Primerica (NYSE:PRI) Stock Price Down 1.5% - Time to Sell?

On Monday, shares of Primerica, Inc. (NYSE:PRI) experienced a decline of 1.5%, trading at a low of $298.20 before settling at the same price. The mid-day trading volume reached approximately 12,770 shares, which represents a significant drop of 92% from the average daily volume of 152,650 shares. The stock had closed at $302.75 in the previous session.

Wall Street Analysts Forecast Growth

A range of brokerage firms has recently provided their insights on Primerica's stock. Morgan Stanley raised its target price for Primerica shares from $257.00 to $269.00, maintaining an 'equal weight' rating as of August 19th. Meanwhile, Truist Financial increased their price objective from $300.00 to $340.00, classifying the stock as a 'buy' based on their research from November 8th. Also, Piper Sandler initiated coverage on Primerica with a 'neutral' rating and a $283.00 price target as of August 30th. StockNews.com upgraded Primerica from a 'hold' to a 'buy' rating on November 22nd. Lastly, TD Cowen elevated its price target for Primerica from $314.00 to $345.00, giving it a 'buy' rating on November 26th. Currently, five analysts have categorized the stock as a hold while three assigned it a buy rating, resulting in an average rating of 'Hold' with a consensus target price of $293.50 according to MarketBeat.

Primerica Price Performance

Primerica's stock has shown a 50-day simple moving average of $282.86 and a 200-day simple moving average of $257.28. The company's market capitalization stands at $10 billion, with a price-to-earnings (PE) ratio of 22.77 and a beta of 1.08.

On November 6th, Primerica announced its quarterly earnings, reporting earnings per share (EPS) of $5.68. This figure surpassed the consensus estimate of $4.81 by $0.87. The company's return on equity was reported at 30.93%, and the net margin came in at 14.95%. Primerica's revenue for the quarter was $774.13 million, exceeding analyst expectations of $745.25 million, and marking an 11.0% increase compared to the same quarter last year.

Primerica Dividend Announcement

Recently, Primerica disclosed a quarterly dividend that is set to be paid on December 12th. Stockholders recorded as of November 21st will receive a dividend of $0.90 per share, resulting in an annualized dividend of $3.60 and a yield of 1.20%. Primerica's current payout ratio is 27.50%.

Furthermore, Primerica's board of directors authorized a share buyback program on November 14th, allowing the company to repurchase up to $450 million of outstanding shares. This buyback option indicates that the company's management perceives its shares as undervalued.

Insider Buying and Selling at Primerica

In recent insider activity, CEO Glenn J. Williams sold 3,000 shares of Primerica stock on November 11th, at an average price of $301.27. This sale amounted to approximately $903,810, leaving the CEO with 36,322 shares valued at around $10.94 million, representing a 7.63% reduction in their holdings. Additionally, Director John A. Jr. Addison sold 2,000 shares on September 10th, with a total sale price of $507,700, reducing his position by 11.66%. Only 0.85% of Primerica's stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have made recent adjustments to their investments in Primerica. CIBC Asset Management Inc increased its holdings by 3.5% in the third quarter, owning 1,054 shares valued at $279,000 after acquiring an additional 36 shares. Creative Planning increased its shares by 0.7%, now holding 6,083 shares worth $1.61 million. Similarly, Kingsview Wealth Management LLC raised its position by 0.7% to own 5,840 shares worth approximately $1.55 million. Larson Financial Group LLC grew its stake by 56.8%, holding 149 shares valued at $39,000. In addition, Blue Trust Inc added 45.5% to its holdings, now owning 192 shares valued at $49,000. Institutional investors and hedge funds hold 90.88% of Primerica's stock.

Primerica Company Profile

Primerica, Inc., along with its subsidiaries, offers a variety of financial products and services primarily aimed at middle-income households in the U.S. and Canada. Its business operates through four main segments: Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products.

Conclusion

Given the recent performance trends of Primerica's stock, potential investors may wonder whether this is a good time to buy or to hold. While analysts generally suggest a cautious approach, evaluating personal investment strategies and market conditions can provide better insights.

finance, stocks, investment