What 7 Analyst Ratings Have To Say About Primerica

7 analysts have shared their evaluations of Primerica PRI during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $265.0, a high estimate of $300.00, and a low estimate of $236.00. Observing a 5.58% increase, the current average has risen from the previous average price target of $251.00.

Investigating Analyst Ratings: An Elaborate Study

The standing of Primerica among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• 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 Primerica. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Primerica compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Primerica's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Primerica's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Primerica analyst ratings.

Delving into Primerica's Background

Primerica Inc is a provider of financial services to middle-income households in the United States and Canada. The company offers life insurance, mutual funds, annuities, and other financial products, distributed on behalf of third parties. Primerica has three main subsidiaries: Primerica Financial Services, a marketing company; Primerica Life Insurance Company, a principal life insurance underwriting entity; and PFS Investments, which offers investment and savings products, brokerage services, and registered investment advisory. It has four segments Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. Geogriphically, it derives a majority of its revenue from the US.

Key Indicators: Primerica's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Primerica showcased positive performance, achieving a revenue growth rate of 16.7% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Primerica's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.13%, 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 0.05%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Primerica's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.01%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.95, Primerica faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.