Prudential Financial, Inc. (PRU) Stock: The Numbers Look Good?

Analysts at Goldman upped their rating on shares of Prudential Financial, Inc. (NYSE:PRU) from Neutral to Buy in their opinion released on June 04. Analysts at RBC Capital Mkts issued an upgrade from Sector Perform to Outperform for the stock, in a research note that dated back to February 12.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Prudential Financial, Inc. (NYSE:PRU)’s prospects. The earliest insider trade took place on 02/21/2018. Pelletier Stephen parted with a total of 40.73 thousand shares of company at average share price of $108.75. The total for the sales was set at $4.43 million. After this transaction, the Executive Vice President account balance stood at 9.11 thousand shares. The stock lost -19.69 percent since that insider sale. On 01/02/2018, Koster Barbara, Senior Vice President, sold 16.8 thousand shares at a price per share of $115.17. This removed 1.93 million shares from the insider’s fortune and the stock saw a -24.16 percent retreat in value since the news became public. This transaction left 20.53 thousand shares in the Senior Vice President account. On 11/29/2017, EVP and General Counsel Harris Timothy P performed a sale transaction worth $1.21 million. This sale at $115 each has eliminated 10.53 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -24.05 percent decrease since the transaction was reported. The insider now is left with 21.33 thousand shares remaining in the account. Silitch Nicholas C, who performs the Senior Vice President job, sold 44.86 thousand shares for $5.01 million. The disposal occurred on 11/09/2017 was priced at $111.77 per share. The share price plunged -21.86 percent since the reporting date. Silitch Nicholas C now left with a stake of 11.89 thousand PRU stock worth $1.04 million after the insider selling.

Prudential Financial, Inc. (PRU) is expected to jump by 36.1 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $135-month high price target. This represents a whopping 54.57 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $119, which represents a return potential of 36.25 percent when compared to the closing price of the stock of $87.34 on Thursday, December 06. The lowest price target for the stock is $98 — slightly more than 12.21 percent from PRU’s current share price.

The shares are currently floating around the first support level of $85.06. Below this, the next support is placed in the zone of $82.79. Till the time, the PRU stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 33.82 on daily chart, which may remain a cause for comfort. If the price breaks below $82.79 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $89.06 mark may result into a pull-back move towards $90.79 level.

PRU shares dropped -1.84 points or -2.06 percent on Thursday to $87.34 with a heavy trade volume of 4.801 million shares. After opening the session at $88.41, the shares went as high as $88.51 and as low as $84.51, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $36.4 billion and now has 416.2 million shares outstanding. Prudential Financial, Inc. (PRU) stock has lost -10.71 percent of market value in 21 trading days.

PRU stock has a trailing 3-year beta of 1.4, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $9.12 a share in the trailing twelve months. The stock’s value has fallen -24.04 percent year to date (YTD) against a decline of -24.39 percent in 12 month’s time. The company’s shares still trade -31.3 percent away from its 1-year high of $127.14 and -1.29 percent down from 52-week low of $88.48. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Prudential Financial, Inc. (PRU) are trading at a P/E ratio of 12.31 times earnings reported for the past 12 months. The industry PRU operates in has an average P/E of 14.22. Its P/E ratio went as low as 6.69X and as high as 50.13 over the 5-year span. Further, it is sporting a 0.59 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.36. 0 percent is the gross profit margin for Prudential Financial, Inc. and operating margin sits at 8 percent. Along with this, the net profit margin is 11.3 percent.

PRU will be showing off its Q4 earnings on February 06. Analysts are forecasting revenue to suffer decline of -8.3 percent to $14B in the next fiscal quarter, while earnings are seen soaring by nearly 8.55 percent to $2.92 per share. History has shown that shares in Prudential Financial, Inc. have gone down on 20 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $3.15 per share, worse than the $3.16, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $14.4B, better than the $13.6B analysts expected. Earnings are estimated to increase by 15.9 percent this year, 6.61 percent next year and continue to increase by 9 percent annually for the next 5 years.