Primerica (NYSE:PRI) Cut to “Hold” at Zacks Research

Zacks Research cut shares of Primerica (NYSE:PRI) from a strong-buy rating to a hold rating in a report issued on Tuesday,Zacks.com reports.

A number of other brokerages have also issued reports on PRI. TD Cowen reaffirmed a “buy” rating on shares of Primerica in a research report on Wednesday, January 28th. Weiss Ratings upgraded shares of Primerica from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, February 6th. Keefe, Bruyette & Woods decreased their target price on Primerica from $320.00 to $315.00 and set a “market perform” rating for the company in a research report on Tuesday, November 11th. Finally, Morgan Stanley set a $292.00 price target on Primerica in a research report on Monday, December 15th. Three equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Primerica currently has a consensus rating of “Hold” and a consensus price target of $300.00.

Primerica Stock Up 1.4%

Shares of PRI stock opened at $258.96 on Tuesday. The stock has a 50-day simple moving average of $260.81 and a 200 day simple moving average of $263.23. The stock has a market capitalization of $8.27 billion, a P/E ratio of 11.29 and a beta of 0.91. Primerica has a fifty-two week low of $230.09 and a fifty-two week high of $296.00.

Primerica (NYSE:PRI) last released its earnings results on Wednesday, February 11th. The financial services provider reported $6.13 EPS for the quarter, beating the consensus estimate of $5.69 by $0.44. The business had revenue of $853.51 million during the quarter, compared to analyst estimates of $839.65 million. Primerica had a net margin of 22.82% and a return on equity of 32.30%. The business’s quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the business earned $5.03 earnings per share. On average, sell-side analysts anticipate that Primerica will post 20.6 earnings per share for the current year.

Primerica Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, February 23rd will be issued a $1.20 dividend. This is an increase from Primerica’s previous quarterly dividend of $1.04. The ex-dividend date is Monday, February 23rd. This represents a $4.80 annualized dividend and a yield of 1.9%. Primerica’s dividend payout ratio is presently 20.93%.

Primerica announced that its Board of Directors has initiated a share repurchase program on Wednesday, November 19th that authorizes the company to buyback $475.00 million in shares. This buyback authorization authorizes the financial services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, CEO Glenn J. Williams sold 2,500 shares of the company’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $256.41, for a total transaction of $641,025.00. Following the completion of the sale, the chief executive officer directly owned 27,392 shares of the company’s stock, valued at approximately $7,023,582.72. This represents a 8.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Joel M. Babbit sold 700 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $255.00, for a total transaction of $178,500.00. Following the sale, the director owned 8,400 shares of the company’s stock, valued at $2,142,000. This trade represents a 7.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.61% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Hantz Financial Services Inc. increased its position in Primerica by 18.1% during the fourth quarter. Hantz Financial Services Inc. now owns 255 shares of the financial services provider’s stock worth $66,000 after acquiring an additional 39 shares during the period. Olympiad Research LP grew its holdings in shares of Primerica by 3.9% during the 2nd quarter. Olympiad Research LP now owns 1,061 shares of the financial services provider’s stock worth $290,000 after purchasing an additional 40 shares in the last quarter. Seeds Investor LLC increased its position in shares of Primerica by 3.2% during the fourth quarter. Seeds Investor LLC now owns 1,374 shares of the financial services provider’s stock valued at $355,000 after purchasing an additional 42 shares during the period. Orion Porfolio Solutions LLC raised its stake in shares of Primerica by 1.2% in the second quarter. Orion Porfolio Solutions LLC now owns 3,866 shares of the financial services provider’s stock valued at $1,058,000 after purchasing an additional 45 shares in the last quarter. Finally, SkyView Investment Advisors LLC lifted its position in Primerica by 0.7% in the fourth quarter. SkyView Investment Advisors LLC now owns 6,942 shares of the financial services provider’s stock worth $1,794,000 after purchasing an additional 46 shares during the period. 90.88% of the stock is currently owned by institutional investors and hedge funds.

Primerica Company Profile

Primerica, Inc is a financial services company that focuses on delivering term life insurance and investment products to middle-income households in the United States and Canada. The firm operates a network of independent, licensed representatives who provide personalized guidance on coverage needs, retirement planning, and wealth accumulation. Primerica’s core mission is to help clients obtain affordable life insurance protection while also offering a suite of savings and investment solutions designed for long-term financial security.

In addition to term life insurance, Primerica offers a range of financial products and services that include mutual funds, annuities, auto and home insurance through partner carriers, and personal lending solutions such as secured and unsecured loans.