Primerica (NYSE:PRI) Stock Price Down 1% - What's Next?

Shares of Primerica, Inc. (NYSE:PRI) saw a decline of 1% during mid-day trading on Monday. The company's stock reached a low of $280.30 before last trading at $281.29. A total of 134,291 shares were exchanged during the day, marking an increase of 7% compared to the average daily volume of 125,765 shares. The previous closing price for the stock was $284.14.

Analysts Set New Price Targets

A number of equities research analysts have recently updated their evaluations of Primerica shares. TD Cowen raised its target price for the stock from $314.00 to $345.00, rating it a "buy" in a note dated November 26th. Conversely, StockNews.com downgraded Primerica from a "buy" to a "hold" rating in a report released on February 7th. Additionally, Keefe, Bruyette & Woods reduced their price target from $320.00 to $315.00 while maintaining a "market perform" rating in a report on January 10th. BMO Capital Markets began coverage on Primerica with a "market perform" rating, setting a price target of $311.00 on January 23rd. Lastly, Truist Financial increased their price objective from $300.00 to $340.00, maintaining a "buy" rating as of November 8th. Overall, six analysts hold a "hold" rating, while two rate the stock as a buy. According to MarketBeat.com, Primerica has a consensus rating of "Hold" and an average price target of $310.43.

Primerica Price Performance

Currently, Primerica has a market capitalization of $9.39 billion, a P/E ratio of 21.49, and a beta of 1.11. The stock's 50-day simple moving average stands at $282.17, and the 200-day simple moving average is at $276.08. The company released its latest earnings results on February 11th, reporting earnings per share (EPS) of $5.03 for the quarter, exceeding analysts' expectations of $4.81 by $0.22. Primerica showed a return on equity of 30.93% and a net profit margin of 14.95%. Analysts project that Primerica is set to report an annual EPS of 19.79 for the current year.

Primerica Increases Dividend

Recently, Primerica announced a quarterly dividend of $1.04, payable on March 14th. Shareholders of record on February 21st will receive this dividend, an increase from the previous rate of $0.90. This translates to an annualized dividend yield of 1.48% with a total annual dividend of $4.16. The ex-dividend date is also set for February 21st, and Primerica currently has a payout ratio of 27.50%.

The Board of Directors announced a share repurchase plan on November 14th, allowing the company to buy back $450.00 million worth of its shares. This share buyback initiative generally indicates that the company's management believes the stock is undervalued.

Institutional Investors Weigh In On Primerica

Institutional investors have recently made moves regarding Primerica shares. Colonial Trust Co SC acquired a new stake valued at $25,000 in the fourth quarter. In the third quarter, V Square Quantitative Management LLC invested approximately $31,000 in Primerica. Prospera Private Wealth LLC also bought into the stock for around $31,000 during the same quarter. Other notable investors include Golden State Wealth Management LLC, which made a purchase worth about $33,000 in the fourth quarter, and EverSource Wealth Advisors LLC, which significantly increased its holdings by 129.1%, now owning 126 shares worth $34,000. Institutional ownership of Primerica stands at approximately 90.88%.

About Primerica

Primerica, Inc., through its subsidiaries, provides financial products and services aimed at middle-income households in the United States and Canada. The company operates across four main segments: Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products.

Conclusion

As Primerica faces new evaluations and an evolving market landscape, investors may question whether now is the right time to hold or sell their shares. Keep an eye on future developments, particularly analyst insights and company performance updates.

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