Assessing Principal Financial Group: Insights From 10 Financial Analysts
Providing a diverse range of perspectives from bullish to bearish, 10 analysts have published ratings on Principal Financial Group (NASDAQ:PFG) in the last three months.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 3 | 6 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 2 | 0 |
| 3M Ago | 0 | 0 | 2 | 4 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $75.8, a high estimate of $89.00, and a low estimate of $65.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.56%.
Understanding Analyst Ratings: A Comprehensive Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive Principal Financial Group. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Barnidge | Piper Sandler | Raises | Overweight | $89.00 | $88.00 |
| Bob Huang | Morgan Stanley | Raises | Underweight | $71.00 | $67.00 |
| Ryan Krueger | Keefe, Bruyette & Woods | Raises | Market Perform | $87.00 | $86.00 |
| Bob Huang | Morgan Stanley | Raises | Underweight | $67.00 | $65.00 |
| Ryan Krueger | Keefe, Bruyette & Woods | Lowers | Market Perform | $86.00 | $88.00 |
| John Nadel | UBS | Lowers | Neutral | $80.00 | $93.00 |
| Elyse Greenspan | Wells Fargo | Raises | Underweight | $69.00 | $68.00 |
| Alex Scott | Barclays | Lowers | Underweight | $76.00 | $80.00 |
| Elyse Greenspan | Wells Fargo | Lowers | Underweight | $68.00 | $74.00 |
| Bob Huang | Morgan Stanley | Lowers | Underweight | $65.00 | $77.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Principal Financial Group. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Principal Financial Group compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Principal Financial Group's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Principal Financial Group's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Principal Financial Group analyst ratings.
All You Need to Know About Principal Financial Group
Principal Financial Group Inc is a financial services provider. It offers various financial products and services including retirement, asset management, and workplace benefits and protection solutions to individuals and institutional clients. The company, along with its subsidiaries, operates in the following reportable segments; Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Maximum revenue is generated from the Retirement and Income Solutions segment which provides workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities (including RILAs), pension risk transfer, and investment services to businesses, their employees, and other individuals.
A Deep Dive into Principal Financial Group's Financials
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Principal Financial Group's revenue growth over a period of 3M has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -8.82%. This indicates a decrease 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: Principal Financial Group's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.3%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.43%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.02%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Principal Financial Group's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.39.
How Are Analyst Ratings Determined?
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.
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.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.