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

Primerica, Inc. (NYSE:PRI) gapped down prior to trading 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 for the quarter, missing analysts’ consensus estimates of $4.12 by ($0.21). The company had revenue of $742.83 million for the quarter, compared to analysts’ expectations of $740.57 million. Primerica had a net margin of 20.37% and a return on equity of 27.83%. The firm’s quarterly revenue was up 7.7% on a year-over-year basis. During the same period in the previous year, the firm earned $3.49 earnings per share.

Primerica Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 12th. Stockholders of record on Tuesday, May 21st will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Monday, May 20th. This represents a $3.00 annualized dividend and a dividend yield of 1.38%. Primerica’s payout ratio is 18.26%.

Analyst Upgrades and Downgrades

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

Insider Transactions at Primerica

In other news, insider Nicholas Adam Jendusa sold 234 shares of the stock in a transaction that occurred on Wednesday, March 13th. The stock was sold at an average price of $249.81, for a total transaction of $58,455.54. Following the completion of the transaction, the insider now directly owns 100 shares in the company, valued at approximately $24,981. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, insider Nicholas Adam Jendusa sold 234 shares of the stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $249.81, for a total value of $58,455.54. Following the completion of the transaction, the insider now owns 100 shares of the company’s stock, valued at approximately $24,981. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Gregory C. Pitts sold 3,759 shares of the business’s stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $245.43, for a total value of $922,571.37. Following the sale, the chief operating officer now directly owns 3,379 shares in the company, valued at $829,307.97. The disclosure for this sale can be found here. Insiders have sold 6,708 shares of company stock valued at $1,648,677 in the last ninety days. Corporate insiders own 0.61% of the company’s stock.

Hedge Funds Weigh In On Primerica

Hedge funds have recently added to or reduced their stakes in the company. ORG Partners LLC bought a new stake in Primerica in the fourth quarter worth about $26,000. LWM Advisory Services LLC purchased a new stake in shares of Primerica in the third quarter worth approximately $26,000. Benjamin F. Edwards & Company Inc. lifted its stake in shares of Primerica by 493.3% during the 1st quarter. Benjamin F. Edwards & Company Inc. now owns 178 shares of the financial services provider’s stock worth $45,000 after acquiring an additional 148 shares during the last quarter. Sound Income Strategies LLC boosted its holdings in Primerica by 121.9% during the 4th quarter. Sound Income Strategies LLC now owns 233 shares of the financial services provider’s stock valued at $48,000 after acquiring an additional 128 shares during the period. Finally, GAMMA Investing LLC purchased a new position in Primerica during the 4th quarter valued at $133,000. 90.88% of the stock is currently owned by institutional investors.

Primerica Trading Down 0.5 %

The company has a market cap of $7.57 billion, a P/E ratio of 13.27 and a beta of 1.10. The company has a 50-day simple moving average of $236.05 and a 200 day simple moving average of $223.44.

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.