Primerica (NYSE:PRI) Stock Price Down 0.8% - Here's Why

Primerica, Inc. (NYSE:PRI) saw its shares decrease by 0.8% on Monday, closing at $294.05. During the day, the stock traded as low as $293.46, and a total of 16,697 shares changed hands, significantly lower than the average session volume of 132,542 shares. Previously, the stock had closed at $296.43.

Wall Street Analyst Perspectives

Recent assessments from several equities analysts provide insight into the situation. BMO Capital Markets initiated coverage with a "market perform" rating and set a price objective of $311.00 for Primerica. On January 10th, Keefe, Bruyette & Woods adjusted their price target from $320.00 down to $315.00, maintaining a "market perform" rating. Furthermore, Piper Sandler decreased their price objective from $313.00 to $300.00, while also issuing a "neutral" rating on the stock as of December 18th. Conversely, Truist Financial raised their target price from $300.00 to $340.00, giving Primerica a "buy" rating on November 8th. TD Cowen also increased their price target from $314.00 to $345.00, maintaining a "buy" rating on November 26th. Overall, seven analysts have given the stock a hold rating, while two rated it as a buy. The current consensus rating remains at "Hold" with an average price target of $304.14 according to MarketBeat.

Performance Overview

Primerica boasts a market capitalization of $9.79 billion, with a price-to-earnings ratio of 22.42 and a beta of 1.11. Its 50-day and 200-day moving averages stand at $283.37 and $274.84, respectively. Notably, the company’s Board of Directors approved a share repurchase program on November 14th, permitting the buyback of $450 million in shares, equating to about 4.5% of the company's outstanding shares. Such buyback programs often signal the leadership’s belief that the stock is undervalued.

Institutional Investment Insights

In recent months, several institutional investors have modified their stakes in Primerica. V Square Quantitative Management LLC made a new investment worth approximately $31,000 in the third quarter. Similarly, Prospera Private Wealth LLC also purchased a new position in Primerica, amounting to about $31,000. Golden State Wealth Management LLC acquired additional shares during the fourth quarter, bringing their stake to roughly $33,000. EverSource Wealth Advisors LLC increased its holdings in Primerica by 129.1% in the fourth quarter, owning 126 shares valued at $34,000 after acquiring 71 additional shares. UMB Bank n.a. also expanded their stake by 85.9% in the third quarter, totaling 145 shares worth $38,000. Presently, around 90.88% of Primerica's shares are held by institutional investors and hedge funds.

Company Overview

Primerica, Inc. provides a variety of financial products and services aimed primarily at middle-income households in the United States and Canada. The company operates across four segments: Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products.

Conclusion

The recent dip in Primerica’s stock price reflects a broader market trend and investor sentiment. With a mix of analyst ratings and institutional involvement, observers will be watching closely to see how share value stabilizes in the coming periods.

Primerica, Stocks, Investment