Primerica (NYSE:PRI) Shares Gap Down on Disappointing Earnings

Primerica, Inc. (NYSE:PRI)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $222.55, but opened at $211.54. Primerica shares last traded at $215.86, with a volume of 16,533 shares.

The financial services provider reported $3.91 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.12 by ($0.21). The firm had revenue of $742.83 million during the quarter, compared to the consensus estimate of $740.57 million. Primerica had a net margin of 20.37% and a return on equity of 27.83%. The company’s revenue was up 7.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.49 earnings per share.

Primerica Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 12th. Investors of record on Tuesday, May 21st will be paid a $0.75 dividend. The ex-dividend date is Monday, May 20th. This represents a $3.00 dividend on an annualized basis and a yield of 1.37%. Primerica’s dividend payout ratio is 18.89%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Morgan Stanley raised their price target on Primerica from $245.00 to $250.00 and gave the stock an “equal weight” rating in a report on Monday, April 15th. Raymond James cut Primerica from a “strong-buy” rating to a “market perform” rating in a research report on Monday, February 12th. StockNews.com lowered shares of Primerica from a “buy” rating to a “hold” rating in a research report on Tuesday. Truist Financial upped their target price on shares of Primerica from $260.00 to $275.00 and gave the stock a “buy” rating in a report on Thursday, February 15th. Finally, Keefe, Bruyette & Woods raised their price target on shares of Primerica from $255.00 to $260.00 and gave the company a “market perform” rating in a report on Wednesday, April 10th. Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $245.50.

Insider Activity at Primerica

In other Primerica news, insider Nicholas Adam Jendusa sold 234 shares of the company’s stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $249.81, for a total transaction of $58,455.54. Following the completion of the sale, the insider now directly owns 100 shares in the company, valued at $24,981. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. In related news, insider Nicholas Adam Jendusa sold 234 shares of Primerica stock in a transaction on Wednesday, March 13th. The shares were sold at an average price of $249.81, for a total value of $58,455.54. Following the transaction, the insider now directly owns 100 shares of the company’s stock, valued at $24,981. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John A. Jr. Addison sold 1,215 shares of the stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $249.00, for a total transaction of $302,535.00. Following the sale, the director now owns 16,467 shares of the company’s stock, valued at $4,100,283. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 6,708 shares of company stock valued at $1,648,677. Insiders own 0.61% of the company’s stock.

Hedge Funds Weigh In On Primerica

Hedge funds have recently made changes to their positions in the business. Lyrical Asset Management LP boosted its holdings in Primerica by 1.5% in the fourth quarter. Lyrical Asset Management LP now owns 663,783 shares of the financial services provider’s stock valued at $136,580,000 after acquiring an additional 9,923 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Primerica by 110.6% during the 3rd quarter. Invesco Ltd. now owns 449,459 shares of the financial services provider’s stock valued at $87,200,000 after purchasing an additional 236,051 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Primerica by 0.9% during the third quarter. Charles Schwab Investment Management Inc. now owns 332,340 shares of the financial services provider’s stock valued at $64,477,000 after buying an additional 3,066 shares during the period. Westfield Capital Management Co. LP raised its stake in Primerica by 4.2% in the fourth quarter. Westfield Capital Management Co. LP now owns 229,084 shares of the financial services provider’s stock worth $47,136,000 after buying an additional 9,198 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in Primerica by 5.0% in the first quarter. Principal Financial Group Inc. now owns 218,324 shares of the financial services provider’s stock worth $55,227,000 after buying an additional 10,354 shares during the period. 90.88% of the stock is owned by hedge funds and other institutional investors.

Primerica Stock Performance

The company has a 50-day simple moving average of $236.60 and a two-hundred day simple moving average of $223.48. The firm has a market capitalization of $7.61 billion, a P/E ratio of 13.81 and a beta of 1.10.

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.