Principal Financial Group (NYSE:PFG) Shares Gap Down Following Weak Earnings

Shares of Principal Financial Group, Inc. (NYSE:PFG) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 (EPS) for the quarter, missing analysts’ consensus estimates of $1.74 by ($0.09). The firm had revenue of $4.05 billion for the quarter, compared to analysts’ expectations of $3.68 billion. Principal Financial Group had a return on equity of 15.14% and a net margin of 4.56%. During the same quarter in the prior year, the business earned $1.48 EPS.

Principal Financial Group Increases Dividend

The company 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 represents a $2.76 dividend on an annualized basis and a yield of 3.51%. The ex-dividend date was Monday, March 11th. This is an increase from Principal Financial Group’s previous quarterly dividend of $0.67. Principal Financial Group’s dividend payout ratio (DPR) is currently 112.65%.

Principal Financial Group declared that its Board of Directors has authorized a stock repurchase plan on Monday, February 12th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 7.9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

PFG has been the topic of several analyst reports. Piper Sandler lifted their target price on Principal Financial Group from $85.00 to $90.00 and gave the company a “neutral” rating in a research note on Friday, April 5th. Royal Bank of Canada raised their price target on Principal Financial Group from $75.00 to $83.00 and gave the company a “sector perform” rating in a report on Wednesday, February 14th. Morgan Stanley raised 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. Wells Fargo & Company raised their price target on Principal Financial Group from $86.00 to $91.00 and gave the company an “equal weight” rating in a report on Thursday, April 11th. Finally, Keefe, Bruyette & Woods raised their price target on Principal Financial Group from $85.00 to $89.00 and gave the company a “market perform” rating in a report on Wednesday, April 10th. Two analysts have rated the stock with a sell rating and ten have given a hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $80.64.

Institutional Investors Weigh In On Principal Financial Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP grew its position in shares of Principal Financial Group by 15.0% in the third quarter. Wellington Management Group LLP now owns 4,423,975 shares of the company’s stock valued at $318,836,000 after purchasing an additional 575,646 shares during the period. Northern Trust Corp grew its position in Principal Financial Group by 0.4% during the third quarter. Northern Trust Corp now owns 3,920,915 shares of the company’s stock valued at $282,580,000 after acquiring an additional 16,052 shares during the period. Norges Bank purchased a new stake in Principal Financial Group during the fourth quarter valued at about $253,990,000. First Trust Advisors LP grew its position in Principal Financial Group by 5.5% during the fourth quarter. First Trust Advisors LP now owns 2,783,578 shares of the company’s stock valued at $218,984,000 after acquiring an additional 144,262 shares during the period. Finally, Invesco Ltd. boosted its position in shares of Principal Financial Group by 12.6% in the third quarter. Invesco Ltd. now owns 2,231,757 shares of the company’s stock worth $160,843,000 after buying an additional 249,127 shares during the period. Hedge funds and other institutional investors own 75.08% of the company’s stock.

Principal Financial Group Price Performance

The company has a debt-to-equity ratio of 0.36, a current ratio of 0.30 and a quick ratio of 0.30. The company has a 50-day moving average price of $81.80 and a two-hundred day moving average price of $77.39. The company has a market cap of $18.50 billion, a PE ratio of 32.11, a P/E/G ratio of 0.87 and a beta of 1.25.

Principal Financial Group Company Profile

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.