Prudential Financial stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy PRU?
Prudential Financial Inc's stock fell by 5.02% as it crossed below its 5-day SMA, reflecting a challenging trading environment.
The decline in Prudential's stock price comes amid broader market weakness, with the Nasdaq-100 down 0.26% and the S&P 500 down 0.29%. This suggests a sector rotation, as investors may be reallocating their portfolios in response to the overall market conditions.
Investors should monitor Prudential's performance closely, as the stock's movement may indicate shifts in investor sentiment and potential opportunities for recovery in the future.
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Analyst Views on PRU
Wall Street analysts forecast PRU stock price to rise
8 Analyst Rating
0 Buy
8 Hold
0 Sell
Hold
Current: 94.850
Low
113.00
Averages
120.00
High
125.00
Current: 94.850
Low
113.00
Averages
120.00
High
125.00
About PRU
Prudential Financial, Inc. is a financial services provider and global investment manager. The Company offers a range of financial products and services, including life insurance, annuities, retirement-related products and services, mutual funds, and investment management. It offers these products and services to individual and institutional customers through its own and third-party distribution networks. It operates in the United States, Asia, Europe and Latin America. Its segment includes PGIM, U.S. Businesses, International Businesses, and Corporate and Other operations. The PGIM segment provides investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies, to institutional and retail clients and its general account. The U.S. Businesses segment consists of the retirement strategies, group insurance and individual life products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Prudential Extends New Sales Suspension in Japan
- Financial Impact Estimate: Prudential expects the extended suspension of new sales at its Japan unit to result in a pretax adjusted operating income impact of $525M-$575M in 2026 and $400M-$450M in 2027, reflecting the annualized effects of surrenders and new sales suspension for most of 2026.
- Governance Restructuring: The company is restructuring governance and sales practices at Prudential Life, focusing on sustainable actions during the suspension to improve customer outcomes, including enhanced oversight and transparency in sales activities.
- Customer Trust Restoration: Prudential has established an independent third-party customer reimbursement committee funded with $70M to address customer reimbursement inquiries, although these inquiries do not confirm misconduct.
- Market Impact Assessment: The suspension is estimated to impact Prudential's Japan earnings by approximately 18% and overall Prudential Financial by about 8%, indicating that the company's foundational business and long-term commitment in the Japanese market remain intact.
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Citing Constraints: The request cites listing-related constraints as the reason for the extension.
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- Earnings Support: UnitedHealth Group (UNH) reported Q1 adjusted EPS of $9.23, significantly above the consensus of $6.57, raising its full-year forecast to above $18.25, which has driven health insurance stocks higher and reflects industry resilience.
- Fed Nomination in Focus: Kevin Warsh's confirmation hearing before the Senate Banking Committee is drawing attention; despite facing an investigation hurdle, Warsh's commitment to an independent Fed and prioritizing inflation control could influence future monetary policy directions.
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- Strong Economic Data: March retail sales rose by 1.7% month-over-month, exceeding expectations of 1.4%, marking the largest increase in a year, indicating robust consumer spending that may support stock prices.
- Oil Price Recovery: WTI crude oil prices rebounded by over 2% as market speculation intensified regarding Iran's participation in upcoming peace talks, potentially exacerbating the global energy crisis.
- Impressive Earnings Reports: UnitedHealth Group reported Q1 adjusted EPS of $9.23, significantly above the consensus of $6.57, leading to a stock price increase of over 7% and raising its full-year earnings forecast, showcasing strong performance in the health insurance sector.
See More
Prudential Extends New Sales Suspension in Japan
- Financial Impact Estimate: Prudential expects the extended suspension of new sales at its Japan unit to result in a pretax adjusted operating income impact of $525M-$575M in 2026 and $400M-$450M in 2027, reflecting the annualized effects of surrenders and new sales suspension for most of 2026.
- Governance Restructuring: The company is restructuring governance and sales practices at Prudential Life, focusing on sustainable actions during the suspension to improve customer outcomes, including enhanced oversight and transparency in sales activities.
- Customer Trust Restoration: Prudential has established an independent third-party customer reimbursement committee funded with $70M to address customer reimbursement inquiries, although these inquiries do not confirm misconduct.
- Market Impact Assessment: The suspension is estimated to impact Prudential's Japan earnings by approximately 18% and overall Prudential Financial by about 8%, indicating that the company's foundational business and long-term commitment in the Japanese market remain intact.
See More
NEWMONT SEEKS EXTENSION UNTIL 2027 FOR COMPLIANCE DUE TO LISTING-RELATED LIMITATIONS – SOURCES
Extension Requested: A request has been made for an extension until 2027 to comply with certain regulations.
Citing Constraints: The request cites listing-related constraints as the reason for the extension.
See More
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- Market Reaction Muted: Trump's announcement of the ceasefire extension with Iran alleviated concerns over potential U.S. strikes, yet investors reacted with indifference, as Asian stocks showed mixed results while European markets edged higher, indicating a gradual market adaptation to geopolitical risks.
- Oil Price Volatility: Following Trump's announcement, international benchmark Brent crude and U.S. West Texas Intermediate futures fluctuated, trading at $99.81 and $90.86 per barrel respectively, reflecting elevated prices while market expectations for future oil prices begin to shift back to fundamentals.
- Global Equities Rebound: Global equity markets have reclaimed pre-war levels, with the MSCI World Index rebounding to nearly 2% above its March 2 close, suggesting that investors are unwinding geopolitical risk hedges as the conflict remains unresolved.
- Inventory Pressure Intensifies: Despite the ceasefire extension, the outlook for further peace negotiations remains uncertain, with analysts noting that global inventories will continue to draw down, predicting Brent crude prices hovering around $80 per barrel by year-end, posing greater challenges for policymakers.
See More
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- Company Update: Prudential Financial has cut its stake in a company called Jeffries from a buy rating.
- Target Price Adjustment: The target price for Jeffries has been reduced from $124 to $98.
See More
US Stocks Rise on Strong Retail Sales and Earnings Reports
- Strong Retail Sales: US March retail sales rose 1.7% month-over-month, exceeding expectations of 1.4% and marking the largest increase in a year, indicating robust consumer spending that could bolster economic recovery and market confidence.
- Earnings Support: UnitedHealth Group (UNH) reported Q1 adjusted EPS of $9.23, significantly above the consensus of $6.57, raising its full-year forecast to above $18.25, which has driven health insurance stocks higher and reflects industry resilience.
- Fed Nomination in Focus: Kevin Warsh's confirmation hearing before the Senate Banking Committee is drawing attention; despite facing an investigation hurdle, Warsh's commitment to an independent Fed and prioritizing inflation control could influence future monetary policy directions.
- International Tensions Impact Oil Prices: WTI crude oil prices fell over 1% as Iran is set to attend peace talks with the US, while the closure of the Strait of Hormuz threatens to exacerbate the global energy crisis, affecting market sentiment.
See More
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- Market Performance: The S&P 500 Index fell by 0.13%, and the Dow Jones Industrial Average also declined by 0.13%, while the Nasdaq 100 saw a slight increase of 0.02%, reflecting market volatility influenced by oil price rebounds and economic data.
- Strong Economic Data: March retail sales rose by 1.7% month-over-month, exceeding expectations of 1.4%, marking the largest increase in a year, indicating robust consumer spending that may support stock prices.
- Oil Price Recovery: WTI crude oil prices rebounded by over 2% as market speculation intensified regarding Iran's participation in upcoming peace talks, potentially exacerbating the global energy crisis.
- Impressive Earnings Reports: UnitedHealth Group reported Q1 adjusted EPS of $9.23, significantly above the consensus of $6.57, leading to a stock price increase of over 7% and raising its full-year earnings forecast, showcasing strong performance in the health insurance sector.
See More
