Bank of America Securities Maintains Buy Rating on Prudential with $32.97 Target

Bank of America Securities maintains a Buy rating on Prudential with a price target of $32.97. The company's shares closed at $26.23. Analyst Andrew Sinclair has an average return of 11.4% and a 62.16% success rate on recommended stocks. The consensus rating is Hold with a $28.00 average price target. Prudential reported a quarterly revenue of $5.39 billion and a net profit of $2.14 billion.

Prudential Financial, Inc. (PRU) has recently seen a mix of analyst ratings and changes in institutional holdings, reflecting the company's ongoing performance and investor sentiment. The company reported its second-quarter earnings, beating analysts' estimates despite a year-over-year decline in revenue. Here's a detailed look at Prudential's recent performance and analyst ratings.

Earnings Report

Prudential Financial reported adjusted operating income of $3.58 per share for the second quarter, exceeding the Zacks Consensus Estimate by 11.5% [2]. Total revenues amounted to $13.5 billion, which was 0.2% above expectations but declined 2.4% year-over-year due to lower premiums [2]. The company's net margin was 2.75%, and its return on equity was 15.80% [1]. Despite these figures, Prudential's shares have added about 5% since the last earnings report, outperforming the S&P 500 [2].

Analyst Ratings

Analysts have provided a range of ratings and price targets for Prudential Financial. Bank of America Securities maintains a Buy rating with a price target of $32.97, while the consensus rating is Hold with an average price target of $28.00 [1]. Other notable ratings include Piper Sandler's neutral rating with a target price of $108.00 and Wells Fargo's equal weight rating with a target price of $113.00 [1]. Morgan Stanley upgraded their rating to equal weight with a target price of $117.00, while Keefe, Bruyette & Woods set a market perform rating with a target price of $117.00 [1].

Institutional Holdings

Northwest & Ethical Investments L.P. trimmed its stake in Prudential Financial by 24.9% during the first quarter, reducing its holdings to 35,632 shares [1]. Meanwhile, several hedge funds increased their holdings in Prudential Financial, with Steward Partners Investment Advisory LLC growing its stake by 8.6% and Ethic Inc. increasing its holdings by 4.0% [1]. These changes reflect the ongoing interest in Prudential Financial from institutional investors and hedge funds.

Dividend Announcement

Prudential Financial announced a quarterly dividend of $1.35 per share, payable on Thursday, September 11, 2025, to investors of record as of Tuesday, August 19, 2025 [1]. This represents a $5.40 annualized dividend and a yield of 4.9%, with a payout ratio of 119.73%.

Conclusion

Prudential Financial's recent earnings report and analyst ratings provide a mixed picture of the company's performance. While the company beat earnings estimates, its revenue declined year-over-year, and analysts have a range of ratings and price targets. Institutional investors continue to hold significant positions in Prudential Financial, reflecting ongoing interest in the company. As Prudential prepares for its next earnings release, investors should closely monitor the company's performance and analyst ratings to make informed investment decisions.

References

[1] https://www.marketbeat.com/instant-alerts/filing-northwest-ethical-investments-lp-has-398-million-stock-position-in-prudential-financial-inc-pru-2025-08-18/
[2] https://ca.finance.yahoo.com/news/prudential-pru-5-since-last-153016709.html