ValuEngine Downgrades Primerica (NYSE:PRI) to Sell

ValuEngine downgraded shares of Primerica (NYSE:PRI) from a hold rating to a sell rating in a research report sent to investors on Thursday, ValuEngine reports.

A number of other research analysts have also recently issued reports on PRI. William Blair raised Primerica from a market perform rating to an outperform rating in a research note on Thursday. Zacks Investment Research cut Primerica from a buy rating to a hold rating in a research note on Thursday, January 9th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and two have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $128.00.

PRI traded down $0.05 during trading on Thursday, reaching $136.84. The stock had a trading volume of 350,264 shares, compared to its average volume of 177,145. The stock has a market cap of $5.66 billion, a PE ratio of 16.33 and a beta of 1.34. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.54 and a current ratio of 0.54. Primerica has a one year low of $108.75 and a one year high of $138.05. The business has a 50-day moving average of $126.99 and a 200-day moving average of $125.66.

Primerica (NYSE:PRI) last released its earnings results on Tuesday, February 11th. The financial services provider reported $2.22 EPS for the quarter, beating the Zacks’ consensus estimate of $2.11 by $0.11. Primerica had a return on equity of 22.88% and a net margin of 17.90%. The business had revenue of $530.94 million for the quarter, compared to analysts’ expectations of $526.19 million. During the same quarter in the prior year, the firm earned $2.01 earnings per share. Equities research analysts forecast that Primerica will post 8.34 EPS for the current fiscal year.

Primerica declared that its Board of Directors has initiated a share buyback plan on Tuesday, February 11th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 5.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, February 24th will be paid a dividend of $0.40 per share. This is a boost from Primerica’s previous quarterly dividend of $0.34. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.17%. The ex-dividend date of this dividend is Friday, February 21st. Primerica’s dividend payout ratio (DPR) is 18.55%.

In related news, President Peter W. Schneider sold 3,000 shares of the firm’s stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $133.84, for a total value of $401,520.00. Following the sale, the president now directly owns 26,790 shares of the company’s stock, valued at $3,585,573.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Alison S. Rand sold 2,000 shares of the firm’s stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $134.01, for a total value of $268,020.00. Following the completion of the sale, the chief financial officer now directly owns 15,337 shares in the company, valued at $2,055,311.37. The disclosure for this sale can be found here. 0.84% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Municipal Employees Retirement System of Michigan grew its stake in shares of Primerica by 1.2% in the fourth quarter. Municipal Employees Retirement System of Michigan now owns 7,770 shares of the financial services provider’s stock worth $1,014,000 after purchasing an additional 90 shares during the last quarter. Point72 Asset Management L.P. grew its stake in shares of Primerica by 20.0% in the third quarter. Point72 Asset Management L.P. now owns 600 shares of the financial services provider’s stock worth $76,000 after purchasing an additional 100 shares during the last quarter. M&T Bank Corp grew its stake in shares of Primerica by 2.1% in the fourth quarter. M&T Bank Corp now owns 5,369 shares of the financial services provider’s stock worth $700,000 after purchasing an additional 112 shares during the last quarter. ProShare Advisors LLC grew its stake in shares of Primerica by 1.6% in the fourth quarter. ProShare Advisors LLC now owns 8,193 shares of the financial services provider’s stock worth $1,070,000 after purchasing an additional 130 shares during the last quarter. Finally, GWM Advisors LLC grew its stake in shares of Primerica by 1.1% in the fourth quarter. GWM Advisors LLC now owns 16,547 shares of the financial services provider’s stock worth $2,160,000 after purchasing an additional 172 shares during the last quarter. 88.92% of the stock is currently owned by institutional investors.

Primerica Company Profile

Primerica, Inc, together with its subsidiaries, provides financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. It underwrites individual term life insurance products.

Further Reading: Risk Tolerance

To view ValuEngine’s full report, visit ValuEngine’s official website.

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