Royal Bank of Canada Reaffirms Sector Perform Rating for Principal Financial Group

Analysts at Royal Bank of Canada have reissued a "sector perform" rating for Principal Financial Group (NYSE:PFG) according to a report released on Thursday. This rating comes with a target price set at $91.00 for the stock, indicating a potential upside of 13.64% based on the company’s previous closing price.

In addition to Royal Bank of Canada, a number of other analysts have also reassessed their ratings and price targets for Principal Financial Group. For instance, JPMorgan Chase & Co. recently raised the rating from "neutral" to "overweight" while adjusting their price objective downward from $95.00 to $92.00. Barclays took a different approach, lifting their price target from $75.00 to $77.00 but issued an "underweight" rating. Similarly, Morgan Stanley maintained an "underweight" rating with a new price objective of $80.00, down from $86.00. Furthermore, Bank of America decreased their target price from $94.00 to $91.00, designating a "neutral" rating on the stock.

Piper Sandler also upgraded their rating, moving it from "neutral" to "overweight" and setting a price target of $90.00. Overall, the range of ratings for Principal Financial Group shows some divergence, with recent reports indicating four analysts recommending a sell, five suggesting a hold, two issuing a buy recommendation, and one giving a strong buy rating. MarketBeat data reveals a consensus rating of "Hold" and an average price target of $84.25.

Current Stock Performance

On the trading day that followed the report, PFG stock opened at $80.08. The company holds a market capitalization of $18.32 billion. Key financial ratios include a price-to-earnings ratio of -88.98, a PEG ratio of 0.75, and a beta of 1.22. Over the past twelve months, the stock has seen a low of $72.21 and a high of $91.97, indicating some volatility.

Principal Financial Group also reported its latest quarterly earnings on October 24th, where it posted earnings of $1.76 per share, which fell short of analyst expectations of $2.02. The reported revenue for the quarter was $3.01 billion, significantly below the consensus estimate of $3.92 billion. The company is projected to have an earnings per share of 7.01 for the current year.

Institutional Investments and Changes

Changes in investor stakes have also been notable. Recently, Massachusetts Financial Services Co. acquired a new stake in Principal Financial Group valued at approximately $19.7 million. Meanwhile, Bank of Montreal increased their holdings by 41.0%, now owning 503,735 shares valued at about $43.37 million. Notably, Mizuho Securities USA LLC boosted its stake considerably, owning 152,648 shares after a significant purchase.

The trends show that hedge funds and institutional investors hold 75.08% of the stock, reflecting strong confidence in the company.

About Principal Financial Group

Principal Financial Group, Inc. provides various financial services, including retirement, investment management, and insurance products. It caters to a wide array of clients, including businesses and individuals. The company operates through segments such as Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.

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