RBC Capital Reiterates a Buy Rating on Principal Financial

By Ryan Adsit

In a report released today, Eric Berg from RBC Capital reiterated a Buy rating on Principal Financial (NYSE: PFG), with a price target of $61. The company’s shares closed yesterday at $57.12, close to its 52-week high of $58.85.

According to TipRanks.com, Berg is a 3-star analyst with an average return of 3.2% and a 49.1% success rate. Berg covers the Financial sector, focusing on stocks such as Lincoln National Corp., Prudential Financial, and Franklin Resources.

Principal Financial has an analyst consensus of Moderate Buy, with a price target consensus of $53.

Based on Principal Financial’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $2.83 billion and quarterly net profit of $308 million. In comparison, last year the company earned revenue of $3.24 billion and had a net profit of $300 million.

Based on the recent corporate insider activity of 116 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PFG in relation to earlier this year. Most recently, in February 2014, Dennis Ferro, a Director at PFG sold 1,000 shares for a total of $44,800.

The Principal Financial Group, Inc. is a global financial company, which offers businesses, individuals and institutional clients financial products and services. Its products and services include retirement solutions, insurance, and investment products through the company’s diverse family of financial services companies and national network of financial professionals. The company operates its business through following segments: Retirement & Income Solutions, Principal Global Investors, Principal International, U.S. Insurance Solutions and Corporate. The Retirement & Income Solutions segment consists of asset accumulation operations that provide retirement savings and related investment products and services. It also offers annuities, mutual funds and bank products and services to the employees, customers and other individuals. The Principal Global Investors segment consists of asset management operations, which offers an extensive range of equity, fixed income and real estate investments as well as specialized overlay and advisory services to institutional investors. The Principal International segment offers retirement products and services, annuities, mutual funds, institutional asset management and life insurance accumulation products through operations in Brazil, Chile, China, Hong Kong SAR, India, Indonesia, Malaysia, Mexico, Singapore and Thailand. The U.S. Insurance Solutions segment provides individual life insurance as well as specialty benefits in the U.S. Its life insurance products include universal and variable universal life insurance and traditional life insurance. The Corporate segment manages the assets representing capital that has not been allocated to any other segment. The company was founded by Edward A. Temple in 1879 and is headquartered in Des Moines, IA.