Primerica (NYSE:PRI) Stock Price Steady - Is It Time to Sell?
Primerica, Inc. (NYSE:PRI) saw its shares remain relatively unchanged during trading on Monday, closing down only 0%. The stock price dipped to a low of $288.93 before settling at $290.20 by mid-day. A total of approximately 13,671 shares changed hands, which is considerably lower than the average daily trading volume of 128,106 shares. The previous close was reported at $290.21.
Wall Street Analysts Forecast Growth
Recently, several analysts have shared their insights on Primerica's stock. StockNews.com adjusted its rating for PRI, downgrading it from "buy" to "hold" as of January 22nd. Keefe, Bruyette & Woods reduced their price target from $320.00 to $315.00, maintaining a "market perform" rating as of January 10th. On the other hand, TD Cowen raised their price estimate for Primerica from $314.00 to $345.00 and assigned a "buy" rating in November. BMO Capital Markets opened coverage on Primerica, giving it a "market perform" rating and a target price of $311.00 this past Thursday. Furthermore, Piper Sandler revised their price target down to $300.00 from $313.00, categorizing the stock as "neutral" in December. Currently, seven investment analysts are holding a "hold" rating for the stock, while two have given it a "buy" rating. MarketBeat data indicates that the average rating stands at "Hold" with a consensus price target of $304.14.
Primerica Stock Overview
The company has a market capitalization of $9.66 billion, a P/E ratio of 22.11, and a beta of 1.11. Its 50-day moving average is $285.15, while the 200-day moving average is recorded at $271.70.
On November 6th, Primerica released its latest earnings results, reporting earnings per share (EPS) of $5.68, surpassing the consensus estimate of $4.81 by $0.87. The firm boasted a net margin of 14.95% and a return on equity of 30.93%. Revenue for this quarter reached $774.13 million, exceeding the expected $745.25 million. In comparison to the same quarter last year, earnings have risen from $4.28 EPS, with revenue growing by 11% year-over-year. Analysts predict that Primerica, Inc. will achieve an EPS of 19.79 for the current fiscal year.
Primerica’s Dividend Policy
The firm recently declared its quarterly dividend, which was disbursed to shareholders on December 12th. Shareholders registered by November 21st received a dividend of $0.90, leading to an annualized dividend of $3.60, reflecting a yield of 1.24%. The ex-dividend date was noted as November 21st. Additionally, Primerica's dividend payout ratio (DPR) is 27.50%.
On November 14th, Primerica's Board of Directors approved a new share repurchase plan, permitting the company to repurchase up to $450 million in outstanding shares. This plan, allowing for the buyback of up to 4.5% of its stock via open market purchases, indicates the company's belief in its shares being undervalued.
Insider Activity
In related news, CEO Glenn J. Williams sold 3,000 shares of Primerica stock on November 11th for an average price of $301.27, resulting in a total transaction value of $903,810. Following this sale, the CEO’s ownership stake in the company decreased by 7.63%, leaving him with 36,322 shares, valued at approximately $10,942,728.94. This insider transaction was disclosed through the SEC.
Institutional Holdings
Various hedge funds have made recent adjustments to their holdings in Primerica. Squarepoint Ops LLC saw a substantial increase of 2,986.9% in shares held during the second quarter, accumulating 32,104 shares valued at $7,595,000 after buying 31,064 additional shares. Geode Capital Management LLC also boosted its stake by 3.9% during the third quarter, now owning 696,839 shares valued at $184,807,000 after acquiring an extra 25,951 shares. International Assets Investment Management LLC made significant purchases, increasing its stakes by 359,742.9% in the same quarter, now holding 25,189 shares worth $6,679,000. Other hedge funds, including Artemis Investment Management LLP and Edgestream Partners L.P., also took new positions, expanding their investments in Primerica. Overall, institutional investors and hedge funds own about 90.88% of Primerica's shares.
About Primerica
Primerica, Inc., along with its subsidiaries, provides a range of financial products and services primarily aimed at middle-income households in the United States and Canada. The company operates through four main segments: Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products.
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