Primerica (NYSE:PRI) to Repurchase $475.00 million in Stock

Primerica (NYSE:PRI) announced that its Board of Directors has approved a share buyback program on Wednesday, November 19th, RTT News reports. The company plans to buyback $475.00 million in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 5.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Primerica Trading Down 0.7%

NYSE:PRI traded down $1.92 during trading hours on Wednesday, reaching $256.57. 240,572 shares of the company traded hands, compared to its average volume of 192,962. Primerica has a 1 year low of $230.98 and a 1 year high of $307.91. The stock has a market capitalization of $8.19 billion, a P/E ratio of 11.79 and a beta of 0.96. The business’s 50-day moving average price is $266.40 and its two-hundred day moving average price is $266.99.

Primerica (NYSE:PRI) last announced its quarterly earnings results on Wednesday, November 5th. The financial services provider reported $6.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.52 by $0.81. The firm had revenue of $838.88 million for the quarter, compared to the consensus estimate of $817.81 million. Primerica had a return on equity of 31.75% and a net margin of 22.36%.The company’s quarterly revenue was up 8.5% on a year-over-year basis. During the same period in the prior year, the company posted $4.83 earnings per share. As a group, equities analysts anticipate that Primerica will post 20.6 EPS for the current year.

Primerica Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Friday, November 21st will be paid a $1.04 dividend. The ex-dividend date of this dividend is Friday, November 21st. This represents a $4.16 annualized dividend and a dividend yield of 1.6%. Primerica’s dividend payout ratio (DPR) is 19.12%.

Wall Street Analyst Weigh In

PRI has been the topic of several research reports. Piper Sandler set a $292.00 target price on Primerica and gave the stock a “neutral” rating in a research report on Tuesday, October 7th. Weiss Ratings reissued a “buy (b)” rating on shares of Primerica in a report on Wednesday, October 8th. Zacks Research upgraded shares of Primerica from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 21st. Keefe, Bruyette & Woods decreased their price target on Primerica from $320.00 to $315.00 and set a “market perform” rating on the stock in a research report on Tuesday, November 11th. Finally, Jefferies Financial Group lowered their price objective on Primerica from $293.00 to $283.00 and set a “hold” rating on the stock in a research report on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $309.00.

Insider Buying and Selling

In other Primerica news, President Peter W. Schneider sold 2,000 shares of the stock in a transaction on Monday, November 17th. The shares were sold at an average price of $255.30, for a total transaction of $510,600.00. Following the completion of the transaction, the president owned 7,301 shares in the company, valued at $1,863,945.30. This trade represents a 21.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Glenn J. Williams sold 2,500 shares of Primerica stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $259.65, for a total value of $649,125.00. Following the completion of the transaction, the chief executive officer owned 33,892 shares of the company’s stock, valued at approximately $8,800,057.80. This trade represents a 6.87% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.61% of the company’s stock.

Primerica Company Profile

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.