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

Shares of Primerica, Inc. (NYSE:PRI) fell by 1.5% during mid-day trading on Monday. The stock reached a low of $298.20 and closed at the same price, with around 12,770 shares exchanging hands. This trading volume indicates a significant drop of 92% compared to the average daily volume of 152,650 shares. Just the previous day, the stock closed at $302.75.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on Primerica's stock. Morgan Stanley increased their target price for Primerica shares from $257.00 to $269.00 and maintained an "equal weight" rating in their report dated August 19. Meanwhile, Truist Financial raised their price target from $300.00 to $340.00, providing a "buy" rating in a research note published on November 8. Piper Sandler began coverage on Primerica on August 30, labeling it as "neutral" with a price target of $283.00. StockNews.com upgraded Primerica from a "hold" to a "buy" rating on November 22. Additionally, TD Cowen elevated their price target for Primerica from $314.00 to $345.00, also assigning a "buy" rating in a report from November 26. Currently, five analysts have given the stock a hold rating, while three have assigned a buy rating. According to data from MarketBeat, Primerica holds an average rating of "Hold" and a consensus price target of $293.50.

Primerica Price Performance

Currently, Primerica has a 50-day simple moving average of $282.86 and a 200-day simple moving average of $257.28. The company boasts a market cap of $10.00 billion, a PE ratio of 22.77, and a beta of 1.08. The latest quarterly earnings report, released on November 6, indicated that Primerica reported earnings per share (EPS) of $5.68, surpassing the consensus estimate of $4.81 by $0.87. The company achieved a return on equity of 30.93% and a net margin of 14.95%. Primerica's revenue for the quarter amounted to $774.13 million, beating analyst estimates of $745.25 million. Year-over-year, the business’s revenue grew by 11.0%, with the same quarter last year reflecting EPS of $4.28. Analysts predict that Primerica, Inc. will report an EPS of 19.32 for the current year.

Primerica Dividend Announcement

The company recently announced a quarterly dividend that is set to be paid out on December 12. Shareholders who are on record as of November 21 will receive a dividend of $0.90 per share. The ex-dividend date is also November 21, which translates to an annualized dividend of $3.60 and a yield of 1.20%. Currently, Primerica's payout ratio stands at 27.50%.

Furthermore, on November 14, Primerica's board authorized a share buyback program totaling $450.00 million, which allows the company to repurchase up to 4.5% of its outstanding shares through open market transactions. Such repurchase initiatives typically indicate that a firm's board believes its shares are undervalued.

Insider Buying and Selling at Primerica

In related news, CEO Glenn J. Williams sold 3,000 shares of Primerica on November 11 at an average price of $301.27, totaling $903,810.00. After this transaction, Williams holds 36,322 shares, valued at approximately $10.94 million. This sale also represents a 7.63% decrease in his position. The transaction was filed with the Securities and Exchange Commission (SEC). Additionally, Director John A. Jr. Addison sold 2,000 shares on September 10 for $507,700.00 at an average price of $253.85, leading to an 11.66% decrease in his holdings. Currently, corporate insiders own about 0.85% of Primerica’s stock.

Institutional Inflows and Outflows

Recently, several substantial investors adjusted their positions in Primerica. CIBC Asset Management Inc increased its stake by 3.5% in the third quarter, now holding 1,054 shares valued at $279,000. Creative Planning also lifted its investment by 0.7%, owning 6,083 shares worth $1.61 million. Kingsview Wealth Management LLC has increased its position by 0.7% to 5,840 shares valued at $1.55 million. Larson Financial Group LLC significantly grew its stake by 56.8%, now owning 149 shares valued at $39,000. Finally, Blue Trust Inc. raised its holdings by 45.5% in the second quarter to 192 shares worth $49,000. Approximately 90.88% of Primerica’s stock is owned by institutional investors and hedge funds.

Primerica Company Profile

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

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