Principal Financial Group Inc. (PFG) Volatility Spurs A Quest For Clarity


Nissay Asset Management Corp. recently announced the acquisition of new stake in Principal Financial Group Inc. (NASDAQ:PFG). The institutional investor has increased its shareholding in the Financial company by 0.00% to 18.16 million shares with purchase of 791.0 shares. This fresh investment now brings its stake to 6.63% valued currently at $754.4 million. In addition, BlackRock Fund Advisors raised its holdings by 25885.0 to 17.41 million shares. And Capital Research & Management Co. has lifted its position by 2.02% or 0.29 million shares – to 14.56 million shares.

With over 1.3 million Principal Financial Group Inc. (PFG) shares trading Wednesday and a closing price of $43.89 on the day, the dollar volume was approximately $57.02 million. The shares have shown a negative weekly performance of -3.06% and its price on 07/28/20 gained nearly 1.06%. Currently, there are 275.00M common shares owned by the public and among those 273.08M shares have been available to trade.

The analysts have set the share’s price value over the next 12 months at a high of $57.00 and a low of $37.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Principal Financial Group Inc. stock is 2.70 for the next 12 months. The average price target is 2.03% above its last price level and an upside to the estimated low will see the stock lose -18.62% over that period. But an upside of 23.0% will see the stock hit the forecast high price target while mean target price for the stock is $45.50.

Insiders at the company have transacted a total of 118 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 98 of these insider trades were purchases, accounting for 225,335 shares. Insider sales of the common stock occurred on 20 occasions, with total insider shares sold totaling 72,792 shares.

The top 3 mutual fund holders in Principal Financial Group Inc. are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Capital Income Builder. Vanguard Total Stock Market Index owns 7.81 million shares of the company’s stock, all valued at over $324.43 million. The company sold -0.21 million shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.48 million shares to see its total holdings shrink to 6.77 million shares valued at over $281.15 million and representing 2.47% of the shares outstanding. Capital Income Builder sold -1.43 million shares to bring its total holdings to over 6.27 million shares at a value of $260.26 million. Capital Income Builder now owns shares totaling to 2.29% of the shares outstanding.

Shares of Principal Financial Group Inc. (NASDAQ: PFG) opened at $46.99, up $3.56 from a prior closing price of $43.43. However, the script later closed the day at $43.82, up 0.90%. The company’s stock has a 5-day price change of -3.06% and 29.22% over the past three months. PFG shares are trading -21.04% year to date (YTD), with the 12-month market performance down to -27.02% lower. It has a 12-month low price of $23.31 and touched a high of $60.58 over the same period. Currently, 1.35 million shares have been traded, compared to an average intraday trading volume of 1.76 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.01%, 4.65%, and -3.92% respectively.

Institutional ownership of Principal Financial Group Inc. (NASDAQ: PFG) shares accounts for 72.30% of the company’s 275.00M shares outstanding. Mutual fund holders own 30.69%, while other institutional holders and individual stakeholders account for 40.93% and 0.95% respectively.

It has a market capitalization of $11.96B and a beta (3y monthly) value of 1.64. The stock’s trailing 12-month PE ratio is 9.71, while the earnings-per-share (ttm) stands at $4.48. The company has a PEG of 1.76 and the debt-to-equity ratio at 0.29. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.41% over the week and 3.50% over the month.

Analysts forecast that Principal Financial Group Inc. (PFG) will achieve an EPS of $1.36 for the current quarter, $1.35 for the next quarter and $5.95 for 2021. The lowest estimate earnings-per-share for the quarter is $1.19 while analysts give the company a high EPS estimate of $1.59. Comparatively, EPS for the current quarter was $1.23 a year ago. Earnings per share for the fiscal year are expected to decrease by -7.30%, and 14.74% over the next financial year. EPS should shrink at an annualized rate of 5.50% over the next five years, compared to 5.90% over the past 5-year period.

Looking at the support for the PFG, a number of firms have released research notes about the stock. Goldman stated their Sell rating for the stock in a research note on June 18, 2020, with the firm’s price target at $38. BofA/Merrill coverage for the Principal Financial Group Inc. (PFG) stock in a research note released on June 01, 2020 offered a Buy rating with a price target of. UBS was of a view on April 14, 2020 that the stock is Neutral, while UBS gave the stock Sell rating on February 05, 2019, issuing a price target of $45. Evercore ISI on their part issued In-line rating on January 09, 2019.


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