Primerica (NYSE:PRI) Trading Down 0.9% – Should You Sell?

Primerica, Inc. (NYSE:PRI)’s stock price was down 0.9% on Wednesday . The company traded as low as $274.18 and last traded at $275.16. Approximately 17,678 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 141,556 shares. The stock had previously closed at $277.72.

Wall Street Analysts Forecast Growth

PRI has been the subject of several recent research reports. Keefe, Bruyette & Woods increased their target price on shares of Primerica from $315.00 to $320.00 and gave the company a “market perform” rating in a research note on Tuesday, February 18th. Piper Sandler dropped their price target on shares of Primerica from $313.00 to $300.00 and set a “neutral” rating on the stock in a research note on Wednesday, December 18th. Morgan Stanley reduced their price target on shares of Primerica from $313.00 to $304.00 and set an “equal weight” rating for the company in a report on Friday, February 28th. BMO Capital Markets began coverage on shares of Primerica in a report on Thursday, January 23rd. They set a “market perform” rating and a $311.00 price objective for the company. Finally, StockNews.com cut shares of Primerica from a “buy” rating to a “hold” rating in a research report on Friday, February 7th. Six research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $309.86.

Primerica Trading Up 0.2 %

The firm has a market capitalization of $9.25 billion, a price-to-earnings ratio of 20.23 and a beta of 1.12. The firm’s 50-day moving average is $284.19 and its 200 day moving average is $279.40.

Primerica (NYSE:PRI) last posted its earnings results on Tuesday, February 11th. The financial services provider reported $5.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.81 by $0.22. Primerica had a net margin of 15.14% and a return on equity of 31.11%. Analysts predict that Primerica, Inc. will post 20.6 EPS for the current year.

Primerica Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, February 21st will be issued a dividend of $1.04 per share. This represents a $4.16 annualized dividend and a dividend yield of 1.49%. This is a positive change from Primerica’s previous quarterly dividend of $0.90. The ex-dividend date is Friday, February 21st. Primerica’s dividend payout ratio (DPR) is presently 30.25%.

Primerica announced that its board has approved a share repurchase program on Thursday, November 14th that authorizes the company to repurchase $450.00 million in shares. This repurchase authorization authorizes the financial services provider to buy up to 4.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Primerica news, CEO Glenn J. Williams sold 3,000 shares of the company’s stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $281.74, for a total value of $845,220.00. Following the transaction, the chief executive officer now directly owns 33,322 shares in the company, valued at $9,388,140.28. This represents a 8.26 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, President Peter W. Schneider sold 2,000 shares of the stock in a transaction that occurred on Wednesday, March 5th. The shares were sold at an average price of $282.90, for a total transaction of $565,800.00. Following the transaction, the president now owns 13,301 shares in the company, valued at approximately $3,762,852.90. This represents a 13.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 5,234 shares of company stock valued at $1,476,575. Company insiders own 0.85% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Raymond James Financial Inc. acquired a new position in Primerica during the fourth quarter worth $34,191,000. AQR Capital Management LLC raised its position in Primerica by 254.5% during the 4th quarter. AQR Capital Management LLC now owns 116,271 shares of the financial services provider’s stock valued at $31,558,000 after purchasing an additional 83,477 shares during the last quarter. Geode Capital Management LLC raised its position in Primerica by 11.9% during the 4th quarter. Geode Capital Management LLC now owns 779,760 shares of the financial services provider’s stock valued at $211,691,000 after purchasing an additional 82,921 shares during the last quarter. FIL Ltd raised its position in shares of Primerica by 85.5% in the 4th quarter. FIL Ltd now owns 131,365 shares of the financial services provider’s stock worth $35,655,000 after acquiring an additional 60,565 shares in the last quarter. Finally, Cubist Systematic Strategies LLC grew its stake in shares of Primerica by 2,508.8% in the 4th quarter. Cubist Systematic Strategies LLC now owns 57,499 shares of the financial services provider’s stock worth $15,606,000 after buying an additional 55,295 shares during the last quarter. Hedge funds and other institutional investors own 90.88% of the company’s stock.

About Primerica

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.