Prudential Financial (NYSE:PRU) Stock Price Down 5.1% After Earnings Miss

Prudential Financial, Inc. (NYSE:PRU) shares traded down 5.1% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $112.02 and last traded at $111.90. 1,600,346 shares changed hands during trading, a decline of 3% from the average session volume of 1,649,349 shares. The stock had previously closed at $117.95.

The financial services provider reported $2.96 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.36 by ($0.40). Prudential Financial had a return on equity of 15.30% and a net margin of 6.03%.

Prudential Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Tuesday, February 18th will be given a dividend of $1.35 per share. The ex-dividend date is Tuesday, February 18th. This represents a $5.40 annualized dividend and a dividend yield of 4.76%. This is a boost from Prudential Financial’s previous quarterly dividend of $1.30. Prudential Financial’s dividend payout ratio (DPR) is presently 46.22%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on PRU shares. Evercore ISI upgraded shares of Prudential Financial from an “underperform” rating to an “inline” rating and boosted their price target for the stock from $117.00 to $140.00 in a research report on Thursday, November 14th. Bank of America boosted their price objective on shares of Prudential Financial from $109.00 to $118.00 and gave the company a “neutral” rating in a research report on Thursday, October 10th. BMO Capital Markets initiated coverage on shares of Prudential Financial in a research report on Thursday, January 23rd. They set an “underperform” rating and a $101.00 price objective on the stock. Keefe, Bruyette & Woods cut their price objective on shares of Prudential Financial from $135.00 to $129.00 and set a “market perform” rating on the stock in a research report on Thursday, January 16th. Finally, Wells Fargo & Company cut their price objective on shares of Prudential Financial from $117.00 to $115.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 14th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, one has given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $125.77.

Insider Buying and Selling

In other Prudential Financial news, major shareholder Insurance Co Of Ame Prudential acquired 537,249 shares of the stock in a transaction that occurred on Monday, November 25th. The stock was bought at an average cost of $27.92 per share, with a total value of $14,999,992.08. Following the completion of the purchase, the insider now directly owns 4,780,293 shares in the company, valued at $133,465,780.56. The trade was a 12.66 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On Prudential Financial

Large investors have recently added to or reduced their stakes in the company. Grove Bank & Trust raised its holdings in Prudential Financial by 65.9% in the fourth quarter. Grove Bank & Trust now owns 219 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 87 shares in the last quarter. Centricity Wealth Management LLC bought a new position in Prudential Financial in the fourth quarter worth about $29,000. Ashton Thomas Securities LLC bought a new position in Prudential Financial in the third quarter worth about $31,000. CGC Financial Services LLC raised its holdings in Prudential Financial by 82.1% in the fourth quarter. CGC Financial Services LLC now owns 275 shares of the financial services provider’s stock worth $33,000 after purchasing an additional 124 shares in the last quarter. Finally, Wingate Wealth Advisors Inc. bought a new position in Prudential Financial in the fourth quarter worth about $33,000. 56.83% of the stock is currently owned by institutional investors.

Prudential Financial Trading Down 0.6 %

The company has a debt-to-equity ratio of 0.60, a current ratio of 0.14 and a quick ratio of 0.14. The stock has a market cap of $40.36 billion, a price-to-earnings ratio of 10.08, a P/E/G ratio of 1.12 and a beta of 1.31. The company’s fifty day moving average price is $120.07 and its 200-day moving average price is $120.42.

Prudential Financial Company Profile

Prudential Financial, Inc, together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments.