Zacks Research Lowers Earnings Estimates for Prudential Financial

Prudential Financial, Inc. (NYSE:PRU - Free Report) has recently come under scrutiny as investment analysts at Zacks Research have revised their earnings estimates for the company. In a report released on February 25th, Zacks Research analyst T. De indicated a decrease in the earnings per share (EPS) forecast for the third quarter of 2025, now estimating it at $3.70 per share, down from a previous projection of $3.81. This revision reflects ongoing challenges facing the financial services provider.

Further looking at Prudential Financial's financial outlook, the consensus estimate for the company's overall earnings for the current full year stands at $14.36 per share. Zacks Research has also made additional forecasts, estimating the Q4 2025 earnings at $3.60 EPS, the FY2025 earnings at $14.22 EPS, Q2 2026 earnings at $3.87 EPS, and Q3 2026 earnings at $3.69 EPS.

Analyst Ratings and Price Targets

Prudential Financial has received varying opinions from analysts, with multiple reports impacting its stock performance. Keefe, Bruyette & Woods recently downgraded their target price from $129.00 to $125.00 while designating a "market perform" rating for the company on February 12th. Conversely, Evercore ISI shifted their stance from an "underperform" rating to an "inline" rating, raising their price target from $117.00 to $140.00 on November 14th. Barclays likewise increased its price target from $128.00 to $134.00, giving the stock an "equal weight" rating on February 5th.

TD Cowen also adjusted their price objective, raising it from $130.00 to $133.00 and maintaining a "hold" rating. Jefferies Financial Group increased their target price from $149.00 to $152.00, indicating a "buy" rating on December 10th. Overall, analyst coverage on Prudential Financial consists of one sell rating, ten hold ratings, one buy rating, and one strong buy rating, resulting in a consensus rating of "Hold" and an average price target of $125.69 according to data from MarketBeat.com.

Current Stock Performance

As of Friday, shares of NYSE PRU opened at $112.72. Prudential Financial currently showcases a market capitalization of $40.35 billion, a price-to-earnings (P/E) ratio of 15.09, and a price-to-earnings growth (PEG) ratio of 0.98. The stocks' performance reflects a one-year low of $104.44 and a one-year high of $130.55, with a 50-day moving average price of $116.41 and a 200-day moving average price of $119.72.

Financial Results and Dividends

Its most recent earnings announcement, on February 4th, revealed an EPS of $2.96 for the quarter, which fell short of analysts' expectations, which estimated $3.36 by $0.40. Prudential Financial reported a net margin of 4.01% and a return on equity of 15.86%. In terms of dividends, the company has declared a quarterly dividend of $1.35 per share, reflecting an increase from the previous quarterly dividend of $1.30, scheduled for payment on March 13th, with a record date of February 18th. This results in an annualized dividend of $5.40, yielding a rate of 4.79%. Prudential's dividend payout ratio sits at 72.29%.

Institutional Holdings

Recent adjustments by institutional investors indicate ongoing interest in Prudential Financial. For instance, Savant Capital LLC incremented its holdings in the company by 0.6%, owning 14,382 shares valued at approximately $1.705 million. Similarly, Grove Bank & Trust raised its stake by 65.9%, now owning 219 shares worth about $26,000. Other investors, such as Avidian Wealth Enterprises LLC, added to their positions, reflecting steady institutional support for the company's future prospects. Currently, around 56.83% of Prudential Financial's stock is held by institutional investors.

About Prudential Financial

Prudential Financial, Inc. operates through various segments including PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses. The company provides a wide range of insurance, investment management, and other financial products and services both in the United States and globally.

Prudential, Earnings, Analysts