Updated Aug 14 at 11:16am ET.
Follow Prudential Financial to never miss an important update.
Prudential confirmed its next dividend payment of $1.40 per share. To receive the payment, you must own the stock by the end of the day on August 25. This is a routine update that keeps the payout at the same level as the previous quarter. Consistent dividends are a core part of the reason many people own this stock. The company generates steady cash from its insurance and investment management businesses, and it uses a large portion of that cash to pay shareholders while it shifts toward less market-sensitive business lines.
Source: Business Wire
Tax authorities in mainland China have reportedly begun collecting income tax on gains from offshore insurance policies. This matters because many wealthy individuals in China buy insurance in places like Hong Kong to move money out of the country or protect their wealth. If these returns are taxed, those policies become less attractive. While the report specifically mentioned the broader insurance sector, the sharp drop in the stock shows how much the market cares about any threat to the flow of Chinese capital into global insurance products.
Source: Reuters
Adjusted operating profit, which strips out one-time items to show how the core business is doing, came in at $4.08 per share. This was well ahead of the $3.52 analysts expected. Revenue also topped forecasts at about 14.8 billion dollars.
The results were helped by growth in PGIM, the company's investment management arm, and its individual life insurance business. This is a good sign for the plan to shift toward fee-based asset management and away from products that are more sensitive to interest rate swings. Book value, a measure of what the company's assets are worth after debts, rose to about $90.50 per share.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
PGIM, the company's investment management branch, has started construction on a luxury apartment complex in Denver. This is a routine part of its real estate investment strategy, where it manages money for clients by building and owning high-quality property. While a single building does not change the company's value, it shows the investment arm is actively putting capital to work in the housing market.
Source: PRNewsWire
PGIM is buying the remaining stake in Deerpath Capital, a firm that lends money directly to mid-sized businesses. This move helps the company expand in private credit, a popular area where non-bank lenders provide loans to companies. By owning the whole firm, PGIM can offer more lending options to its institutional clients. This fits the broader goal of growing the asset management business to generate more steady fee income.
Source: Business Wire
Analysts recently raised several price targets following the company's second-quarter earnings report. Most analysts are neutral, with 30 of 37 experts holding a cautious view and the average target sitting 16% below the current share price.
Management has a habit of clearing the bar, beating analyst profit targets in six of the last eight quarters. This suggests a reliable handle on their costs and investment returns.
| Expectation | |
|---|---|
| EPS | $3.44 |
| Revenue | $14.97B |
Business Wire · Press release · Aug 13
PRNewsWire · Press release · Aug 12
Business Wire · Press release · Aug 11
Seeking Alpha · Opinion · Aug 5
Reuters · Aug 5
Reuters · Aug 4
Follow Prudential Financial to get the latest and most important updates.
Follow PRU