Principal Finl Gr (NASDAQ:PFG) Stock, Quote.Headers.trade-ideas

Principal Finl Gr

Principal Financial Group

Principal Financial

Principal Financial Group Inc

NYSE

Principal Financial Group Inc is a leader in Global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through diverse family of financial services companies. It operates in four business segments that are Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions. The company receives maximum revenue in the form of premiums.

Principal Financial Gr

Earnings

Large Cap

Mid Cap

News

Dividends

Buybacks

Markets

Analyst Ratings

Trading Ideas

Shares of Principal Financial Group, Inc. (NASDAQ: PFG) have gained 0.8% in the past year, underperforming the industry&#39;s growth of 11% and the Zacks S&amp;P 500 composite&#39;s rise of 14.4%.

Principal Financial Stock Lags Industry: Should You Hold or Fold?

Wall Street, US stocks

Price Target

AMKR

FFIV

HOLX

VRNS

GE Aerospace To Rally Around 18%? Here Are 10 Top Analyst Forecasts For Tuesday

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor&#39;s dream. But when you&#39;re an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Principal Financial Could Be a Great Choice

Principal Financial Group Inc - Common Stock

Performance Food Group Company Common Stock

Performance Food Group Co

PACIFIC EDGE LTD ORD by Pacific Edge Limited

Pacific Edge Ltd

Shares of Principal Financial Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pfg#NASDAQ">PFG</a>) have gained 0.8% in the past year, underperforming the industry&#39;s growth of 11% and the Zacks S&amp;P 500 composite&#39;s rise of 14.4%.
<h2>PFG Lags Industry and S&amp;P</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/80/77282.jpg?v=1534126285" />
Image Source: Zacks Investment Research
Earnings per share missed the consensus estimate in the last two reported quarters of 2024.
Closing at $79.30 on Tuesday, the stock stands almost 10.1% below its 52-week high of $88.26.
The Zacks Consensus Estimate for PFG&#39;s 2024 and 2025 earnings has moved 0.2% and 0.3% south, respectively, in the past 30 days.
Principal Financial&#39;s expenses have been increasing since 2013 due to a rise in benefits, claims and settlement expenses, as well as operating expenses. An increase in expenses weighs on its margins. Net margin contracted 280 basis points to 8.1% in the second quarter of 2024.
<h2>Factors Benefiting PFG Stock</h2>
Principal Financial&#39;s revenue growth is expected to improve in the long run, riding on higher premiums and other considerations, fees and other revenues, and improved net investment income across its segments.
The Principal International segment is likely to benefit from higher single-premium annuity sales in Chile. The segment&#39;s operating earnings should gain from foreign currency tailwinds.
The Specialty Benefits Insurance business should continue to gain from record sales, strong retention and employment growth. Growth in the business, favorable claims and disciplined expense management should benefit its pre-tax operating earnings.
Strong institutional flows across equities, real estate and specialty fixed income, highlighting the value of diversified distribution through its institutional, retail and retirement channels, are likely to drive positive net cash flow. Principal Financial&#39;s extensive distribution footprint, strategic buyouts and operational discipline should enhance the assets under management growth.
Principal Financial boasts a strong capital position, with sufficient cash generation capabilities and liquidity. To reflect the business mix and risk profile, PFG lowered the target RBC level from the previous 400% to a range of 375-400%. For 2024, PFG remains well-positioned to deliver on enterprise long-term financial targets, with 9% to 12% growth in earnings per share and 75% to 85% free capital flow conversion.
<h2>PFG&#39;s Distribution of Wealth</h2>
Principal Financial&#39;s wealth distribution through share buybacks and dividend payment looks impressive. In the third quarter of 2023, PFG raised the dividend by 11% for the fifth consecutive quarter, aligned with the targeted 40% dividend payout ratio, demonstrating confidence in continued growth and overall performance. It also boasts a solid dividend yield of 3.6%, higher than the industry average of 2.4%. The company continues to expect to deliver on the targeted 75-85% free capital flow for 2024.
PFG returned more than $415 million of capital to shareholders in the second quarter of 2024, including $250 million of share repurchases. It remains committed to returning excess capital to shareholders and continues to expect $1.5-$1.8 billion of capital deployment for 2024, including $800 million to $1.1 billion of share repurchases. Based on net income, excluding exited business, the company targets 35-45% share repurchases in 2024.
<h2>Estimates for Principal Financial</h2>
The Zacks Consensus Estimate for Principal Financial&#39;s 2024 earnings per share indicates a year-over-year increase of 11.6%. The consensus estimate for revenues is pegged at $15.81 billion, implying a year-over-year improvement of 7.8%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 15.4% and 4.6%, respectively, from the corresponding 2024 estimates.
<h2>PFG&#39;s Favorable Return on Equity</h2>
PFG&#39;s return on equity in the trailing 12 months was 14.9%, better than the industry average of 9.7%, reflecting efficiency in utilizing shareholders&#39; funds.
<h2>PFG Shares Are Affordable</h2>
Principal Financial is trading at a discount compared with the industry average. It presents a compelling investment opportunity with its attractive forward 12-month price-to-earnings ratio of 9.8X, lower than the industry average of 14.82X. Also, it has a Value Score of A.
Shares of other accident and health insurers like Affiliated Managers Group, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amg#NYSE">AMG</a>), Ameriprise Financial, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amp#NYSE">AMP</a>)&nbsp;and Apollo Global Management Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/apo#NYSE">APO</a>) are also trading at a discount to the industry average.
<h2>Wrapping Up: Keep On Holding</h2>
Principal Financial&#39;s financial stability, favorable growth estimates and affordability of shares make it an attractive stock to retain for current investors.&nbsp; 
PFG should benefit from strategic buyouts, strong retention, higher single premium annuity sales, effective capital deployment, positive net cash flow and favorable return on capital. It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock.
<a href="https://www.zacks.com/stock/news/2334685/principal-financial-stock-lags-industry-should-you-hold-or-fold?cid=CS-BENZ-FT-analyst_blog|rank_focused-2334685">To read this article on Zacks.com click here.</a>

Barclays analyst Alex Scott initiates coverage on Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Underweight rating and announces Price Target of $74.

Initiation

Barclays Initiates Coverage On Principal Finl Gr with Underweight Rating, Announces Price Target of $74

Management

Principal Financial Group Appoints Deanna Strable As President And COO

In the latest quarter, 10 analysts provided ratings for Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>), showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">8</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $85.4, with a high estimate of $99.00 and a low estimate of $70.00. Surpassing the previous average price target of $81.44, the current average has increased by 4.86%.
<img src="https://www.benzinga.com/files/images/story/2024/1724090482_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Principal Finl Gr. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Bob Huang</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$83.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Ryan Krueger</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$86.00</td>
<td>$88.00</td>
</tr>
<tr>
<td>Scott Heleniak</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$87.00</td>
<td>$83.00</td>
</tr>
<tr>
<td>Edward Kelly</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$85.00</td>
<td>$87.00</td>
</tr>
<tr>
<td>Michael Ward</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Sell</td>
<td>$70.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Suneet Kamath</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$76.00</td>
<td>$73.00</td>
</tr>
<tr>
<td>Joshua Shanker</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Neutral</td>
<td>$94.00</td>
<td>$87.00</td>
</tr>
<tr>
<td>Wilma Burdis</td>
<td>Raymond James</td>
<td>Announces</td>
<td>Strong Buy</td>
<td>$99.00</td>
<td>-</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$96.00</td>
<td>$88.00</td>
</tr>
<tr>
<td>Suneet Kamath</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$78.00</td>
<td>$74.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Principal Finl Gr. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Principal Finl Gr compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Principal Finl Gr's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Principal Finl Gr's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/PFG/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Principal Finl Gr analyst ratings.</a>
<h2>All You Need to Know About Principal Finl Gr</h2>
Principal Financial Group Inc is a leader in Global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through diverse family of financial services companies. It operates in four business segments that are Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions. The company receives maximum revenue in the form of premiums.
<h3>Principal Finl Gr: Financial Performance Dissected</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Principal Finl Gr's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 21.18%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Principal Finl Gr's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 8.19%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Principal Finl Gr's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.18%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Principal Finl Gr's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.11%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Principal Finl Gr's debt-to-equity ratio is below the industry average at 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Analyst Ratings: Simplified</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

10 Analysts Assess Principal Finl Gr: What You Need To Know

Morgan Stanley analyst Bob Huang maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Equal-Weight and lowers the price target from $85 to $83.

Morgan Stanley Maintains Equal-Weight on Principal Finl Gr, Lowers Price Target to $83

WIIM

ACGL

Brighthouse Financial, Inc. - Common Stock

CINF

GOCO

OSCR

PLMR

RELI

SLQT

Shares of insurance companies are trading lower amid overall weakness following concerns for recently issued US economic data.

ALLY

ARES

CRBG

ENVA

HOOD

IBKR

KSPI

LPLA

NCPL

NTRS

PIPR

SOFI

TROW

UPST

VALU

Shares of companies within the broader financial sector are trading lower amid overall market weakness following weak US jobs data.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.
<ul>
<li>Keefe, Bruyette &amp; Woods cut Principal Financial Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NYSE">PFG</a>) price target from $88 to $86. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58da738bb85e9300014639dd/ryan-krueger">Keefe, Bruyette &amp; Woods analyst Ryan Krueger</a> maintained a Market Perform rating. Principal Financial shares closed at $81.43 on Monday. <a href="https://www.benzinga.com/quote/PFG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>JP Morgan raised the price target for Hologic, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOLX#NASDAQ">HOLX</a>) from $91 to $95. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/6363d9392048c30001610cbe/casey-woodring">JP Morgan analyst Casey Woodring</a> maintained an Overweight rating. Hologic shares closed at $79.64 on Monday. <a href="https://www.benzinga.com/quote/HOLX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>RBC Capital boosted the price target for F5, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIV#NASDAQ">FFIV</a>) from $182 to $205. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5880b6f377f9dd00011b0ab2/matthew-hedberg">RBC Capital analyst Matthew Hedberg</a> maintained a Sector Perform rating. F5 shares closed at $177.59 on Monday. <a href="https://www.benzinga.com/quote/FFIV/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities boosted the price target for Varonis Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRNS#NASDAQ">VRNS</a>) from $55 to $60.<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/57fdefd3ac6af40001334e3e/joel-fishbein"> Truist Securities analyst Joel Fishbein</a> reiterated a Buy rating. Varonis shares closed at $48.49 on Monday. <a href="https://www.benzinga.com/quote/VRNS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Wells Fargo boosted Universal Health Services, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UHS#NYSE">UHS</a>) price target from $200 to $255. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/6062fb3160c58c00018c213e/stephen-baxter">Wells Fargo analyst Stephen Baxter</a> maintained an Overweight rating. Universal Health shares closed at $217.43 on Monday. <a href="https://www.benzinga.com/quote/UHS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Benchmark increased the price target for ON Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>) from $80 to $90. <a href="https://widgets.benzinga.com/analyst-stock-ratings/analyst/60216a57879cba00010f246b/david-williams">Benchmark analyst David Williams</a> maintained a Buy rating. ON Semiconductor shares closed at $78.27 on Monday. <a href="https://www.benzinga.com/quote/ON/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Susquehanna increased Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) price target from $160 to $180.<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5e99cf3ed89aa400014fa918/christopher-stathoulopoulos"> Susquehanna analyst Christopher Stathoulopoulos</a> maintained a Positive rating. Royal Caribbean Cruises shares closed at $155.14 on Monday. <a href="https://www.benzinga.com/quote/RCL/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Barclays boosted Lockheed Martin Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) price target from $480 to $505. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5ae1f1fb1fe0110001f9176e/david-strauss">Barclays analyst David Strauss </a>maintained an Equal-Weight rating. Lockheed Martin shares closed at $527.64 on Monday. <a href="https://www.benzinga.com/quote/LMT/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Needham raised Amkor Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMKR#NASDAQ">AMKR</a>) price target from $40 to $45. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/60ed6112b473c600014bf1c9/charles-shi">Needham analyst Charles Shi</a> maintained a Buy rating. Amkor Technology shares closed at $37.60 on Monday. <a href="https://www.benzinga.com/quote/AMKR/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Barclays boosted GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) price target from $175 to $200. <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/585808edee7bf60001bcfa26/julian-mitchell">Barclays analyst Julian Mitchell</a> maintained an Overweight rating. GE Aerospace shares closed at $169.87 on Monday. <a href="https://www.benzinga.com/quote/GE/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/07/40038432/mcdonalds-analysts-cut-their-forecasts-after-downbeat-earnings">McDonald&#8217;s Analysts Cut Their Forecasts After Downbeat Earnings</a></li>
</ul>

Keefe, Bruyette &amp; Woods analyst Ryan Krueger maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Market Perform and lowers the price target from $88 to $86.

Keefe, Bruyette & Woods Maintains Market Perform on Principal Finl Gr, Lowers Price Target to $86

RBC Capital analyst Scott Heleniak maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Sector Perform and raises the price target from $83 to $87.

RBC Capital Maintains Sector Perform on Principal Finl Gr, Raises Price Target to $87

Wells Fargo analyst Edward Kelly maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Equal-Weight and lowers the price target from $87 to $85.

Wells Fargo Maintains Equal-Weight on Principal Finl Gr, Lowers Price Target to $85

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor&#39;s dream. But when you&#39;re an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company&#39;s earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Principal Financial in Focus
Based in Des Moines, Principal Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfg#NYSE">PFG</a>) is in the Finance sector, and so far this year, shares have seen a price change of 7.31%. Currently paying a dividend of $0.71 per share, the company has a dividend yield of 3.36%. In comparison, the Financial - Investment Management industry&#39;s yield is 2.73%, while the S&amp;P 500&#39;s yield is 1.58%.
In terms of dividend growth, the company&#39;s current annualized dividend of $2.84 is up 9.2% from last year. Over the last 5 years, Principal Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.32%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company&#39;s annual earnings per share that it pays out as a dividend. Principal Financial&#39;s current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.
PFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $7.43 per share, with earnings expected to increase 13.44% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
For instance, it&#39;s a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It&#39;s more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PFG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
<a href="https://www.zacks.com/stock/news/2310204/principal-financial-pfg-could-be-a-great-choice?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_5-2310204">To read this article on Zacks.com click here.</a>

Principal Financial Increases Dividend From $0.71 To $0.72 Per Share

Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) reported quarterly earnings of $1.63 per share which missed the analyst consensus estimate of $1.85 by 11.89 percent.

Earnings Misses

Principal Finl Gr Q2 2024 Adj EPS $1.63 Misses $1.85 Estimate

Citigroup analyst Michael Ward maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Sell and raises the price target from $68 to $70.

Citigroup Maintains Sell on Principal Finl Gr, Raises Price Target to $70

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) in the last three months.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $88.0, a high estimate of $99.00, and a low estimate of $76.00. This current average reflects an increase of 6.54% from the previous average price target of $82.60. 
<img src="https://www.benzinga.com/files/images/story/2024/1721311306_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
A comprehensive examination of how financial experts perceive Principal Finl Gr is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Suneet Kamath</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$76.00</td>
<td>$73.00</td>
</tr>
<tr>
<td>Joshua Shanker</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Neutral</td>
<td>$94.00</td>
<td>$87.00</td>
</tr>
<tr>
<td>Wilma Burdis</td>
<td>Raymond James</td>
<td>Announces</td>
<td>Strong Buy</td>
<td>$99.00</td>
<td>-</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$96.00</td>
<td>$88.00</td>
</tr>
<tr>
<td>Suneet Kamath</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$78.00</td>
<td>$74.00</td>
</tr>
<tr>
<td>Edward Kelly</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$85.00</td>
<td>$91.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Principal Finl Gr. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Principal Finl Gr compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Principal Finl Gr's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Capture valuable insights into Principal Finl Gr's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/PFG/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Principal Finl Gr analyst ratings.</a>
<h2>Get to Know Principal Finl Gr Better</h2>
Principal Financial Group Inc is a leader in Global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through diverse family of financial services companies. It operates in four business segments that are Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions. The company receives maximum revenue in the form of premiums.
<h3>Breaking Down Principal Finl Gr's Financial Performance</h3>
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Positive Revenue Trend: Examining Principal Finl Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 43.79% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Principal Finl Gr's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 13.14%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.82%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Principal Finl Gr's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.17%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Principal Finl Gr's debt-to-equity ratio is below the industry average at 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>The Significance of Analyst Ratings Explained</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Where Principal Finl Gr Stands With Analysts

Jefferies analyst Suneet Kamath maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Hold and raises the price target from $73 to $76.

Jefferies Maintains Hold on Principal Finl Gr, Raises Price Target to $76

B of A Securities analyst Joshua Shanker maintains Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) with a Neutral and raises the price target from $87 to $94.

B of A Securities Maintains Neutral on Principal Finl Gr, Raises Price Target to $94

Stock markets continue to reach <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39695135/analysts-see-upside-ahead-for-amazon-stock-as-prime-day-approaches">record highs lately</a>, driven in great part by advances in the financial, consumer discretionary and utilities sectors.
The Dow Jones Industrial Average (DJI) hit an all-time market-close high of 39,908 points on May 15. Since then, it has fallen to 38,112 points on May 30, but it has made its way back up to 39,300 points as of Tuesday&#8217;s mid-day trading.
S&amp;P 500 communications services (SPLRLC) hit a record high of 322.31 points on Friday before declining to 320.49 points on Tuesday.
Also Read: <a href="https://www.benzinga.com/top-stories/24/07/39586631/5-biggest-winners-5-biggest-losers-from-dow-jones-industrial-average-in-first-half-2024">5 Biggest Winners, 5 Biggest Losers From Dow Jones Industrial Average In First Half 2024</a>
The tech-heavy Nasdaq Composite (IXIC) reached an all-time high of $18,530.90 in Tuesday&#8217;s mid-morning trading before cooling off to $18,445.27 by mi-day.
The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) has gained 1.01% by mid-day on Tuesday. The top mover within the exchange-traded fund has been Principal Financial Group (PFG), which has gained 3.69% to $81.36.
The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) has risen 1.09% by mid-day on Tuesday as Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) jumped 2.77% to &amp;95.45.
The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) picked up 0.85% as Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) gained 4.23% to $263.64.
Big tech firms have been lifting the S&amp;P 500 in recent sessions, Barron&#8217;s <a href="https://www.barrons.com/livecoverage/stock-market-today-070824/card/it-s-not-just-tech-here-s-what-s-driving-the-market-s-gains--wnH0MPxpvvHrVFMQsiI2">reported</a>. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) improved 1.68% to $130.35 by mid-day Tuesday.
Stocks remain near record highs as Federal Reserve Chairman Jerome Powell <a href="https://www.benzinga.com/markets/equities/24/07/39692638/powell-says-labor-market-strong-not-overheated-fed-chair-awaits-right-moment-to-cut-interest-rat">gave positive remarks</a> on the economy and the job market on Tuesday during his semiannual testimony before the Senate Banking Committee.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/06/39566020/s-p-500-ends-first-half-shy-of-all-time-highs-here-are-the-leaders-and-laggards-and-5-stocks-tha">S&amp;P 500 Ends First Half Shy Of All-Time Highs. Here Are The Leaders And Laggards — And 5 Stocks That Could Outperform In Next 6 Months</a></li>
</ul>
Image: Midjourney

Economics

Federal Reserve

NVDA

TSLA

Select Sector SPDR-Consumer Discretionary

Stock Markets Keep Hitting Record Highs: What's Driving The Action?

Raymond James analyst Wilma Burdis upgrades Principal Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PFG#NASDAQ">PFG</a>) from Market Perform to Strong Buy and announces $99 price target.

Upgrades

Raymond James Upgrades Principal Finl Gr to Strong Buy, Announces $99 Price Target

74 S&P 500 stocks that can beat the cash yield - BofA

Principal Financial: Capital Pressures Now Reflected In Valuation (Upgrade)

In a report released today, Bob Huang from Morgan Stanley maintained a Hold rating on Principal Financial (PFG – Research Report), with a price tar...

Morgan Stanley Sticks to Its Hold Rating for Principal Financial (PFG)

PGIM said to raise global private credit fund to vie against Blackstone, Ares, others

Principal Financial Group names Deanna Strable as COO

The latest announcement is out from Principal Financial (PFG). Deanna Strable has been appointed as the new President and Chief Operating Officer o...

Principal Financial Announces Key Leadership Appointments

Executive reshuffles: PFG, IRDM, AYRO and XRAY Companies in focus

15 Upcoming Dividend Increases Including A King

Dividend Champion, Contender, And Challenger Highlights: Week Of September 1

Wells Fargo's 'Value Equity List' – Stocks with potential that trade at a discount

AMAT

AMCR

AMGN

AMSF

AYRO

BACRP

BOTJ

BWXT

CBSH

CCBG

CCOI

CHKP

CHRW

CNOB

CTAS

CTVA

CWEN

EBMT

EBTC

EVRG

EXPO

FOXA

FRME

GILD

GOLF

HBAN

HOMB

INGR

IRDM

JKHY

KLAC

KVUE

LANC

LFUS

LRCX

MAIN

MATX

MBWM

MCHP

MDLZ

MKTX

MSEX

MTRN

MUSA

NRIM

ODFL

OTIS

PATK

PCAR

PPLL

QCOM

SBSI

SCHD

SIGI

SOJC

SSNC

STEP

TCBK

ULTA

UNTY

VICI

VTRS

WAFD

WING

WSBC

WTRG

XRAY

Press Releases

Principal to Announce Second Quarter 2024 Financial Results

Principal® Adds New Annuity With Guaranteed Lifetime Income Option

Principal Financial Group Announces Second Quarter 2024 Results

Insurance

CENTRO BENEFITS RESEARCH CONTINUES EXPANSION OF INDUSTRY CONNECTIVITY WITH THE ADDITION OF PRINCIPAL® RFP AND QUOTING API

CFO Deanna Strable to Speak at 2024 KBW Insurance Conference

Principal® names Deanna Strable President and Chief Operating Officer

Empowering Futures: Principal® Hosts Girl Scout Takeover Day

2024 Principal® Charity Classic raised record $8.6 million for Iowa youth

Principal Screens ¡Hola Cine! at Des Moines Art Center

Principal® Survey Reveals the Effects of Caregiving on Work and Employee Retention

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Comments

Principal Finl Gr

Principal Finl Gr (PFG) Forecast

Principal Finl Gr (NASDAQ:PFG) Stock, Quote.Headers.trade-ideas