Prudential Financial, Inc. (PRU), based in Newark, New Jersey, is a global financial services provider specializing in insurance, investment management, and retirement solutions. With a market capitalization of $37.8 billion, the company operates through key segments, including PGIM (investment management), Retirement Strategies, Group Insurance, Individual Life, and International Businesses.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Prudential fits this bill perfectly. Prudential’s diverse offerings and strong market presence make it a leading player in the financial services industry.
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Prudential recently touched its 52-week high of $130.55 on Nov. 27 and is currently trading 18.7% below that peak. PRU stock has dipped 12% over the past three months, compared to the broader S&P 500 Index ($SPX), which declined 7.5% during the same period.
PRU has declined 8.4% over the past six months and 5.1% over the past 52 weeks. In comparison, PRU has raised marginally over the past six months and 8.2% over the past year.
To confirm the uptrend trend, PRU has traded below its 50-day and 200-day moving average since early February.
On Feb. 4, Prudential Financial reported Q4 earnings with an 11.4% rise in adjusted operating income before income taxes, driven by strong growth in its global investment management unit, PGIM. Total assets under management increased to $1.5 trillion from $1.45 trillion. Despite a 16.5% year-over-year increase, adjusted operating income of $2.96 per share fell short of expectations. Likewise, total revenue of $13 billion missed consensus estimates, which led the stock to crumble 3% after the announcement.
Prudential has also underperformed its peer MetLife, Inc.’s (MET) 4.9% gains over the past six months and 10.5% returns over the past year.
Among the 18 analysts covering the PRU stock, the consensus rating is a “Hold.” The mean price target of $125.88 represents an 18.7% premium to current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
