company’s stock in a transaction on Monday, March 11th. The shares were sold at an average price of $245.43, for a total value of $922,571.37. Following the completion of the transaction, the chief operating officer now directly owns 3,379 shares in the company, valued at $829,307.97. The disclosure for this sale can be found here. Insiders have sold a total of 6,708 shares of company stock worth $1,648,677 in the last ninety days. 0.61% of the stock is owned by insiders.

Institutional Investors Weigh In On Primerica

A number of institutional investors and hedge funds have recently modified their holdings of the company. Trust Point Inc. purchased a new position in Primerica during the 4th quarter worth approximately $339,000. Louisiana State Employees Retirement System purchased a new position in shares of Primerica during the fourth quarter worth $2,016,000. Los Angeles Capital Management LLC lifted its position in Primerica by 44.1% during the third quarter. Los Angeles Capital Management LLC now owns 84,938 shares of the financial services provider’s stock valued at $16,479,000 after purchasing an additional 25,981 shares during the period. James Investment Research Inc. purchased a new stake in Primerica in the third quarter valued at $1,054,000. Finally, Alps Advisors Inc. acquired a new stake in Primerica during the 3rd quarter worth about $6,098,000. Institutional investors and hedge funds own 90.88% of the company’s stock.

Primerica Stock Performance

The firm has a market cap of $7.61 billion, a PE ratio of 13.81 and a beta of 1.10. The stock has a 50 day simple moving average of $236.60 and a two-hundred day simple moving average of $223.48.

Primerica Company Profile

Primerica, Inc, together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products.