Prudential Financial, Inc.NYSE
Fri, Dec. 2, 11:51 AM
- The financial sector is taking a breather from its staggering post-election run, with a post-jobs report dip in rates a good enough excuse for satiated bulls to cash in some chips.
- XLF -1%, KBE -0.7%, KRE -0.7%.
- Individual issues: Bank of America (BAC -1.8%), Morgan Stanley (MS -1.2%), Citigroup (C -1.9%), M&T (MTB -1.1%), Flagstar (FBC -1.7%), Fifth Third (FITB -1.6%), PNC Financial (PNC -1.4%), Prudential (PRU -1.1%), Lincoln National (LNC -1.9%), Schwab (SCHW -2.1%), State Street (STT -1.8%)
- No longer part of the financial sector as far as the GICS classification, REITs are enjoying the respite in rates. IYR +1.6%, VNQ +1.6%
- Realty Income (O +4.1%), Vereit (VER +3%), Omega Healthcare (OHI +3.2%), Welltower (HCN +3.5%), HCP (HCP +2.7%), Universal Health (UHT +4.4%), W.P. Carey (WPC +2%), Lexington Realty (LXP +2.5%), Essex Property (ESS +1.2%), Aimco (AIV +1.5%), General Growth (GGP +2.6%), Brixmor (BRX +1.6%), Federal Realty (FRT +1.8%), Kimco (KIM +1.2%), Public Storage (PSA +1.4%), Life Storage (LSI +1.4%), Boston Properties (BXP +1.2%), Stag Industrial (STAG +2.4%).
Wed, Nov. 30, 11:45 AM
- While the pick of ex-Goldmanite and Hollywood player Steven Mnuchin for Treasury Secretary can hardly be called "draining the swamp," Pantheon's Ian Shepherdson says it should make Wall Street happy.
- In his first public comments after being selected, Mnuchin promised to "kill" swaths of Dodd-Frank.
- Also making Wall Street (and other bankers/insurers/brokers) happy today is another big move higher in interest rates, with the 10-year Treasury yield up 10 basis points to 2.394%.
- The S&P 500 is just marginally higher, but the KBE is ahead 1.9%, and the KRE 2%. XLF +1.35%
- Bank of America (BAC +3.4%), Citigroup (C +1.9%), JPMorgan (JPM +1.5%), Wells Fargo (WFC +1.8%), Morgan Stanley (MS +2.1%), Goldman Sachs (GS +3.9%), U.S. Bancorp (USB +1%), PNC Financial (PNC +1.4%), KeyCorp (KEY +2.2%), Fifth Third (FITB +2.5%), Regions Financial (RF +2.9%), BB&T (BBT +2.4%), SunTrust (STI +2%)
- MetLife (MET +2%), AIG (AIG +0.8%), Lincoln National (LNC +1.7%), Prudential (PRU +1.1%), Hartford (HIG +1.3%)
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
Thu, Nov. 10, 12:32 PM
- The regulatory regime will be "more constructive" under a President Trump, says management at the company's investor day.
- Webcast and presentation slides
- Of the post-election surge in interest rates, CIO Steve Goulart says he's a fan, and that the move is "favorable to us."
- Ahead of today's meeting, the company announced a $3B buyback plan.
- MET's 4.7% gain in this session puts the two-day advance at about 12% - the best two-day move for the stock since 2009.
- Other insurers: Prudential (PRU +3.1%), Manulife (MFC +7.2%), Sun Life (SLF +8.3%), Lincoln Financial (LNC +2%), Primerica (PRI +10.6%), Voya (VOYA +6.2%), AIG (AIG +3.2%)
Wed, Nov. 9, 11:26 AM
- The 10-year Treasury yield is up a whopping 10 basis points to 1.96%, surely a boon to yield-starved insurers. But for the larger players like MetLife (MET +5.2%), Prudential (PRU +4.2%), and AIG (AIG +1.6%), they may be able to look forward to end of their SIFI designations, and the boosted regulation and capital requirements that go with it (MetLife, of course, has already won a court case challenging its SIFI designation).
- Trump is likely to nominate two or three new Fed governors, says Capital Alpha Partners' Ian Katz, who doesn't expect Janet Yellen to seek to stay on when her term as chairman expires in 2018. He doesn't expect this to happen right away, but look for a Trump Treasury to de-designate AIG and Prudential (and presumably drop the MetLife appeal).
- Others enjoying the higher rates: Lincoln National (LNC +6.6%), Voya Financial (VOYA +5.2%), Primerica (PRI +10.4%)
Tue, Nov. 8, 8:19 AM
Thu, Nov. 3, 10:26 AM
- MetLife (MET +2.5%), Prudential (PRU +3.5%), Lincoln National (LNC +6.7%), and AIG (AIG -4.5%) all reported after the bell last night, and the first three cruised past estimates, but AIG, not so much. AIG, of course, is more exposed to the P&C side of the industry, and results there are still in need of improvement.
- Capital returns: AIG slowed repurchases during Q3, but boosted its buyback by $3B; Lincoln National lifted its dividend 16%, and bought back $200M of stock in Q3, with share float down 8% Y/Y; Prudential returned nearly $1B in dividends and buybacks.
Wed, Nov. 2, 4:23 PM
Tue, Nov. 1, 5:35 PM
- ACLS, ADSW, AEL, AIG, ALIM, ALL, ALNY, ALSK, AMRS, ARC, AREX, AVD, AWK, AWR, BBRG, BCOV, BEAT, BGC, BKCC, BKFS, BKH, BREW, BRKR, CABO, CAR, CBPO, CCRN, CDI, CF, CGI, CHEF, CLR, CODI, COHR, CPE, CSGS, CSLT, CWEI, CXW, DMRC, DPLO, DPM, DVA, ENSG, EPAY, EQC, EQIX, ERII, ESRT, EVTC, EXAR, EYES, FB, FIT, FMC, FMI, FNF, FOE, FRSH, FRT, FSLR, FTK, G, GDDY, GPOR, HABT, HASI, HBM, HIVE, HOLX, HOS, HR, HSTM, HUBS, IAC, IL, INN, INOV, IO, IOSP, IRG, ITRI, IXYS, JONE, JRVR, KEYW, KGC, KTOS, LGCY, LHCG, LNC, LOPE, LPI, LPLA, LQ, LSI, MANT, MASI, MCHX, MDU, MET, MGNX, MHLD, MRO, MTGE, MUSA, MWA, NBIX, NGHC, NLY, NPO, NSTG, NVDQ, OESX, OME, OSUR, OTTR, PAA, PACB, PAGP, PE, PEGA, PEI, PEIX, PGRE, PRA, PRAH, PRU, PTCT, QCOM, QGEN, QTWO, QUIK, REGI, REXR, RGLD, RICE, RIG, RLJ, RMP, ROG, RRD, RRGB, RRTS, RUBI, RXN, RYN, SBRA, SBY, SF, SRC, SWM, TCAP, TEP, TPC, TROX, TTEC, TTWO, TVIA, TWO, VNDA, VVC, WFM, WMC, WMGI, WPG, WPX, WSTL, WTI, WTS, WYNN, XEC, XOXO, XPO, ZNGA
Tue, Oct. 18, 8:02 AM
Fri, Oct. 7, 7:44 AM
- Alongside the Top Pick designation for VOYA is a $39 price target, suggesting 30% upside.
- Started at Underperform is Aflac (NYSE:AFL), with analyst John Nadel noting recent outperformance, global low rates as pressuring investment income, and the growing spread between U.S. and Japanese rates as boosting hedging costs. The $75 price target compares to yesterday's close of $72.07.
- Principal Financial Group (NYSE:PFG) also rates an Underperform, with Nadel noting more intense competition, exposure to FX and emerging markets volatility, and lower rates as maybe muting EPS growth and flatten margins.
- MetLife (NYSE:MET), Prudential (NYSE:PRU), Lincoln National (NYSE:LNC), Reinsurance Group of America (NYSE:RGA), AIG, and Unum Group (NYSE:UNM),
Tue, Oct. 4, 2:19 PM
- A Bloomberg report says the ECB is likely to gradually wind down bond purchases ahead of the scheduled March 2017 end of its QE program. The central bank is currently buying €80B per month of government and corporate paper, and may begin to slow that amount by €10B per month, according to the story.
- Yields are higher in Europe and the U.S., with the 10-year U.S. Treasury up five basis points to 1.675% and the German 10-year Bund yield is up four bps to -0.048%. TLT -1.1%, TBT +2.2%
- Though the Dow and S&P 500 are each lower by 0.5%, the yield-starved XLF is up 0.6%, with Bank of America (BAC +2.1%), Citigroup (C +1.9%), and JPMorgan (JPM +0.4%) leading the way. Shrouded in scandal, Wells Fargo (WFC -0.2%) continues to underperform.
- Other names: Regions Financial (RF +1.5%), KeyCorp (KEY +2.1%), BB&T (BBT +1.4%), Schwab (SCHW +1.5%), MetLife (MET +1.1%), Prudential (PRU +1.3%).
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, DPST, FAZZ, FNCF
Mon, Sep. 26, 3:13 PM
- In what doesn't sound like great news for the already-yield-starved insurance industry, cash balances are "ticking upward," says Zach Buchwald, head of BlackRock's insurance asset-management operation.
- Buchwald: “In today’s environment, where every basis point is so precious, within your core fixed income, we want to be investing wisely and generating the best risk-adjusted returns we can, and a large cash balance doesn’t help.”
- Nearly half of 315 insurers surveyed globally expect to boost cash holdings in coming months - that's up from 36% a year ago, says BlackRock. At issue are poor performance in alternative investments and credit concerns following a sizable narrowing in spreads this year.
- Struggling insurers are past the point of expecting rising interest rates, says Buchwald. So - other than cash - where else will the money go? Allocations to private-equity appear to be set to rise, and outfits like AIG are turning to direct lending. At MetLife (NYSE:MET), commercial real estate loans hit a record last year.
- Other interested parties: PRU, LNC, MFC, SLF, PRI, VOYA
Fri, Sep. 23, 8:29 AM
- Analysts Michael Kovac and Rosalie Frazier cite four key factors:
- Upward revision in EPS estimates after revising downward at this time last year.
- Reduced overhead costs, and boosted capital returns - $1B repurchase program and 20% dividend hike.
- A differentiated franchise - the two note PRU's high-quality asset management, and the Japan operation contributing 45% of net income.
- Higher interest rates should boost the stock's multiple. Prudential, they say, is among the most liquid insurers and trades at just half the S&P's multiple.
- They add PRU to the Conviction List with $93 price target.
- Shares +1.7% to $81.50 premarket.
Tue, Aug. 9, 5:24 PM
Thu, Aug. 4, 9:49 AM
- There's a lot of moving parts, but the bottom line for life insurers in this low interest rate environment is they just can't earn enough money to meet their obligations.
- Following a rough Q2 report, MetLife (MET -9.4%) plans to cut expenses by 11%, or $1B annually by 2019. This will include job cuts, though CEO Steve Kandarian declined to specify a number. “In light of the significant headwinds our industry is facing, MetLife must do even more to avoid simply running in place,” he tells conference call listeners.
- Also missing estimates last night were Prudential Financial (PRU -3.7%) and Lincoln National (LNC -2.9%).
Wed, Aug. 3, 4:36 PM