Principal Financial Group Stock Soars 1.43% to 2025 High

Principal Financial Group's stock price rose to its highest level since May 2025 today, with an intraday gain of 1.43%.

The strategy of buying PFG shares after they reached a recent high and holding for one week yielded a 6.07% return, underperforming the benchmark by 50.92%. With a CAGR of 2.41% and a Sharpe ratio of 0.09, the strategy faced significant volatility and a maximum drawdown of -20.57%, indicating a challenging risk-return profile.

Analysts have shown a mixed sentiment towards Principal Financial Group (PFG) in the past three months. The average price target has decreased by 3.56%, reflecting a shift in market expectations. Ratings range from "overweight" to "underweight" and "market perform," indicating varied views on the company's future performance. Piper Sandler, for instance, raised its price target from $88.00 to $89.00 while maintaining an "overweight" rating, suggesting a positive outlook. Conversely, Morgan Stanley adjusted its price target from $67.00 to $71.00 but kept an "underweight" rating, signaling a more cautious approach.

Principal Financial Group has faced challenges in revenue growth, with a reported decline of approximately 8.82% as of March 31, 2025. This decline highlights difficulties in maintaining top-line earnings compared to industry peers. Additionally, the company's net margin, return on equity (ROE), and return on assets (ROA) are below industry benchmarks, indicating struggles in achieving strong profitability and efficient asset utilization. These financial performance issues contribute to the evolving market sentiment and stock price movements of Principal Financial Group.