Primerica (NYSE:PRI) Trading Up 1.1% – Here’s Why

Shares of Primerica, Inc. (NYSE:PRI) shot up 1.1% during mid-day trading on Friday . The company traded as high as $292.52 and last traded at $292.02. 8,560 shares changed hands during trading, a decline of 94% from the average session volume of 133,551 shares. The stock had previously closed at $288.74.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on PRI. Truist Financial raised their target price on Primerica from $300.00 to $340.00 and gave the stock a “buy” rating in a report on Friday, November 8th. Keefe, Bruyette & Woods lowered their price objective on Primerica from $320.00 to $315.00 and set a “market perform” rating on the stock in a research report on Friday, January 10th. StockNews.com raised shares of Primerica from a “hold” rating to a “buy” rating in a report on Tuesday, January 14th. TD Cowen lifted their price target on shares of Primerica from $314.00 to $345.00 and gave the company a “buy” rating in a report on Tuesday, November 26th. Finally, Piper Sandler reduced their price objective on shares of Primerica from $313.00 to $300.00 and set a “neutral” rating for the company in a research note on Wednesday, December 18th. Five equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $303.00.

Primerica Stock Performance

The firm has a market capitalization of $9.74 billion, a PE ratio of 22.30 and a beta of 1.11. The business’s fifty day simple moving average is $285.92 and its 200-day simple moving average is $269.42.

Primerica (NYSE:PRI) last posted its earnings results on Wednesday, November 6th. The financial services provider reported $5.68 earnings per share for the quarter, beating the consensus estimate of $4.81 by $0.87. Primerica had a net margin of 14.95% and a return on equity of 30.93%. The company had revenue of $774.13 million during the quarter, compared to analysts’ expectations of $745.25 million. During the same period last year, the company posted $4.28 earnings per share. Primerica’s quarterly revenue was up 11.0% on a year-over-year basis. Sell-side analysts expect that Primerica, Inc. will post 19.55 earnings per share for the current fiscal year.

Primerica Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Thursday, November 21st were paid a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date of this dividend was Thursday, November 21st. Primerica’s payout ratio is presently 27.50%.

Primerica announced that its Board of Directors has initiated a stock buyback program on Thursday, November 14th that permits the company to buyback $450.00 million in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 4.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other news, CEO Glenn J. Williams sold 3,000 shares of the company’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $301.27, for a total transaction of $903,810.00. Following the sale, the chief executive officer now directly owns 36,322 shares in the company, valued at approximately $10,942,728.94. This represents a 7.63 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.61% of the company’s stock.

Institutional Investors Weigh In On Primerica

Large investors have recently added to or reduced their stakes in the stock. V Square Quantitative Management LLC purchased a new position in shares of Primerica in the 3rd quarter worth approximately $31,000. Prospera Private Wealth LLC purchased a new position in Primerica during the third quarter worth $31,000. UMB Bank n.a. increased its position in Primerica by 85.9% during the third quarter. UMB Bank n.a. now owns 145 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 67 shares during the last quarter. Larson Financial Group LLC raised its stake in shares of Primerica by 56.8% in the third quarter. Larson Financial Group LLC now owns 149 shares of the financial services provider’s stock valued at $39,000 after acquiring an additional 54 shares during the period. Finally, Quarry LP lifted its holdings in shares of Primerica by 629.2% in the 3rd quarter. Quarry LP now owns 350 shares of the financial services provider’s stock worth $93,000 after acquiring an additional 302 shares during the last quarter. 90.88% of the stock is owned by institutional investors.

Primerica Company Profile

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.