Prudential Financial, Inc. (NYSE: PRU) saw a significant investment from a major shareholder, Insurance Co Of America, which acquired 1,406,739 shares on January 23, 2024. The shares were purchased at an average price of $24.87 each, totaling $34,985,598.93. Following this transaction, the shareholder now holds 7,709,624 shares in Prudential, valued at approximately $191,738,348.88. This purchase represents a 22.32% increase in their ownership stake.
The acquisition was reported through a legal filing with the Securities and Exchange Commission (SEC), a requirement for large shareholders who own more than 10% of a company’s stock. Such disclosures are essential for maintaining transparency in the market.
Market Response and Stock Performance
Following the news of the insider purchase, Prudential Financial’s stock experienced a downturn. During trading on Tuesday, the stock fell by 1.4%, closing at $107.42. The trading volume reached 2,310,870 shares, surpassing the average volume of 1,786,537. Over the past year, Prudential’s stock has fluctuated between a low of $90.38 and a high of $123.88.
Currently, Prudential Financial maintains a market capitalization of $37.60 billion, with a price-to-earnings ratio of 14.76 and a PEG ratio of 0.92. Financial metrics show a quick ratio and current ratio of 0.16 each, alongside a debt-to-equity ratio of 0.58.
The company recently reported its quarterly earnings on October 29, 2023. Prudential posted an earnings per share (EPS) of $4.26, surpassing analysts’ expectations of $3.72 by $0.54. The firm recorded a net margin of 4.65% and a return on equity of 16.60%, with total revenue amounting to $17.89 billion for the quarter, significantly above the anticipated $13.77 billion.
Institutional Investments and Analyst Ratings
Institutional interest in Prudential Financial remains strong, with several hedge funds recently adjusting their positions. Brighton Jones LLC increased its holdings by 3.7% in the fourth quarter, now owning 3,681 shares valued at $436,000. Meanwhile, Empowered Funds LLC raised its position by 30.5%, acquiring 17,690 shares worth approximately $1,976,000.
Wall Street analysts continue to monitor Prudential’s performance closely. UBS Group recently raised its target price from $111.00 to $116.00 while maintaining a “neutral” rating. Conversely, Weiss Ratings upgraded Prudential from a “hold” to a “buy” rating. Barclays reduced its target price to $117.00 but assigned an “equal weight” rating to the stock. Currently, one analyst rates Prudential as a “buy,” while ten others suggest a “hold,” leading to a consensus rating of “hold” with an average target price of $120.78.
Prudential Financial, headquartered in Newark, New Jersey, has a long-standing history dating back to 1875. The firm offers a diverse range of financial services, including insurance, retirement, and investment products, aimed at helping clients manage risk and plan for the future. Its core activities encompass individual life insurance, annuities, retirement solutions, and group insurance products for employers.
