Beyond The Numbers: 5 Analysts Discuss Primerica Stock

Analysts' ratings for Primerica PRI over the last quarter vary from bullish to bearish, as provided by 5 analysts.

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.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $260.6, a high estimate of $300.00, and a low estimate of $236.00. This upward trend is evident, with the current average reflecting a 4.32% increase from the previous average price target of $249.80.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Primerica. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• 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 Primerica. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Primerica compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Primerica's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Primerica's market standing. Stay informed and make well-considered decisions with 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.

Financial Insights: Primerica

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Primerica displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 8.15%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Primerica's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.15%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Primerica's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.05%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.01%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Primerica's debt-to-equity ratio stands notably higher than the industry average, reaching 0.95. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

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 supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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