Principal Financial Group Inc. [PFG] fell -13.54% so far this year. What now?

Principal Financial Group Inc. [NASDAQ: PFG] traded at a high on 03/16/23, posting a 4.12 gain after which it closed the day’ session at $72.56. The company report on March 16, 2023 that AM Best Affirms Credit Ratings of Principal Financial Group, Inc. and Its Subsidiaries.

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AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Principal Life Insurance Company and Principal National Life Insurance Company. Both are life insurance operating companies of Principal Financial Group, Inc. (PFG) [NASDAQ: PFG] and collectively are referred to as Principal. Concurrently, AM Best has affirmed the Long-Term ICRs of “a” (Excellent) of Principal Financial Services, Inc. and PFG, as well as the group’s Long-Term Issue Credit Ratings (Long-Term IR). The outlook of these Credit Ratings (ratings) is stable. AM Best also has affirmed the group’s Short-Term Issue Credit Rating (Short-Term IR). (Please see below for a detailed listing of the Long- and Short-Term IRs.) All companies are headquartered in Des Moines, IA.

The ratings reflect Principal’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

The results of the trading session contributed to over 2840436 shares changing hands. Over the past one week, the price volatility of Principal Financial Group Inc. stands at 4.48% while the volatility over the past one month is 3.17%.

The market cap for PFG stock reached $18.07 billion, with 244.50 million shares outstanding and 241.66 million shares in the current float. Compared to the average trading volume of 1.63M shares, PFG reached a trading volume of 2840436 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Principal Financial Group Inc. [PFG]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PFG shares is $83.33 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PFG stock is a recommendation set at 3.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Credit Suisse have made an estimate for Principal Financial Group Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on December 08, 2022. While these analysts kept the previous recommendation, Morgan Stanley raised their target price from $76 to $79. The new note on the price target was released on November 17, 2022, representing the official price target for Principal Financial Group Inc. stock. Previously, the target price had yet another raise from $75 to $81, while Evercore ISI kept a Underperform rating on PFG stock. On November 01, 2022, analysts increased their price target for PFG shares from 81 to 89.

The Average True Range (ATR) for Principal Financial Group Inc. is set at 3.13, with the Price to Sales ratio for PFG stock in the period of the last 12 months amounting to 1.31. The Price to Book ratio for the last quarter was 1.77, with the Price to Cash per share for the same quarter was set at 19.46. Price to Free Cash Flow for PFG in the course of the last twelve months was 7.49.

How has PFG stock performed recently?

Principal Financial Group Inc. [PFG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.05. With this latest performance, PFG shares dropped by -21.11% in over the last four-week period, additionally sinking by -6.47% over the last 6 months – not to mention a rise of 7.53% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PFG stock in for the last two-week period is set at 29.00, with the RSI for the last a single of trading hit 27.82, and the three-weeks RSI is set at 31.46 for Principal Financial Group Inc. [PFG]. The present Moving Average for the last 50 days of trading for this stock 87.54, while it was recorded at 72.95 for the last single week of trading, and 79.78 for the last 200 days.

Principal Financial Group Inc. [PFG]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Principal Financial Group Inc. [PFG] shares currently have an operating margin of +35.03. Principal Financial Group Inc.’s Net Margin is presently recorded at +27.51.

Return on Equity for this stock inclined to 36.91, with Return on Assets sitting at 1.67.

Earnings analysis for Principal Financial Group Inc. [PFG]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PFG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Principal Financial Group Inc. go to 6.77%.

Insider trade positions for Principal Financial Group Inc. [PFG]

There are presently around $13,510 million, or 76.90% of PFG stock, in the hands of institutional investors. The top three institutional holders of PFG stocks are: VANGUARD GROUP INC with ownership of 28,280,358, which is approximately -0.681% of the company’s market cap and around 0.40% of the total institutional ownership; BLACKROCK INC., holding 23,502,767 shares of the stock with an approximate value of $1.71 billion in PFG stocks shares; and NIPPON LIFE INSURANCE CO, currently with $1.32 billion in PFG stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Principal Financial Group Inc. stocks held by institutional investors increased at the end of Monday and at the time of the Monday reporting period, where 403 institutional holders increased their position in Principal Financial Group Inc. [NASDAQ:PFG] by around 13,258,553 shares. Additionally, 290 investors decreased positions by around 13,235,591 shares, while 134 investors held positions by with 159,697,047 shares. The mentioned changes placed institutional holdings at 186,191,191 shares, according to the latest SEC report filing. PFG stock had 135 new institutional investments in for a total of 2,254,205 shares, while 49 institutional investors sold positions of 623,895 shares during the same period.


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