Prudential Financial Inc. (PRU) shares are trading at lower $67.77 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $71.36.
To add more color to this target, the company’s high over the last year is $97.24 and the low is $38.62. Over the last 52 weeks, PRU is down -15.38% while the S&P 500 is up 19.44%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PRU reported a profit of $-2.29 billion. Prudential Financial Inc. also saw revenues decrease to $12.12 billion. In addition, PRU has free cash flow of $13.48 billion as of 06-2020. The company’s EBITDA came in at -$2.28 billion which compares well with its peers.
PRU booked profit margins of -0.30%, its Return on Equity (ROE) is -0.30%, and its Return on Assets is 0.00%. All told, it is clear that, PRU needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PRU has a short ratio of 2.60 and outstanding shares of 394.60M.
PRU has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.67 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.62. Investors should also keep an eye on sector updates as PRU has historically followed its peers on positive news.
All told, Prudential Financial Inc. PRU has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PRU represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Prudential Financial Inc. PRU is now commanding a market cap of 26.66B and a float of 394.00M. PRU is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PRU stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in PRU, either long or short, and we have not been compensated for this article.