Home Sectors Financial Services Stock Analysis: Primerica (NYSE: PRI)

Stock Analysis: Primerica (NYSE: PRI)

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Primerica is in the life insurance industry and financial services sector. The company CEO is Glenn J. Williams. Primerica Inc is a life insurance company that distributes its products to middle income households in the United States and Canada. The company assists its clients in terms of life insurance, mutual funds, annuities and other financial products.

Previous Intraday Trading Performance:

The PRI stock showed a previous change of 3.45% with an open at 118.09 and a close of 120.34. It reached an intraday high of 120.50 and a low of 117.91.

Business Wire:  Primerica’s Financial Security Scorecard Reveals Lack of Financial Preparedness Among Middle-Income Canadians

Liquidity:

The stock has a market cap of $5.1b with 42.3m shares outstanding, of which the float is 41.9m shares. Trading volume reached 154,709 shares compared to its average volume of 188,596 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Primerica shares returned 2.25% and in the past 30 trading days it returned -5.44%. Over three months, it changed -2.89%. In one year it has changed 21.90% and within that year its 52-week high was 132.17 and its 52-week low was 90.28. PRI stock is 33.30% above its 52 Week Low.

Our calculations show a 200 day moving average of 116.70 and a 50 day moving average of 124.39. Currently PRI stock is trading 3.12% above its 200 day moving average and may be a good opportunity to buy.

Business Wire:  Primerica’s Financial Security Scorecard Reveals Lack of Financial Preparedness Among Middle-Income Canadians

Earnings:

The last annual fiscal EPS for the company was reported at 7.34 that ended on 31st of December 2018, which according to the previous close, that is a PE of 16.40. Based on 2 analyst estimates, the consensus EPS for the next quarter is 1.72. The TTM EPS is 7.34, which comes to a TTM PE of 16.40. Historically, the PE high was 23.20 and the PE low was 10.00. If the stock reached its PE low, that would represent a price of 73.38, which is a decrease of -39.02%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/07/2019): 1.83
4thQtr of 2018 (Reported on 02/07/2019): 1.99
3rdQtr of 2018 (Reported on 11/06/2018): 1.94
2ndQtr of 2018 (Reported on 08/07/2018): 1.95
1stQtr of 2018 (Reported on 05/08/2018): 1.46

The dividend per share is currently 1.36, which is a dividend yield of 1.13%. Also, the payout ratio is 18.53%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 110.71, which means it may be overvalued by -8.70%.

Indicators to Watch:

Short-interest was 800,387, which was 1.89% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.87. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.45.

Business Wire:  LP Announces Acquisition of Siding Prefinisher

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 23.80%, return on assets is 2.75%, profit margin is 17.31%, price-to-sales is 2.51 and price-to-book is 3.24.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 2  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.