Primerica (NYSE:PRI) has been assigned a $102.00 price target by equities research analysts at Wells Fargo & Co in a note issued to investors on Wednesday, February 7th. The firm currently has a “hold” rating on the financial services provider’s stock. Wells Fargo & Co’s price objective suggests a potential upside of 2.98% from the stock’s current price.
The analysts wrote, “We would peg normalized EPS at around $1.49 after backing out $0.05 per share of associated with a benefit from changing the state of domicile for Primerica Life, $0.03 per share from a deferred acquisition cost (DAC) adjustment in Investment and Savings Products (ISP) and $0.03 per share from lower tax rate. We are maintaining our 2018 adjusted EPS estimate at $7.25 to reflect higher asset levels and lower share count offset by a higher guided tax rate than we were modeling. We are raising our 2019E to $8.00 from $7.85 to reflect higher assets levels and a lower share count. Additionally, we are introducing our 2020 EPS estimate of $8.80. FactSet 2018 consensus of $7.03 does not seem to reflect the impact of tax reform in all estimates. We are raising our price target to $102 per share from $100. We expect PRI shares to react favorably to the beat in the quarter. Please see Figure 1 for more detail. What we liked.””
Several other research firms also recently weighed in on PRI. ValuEngine upgraded Primerica from a “hold” rating to a “buy” rating in a research note on Friday, February 2nd. Zacks Investment Research downgraded Primerica from a “buy” rating to a “hold” rating in a research note on Wednesday, January 10th. Keefe, Bruyette & Woods reiterated a “hold” rating and set a $87.00 price target on shares of Primerica in a research note on Monday, October 16th. Finally, SunTrust Banks downgraded Primerica from a “buy” rating to a “hold” rating in a research note on Thursday, October 19th. They noted that the move was a valuation call. Six equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. Primerica has an average rating of “Hold” and a consensus target price of $101.25.
Primerica (NYSE:PRI) last announced its earnings results on Wednesday, February 7th. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.43 by $0.17. Primerica had a return on equity of 19.47% and a net margin of 20.74%. The company had revenue of $442.94 million for the quarter, compared to analyst estimates of $435.87 million. During the same period in the prior year, the company posted $1.19 EPS. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. research analysts expect that Primerica will post 7.24 EPS for the current year.
Primerica announced that its board has authorized a stock buyback plan on Wednesday, February 7th that permits the company to buyback $225.00 million in outstanding shares. This buyback authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.
A number of institutional investors have recently bought and sold shares of the business. MetLife Investment Advisors LLC purchased a new stake in Primerica during the 4th quarter valued at about $4,857,000. Jane Street Group LLC grew its stake in Primerica by 405.7% during the 4th quarter. Jane Street Group LLC now owns 13,336 shares of the financial services provider’s stock valued at $1,354,000 after purchasing an additional 10,699 shares during the last quarter. Zeke Capital Advisors LLC purchased a new stake in Primerica during the 4th quarter valued at about $218,000. Clark Capital Management Group Inc. grew its stake in Primerica by 1.2% during the 4th quarter. Clark Capital Management Group Inc. now owns 177,156 shares of the financial services provider’s stock valued at $17,990,000 after purchasing an additional 2,126 shares during the last quarter. Finally, Millennium Management LLC boosted its stake in shares of Primerica by 137.5% in the fourth quarter. Millennium Management LLC now owns 80,458 shares of the financial services provider’s stock worth $8,171,000 after buying an additional 46,585 shares during the last quarter. Institutional investors and hedge funds own 94.36% of the company’s stock.
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Primerica Inc (Primerica) is a distributor of financial products to middle-income households in the United States and Canada. The Company operates through three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment includes underwriting profits on its in-force book of term life insurance policies, net of reinsurance, which are underwritten by its life insurance company subsidiaries.
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