Key Points
- Director Joel Babbit sold 700 Primerica shares on Dec. 3 at an average price of $255 for $178,500 and now owns 8,400 shares, a 7.69% reduction in his position.
- The company’s Board authorized a $475 million stock repurchase program (up to 5.8% of outstanding shares), a sign management may view the stock as undervalued.
- Primerica beat quarterly expectations with $6.33 EPS (vs. $5.52 est.), revenue rose 8.5% to $838.9 million, and the business showed a 22.36% net margin and 31.75% return on equity.
Primerica, Inc. (NYSE:PRI - Get Free Report) Director Joel Babbit sold 700 shares of the company's stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $255.00, for a total transaction of $178,500.00. Following the completion of the sale, the director owned 8,400 shares of the company's stock, valued at approximately $2,142,000. This trade represents a 7.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.
Primerica Stock Performance
Shares of Primerica stock opened at $254.87 on Thursday. The company has a market capitalization of $8.14 billion, a P/E ratio of 11.71 and a beta of 0.90. Primerica, Inc. has a 1 year low of $230.98 and a 1 year high of $299.97. The company's fifty day moving average is $263.28 and its two-hundred day moving average is $266.11.
Primerica (NYSE:PRI - Get Free Report) last announced its earnings results on Wednesday, November 5th. The financial services provider reported $6.33 EPS for the quarter, beating analysts' consensus estimates of $5.52 by $0.81. Primerica had a net margin of 22.36% and a return on equity of 31.75%. The business had revenue of $838.88 million during the quarter, compared to analysts' expectations of $817.81 million. During the same period in the prior year, the company earned $4.83 earnings per share. The business's revenue was up 8.5% compared to the same quarter last year. As a group, equities analysts expect that Primerica, Inc. will post 20.6 earnings per share for the current year.
Primerica declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, November 19th that authorizes the company to repurchase $475.00 million in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its stock is undervalued.
Primerica Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Friday, November 21st will be given a dividend of $1.04 per share. This represents a $4.16 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Friday, November 21st. Primerica's dividend payout ratio (DPR) is presently 19.12%.
Analysts Set New Price Targets
A number of research firms have recently issued reports on PRI. BMO Capital Markets raised Primerica from a "market perform" rating to an "outperform" rating and boosted their target price for the company from $292.00 to $318.00 in a report on Tuesday, September 23rd. Zacks Research upgraded shares of Primerica from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 21st. Morgan Stanley dropped their price objective on shares of Primerica from $306.00 to $301.00 and set an "equal weight" rating on the stock in a research note on Monday, November 17th. Piper Sandler set a $292.00 price objective on shares of Primerica and gave the stock a "neutral" rating in a research report on Tuesday, October 7th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Primerica from $320.00 to $315.00 and set a "market perform" rating for the company in a research note on Tuesday, November 11th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $301.80.
Get Our Latest Report on Primerica
Institutional Investors Weigh In On Primerica
Hedge funds and other institutional investors have recently bought and sold shares of the business. Root Financial Partners LLC purchased a new position in shares of Primerica in the 3rd quarter valued at about $27,000. Smartleaf Asset Management LLC boosted its holdings in Primerica by 186.5% during the third quarter. Smartleaf Asset Management LLC now owns 106 shares of the financial services provider's stock worth $29,000 after buying an additional 69 shares in the last quarter. Hilltop National Bank acquired a new position in Primerica during the second quarter worth about $31,000. Cullen Frost Bankers Inc. purchased a new position in Primerica in the second quarter valued at about $33,000. Finally, Quent Capital LLC purchased a new stake in shares of Primerica during the 3rd quarter worth approximately $33,000. Institutional investors and hedge funds own 90.88% of the company's stock.
Primerica Company Profile
(
Get Free Report)
Primerica, Inc, together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products.
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