Prudential's 3.27% Slide and $240M Volume Surge Propel It to 481st in Liquidity Amid $100M FTC Settlement

Prudential Financial (PRU) closed on August 7, 2025, with a 3.27% decline in share price amid a surge in trading volume. The stock recorded $240 million in daily turnover, marking a 41.37% increase from the previous session and ranking 481st in market liquidity. The drop followed a $100 million settlement with the U.S. Federal Trade Commission (FTC) over allegations that a former subsidiary, Assurance IQ, misrepresented health insurance coverage to consumers. The resolution addressed claims of deceptive marketing practices that led to inadequate policy terms for buyers.

Despite the settlement, the company reaffirmed its quarterly dividend policy, maintaining payouts amid strong second-quarter sales performance. Technical indicators showed mixed signals: a KDJ golden cross and RSI oversold conditions on the 15-minute chart were offset by bearish Marubozu patterns observed earlier in the week. These conflicting signals reflected short-term volatility driven by regulatory pressures and earnings momentum. PGIM, Prudential’s asset management arm, also announced a $4.2 billion fundraising for a middle-market direct lending fund, though the move had limited immediate impact on equity valuations.

Historical backtesting of high-volume stock strategies revealed significant outperformance in volatile markets. A strategy purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, far exceeding the benchmark’s 29.18% gain. This highlights the role of liquidity concentration in capturing short-term price movements, particularly during periods of macroeconomic uncertainty. However, the approach carries inherent risks, including exposure to rapid reversals in high-liquidity assets.