Investors Buy Prudential Financial (PRU) on Weakness Following Weak Earnings

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Investors bought shares of Prudential Financial Inc (NYSE:PRU) on weakness during trading on Thursday following a weaker than expected earnings announcement. $125.34 million flowed into the stock on the tick-up and $74.28 million flowed out of the stock on the tick-down, for a money net flow of $51.06 million into the stock. Of all companies tracked, Prudential Financial had the 18th highest net in-flow for the day. Prudential Financial traded down ($3.72) for the day and closed at $96.97The financial services provider reported $3.15 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $3.16 by ($0.01). The firm had revenue of $14.43 billion for the quarter, compared to analyst estimates of $13.51 billion. Prudential Financial had a return on equity of 9.98% and a net margin of 13.16%. During the same quarter in the prior year, the company earned $3.01 earnings per share.

A number of equities research analysts have recently issued reports on PRU shares. Zacks Investment Research lowered Prudential Financial from a “buy” rating to a “hold” rating in a research note on Monday, July 16th. Credit Suisse Group lowered their target price on Prudential Financial from $102.00 to $98.00 and set a “neutral” rating for the company in a research note on Friday, August 17th. Morgan Stanley lowered their target price on Prudential Financial from $122.00 to $120.00 and set an “equal weight” rating for the company in a research note on Thursday. Goldman Sachs Group upgraded Prudential Financial from a “buy” rating to a “conviction-buy” rating in a research note on Monday, September 10th. Finally, Royal Bank of Canada reiterated a “buy” rating and issued a $122.00 target price on shares of Prudential Financial in a research note on Friday, August 3rd. One analyst has rated the stock with a sell rating, four have assigned a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. Prudential Financial currently has an average rating of “Buy” and an average price target of $119.31.

In other Prudential Financial news, major shareholder Prudential Financial Inc purchased 880,000 shares of Prudential Financial stock in a transaction that occurred on Tuesday, October 16th. The stock was purchased at an average price of $25.00 per share, with a total value of $22,000,000.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Scott Sleyster sold 23,300 shares of the stock in a transaction dated Friday, September 28th. The shares were sold at an average price of $99.74, for a total value of $2,323,942.00. Following the completion of the transaction, the insider now directly owns 57,758 shares of the company’s stock, valued at approximately $5,760,782.92. The disclosure for this sale can be found here. 0.66% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. LSV Asset Management boosted its holdings in Prudential Financial by 0.8% in the third quarter. LSV Asset Management now owns 3,541,374 shares of the financial services provider’s stock valued at $358,812,000 after purchasing an additional 27,870 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its holdings in Prudential Financial by 2.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 2,814,489 shares of the financial services provider’s stock valued at $263,183,000 after purchasing an additional 61,889 shares during the last quarter. Swiss National Bank boosted its holdings in Prudential Financial by 2.6% in the second quarter. Swiss National Bank now owns 1,395,287 shares of the financial services provider’s stock valued at $130,473,000 after purchasing an additional 35,000 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its holdings in Prudential Financial by 2.1% in the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,345,888 shares of the financial services provider’s stock valued at $136,365,000 after purchasing an additional 27,463 shares during the last quarter. Finally, CIBC Private Wealth Group LLC boosted its holdings in Prudential Financial by 1.1% in the second quarter. CIBC Private Wealth Group LLC now owns 1,240,670 shares of the financial services provider’s stock valued at $116,015,000 after purchasing an additional 12,967 shares during the last quarter. 63.15% of the stock is owned by hedge funds and other institutional investors.

The firm has a market cap of $41.02 billion, a P/E ratio of 9.17, a PEG ratio of 0.90 and a beta of 1.44. The company has a quick ratio of 0.12, a current ratio of 0.12 and a debt-to-equity ratio of 0.34.

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About Prudential Financial (NYSE:PRU)

Prudential Financial, Inc, through its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through U.S. Individual Solutions, U.S. Workplace Solutions, Investment Management, and International Insurance divisions.

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