Principal Financial Cuts MetLife Stake by 3.2% in Q3 Sale
Principal Financial Group reduced its MetLife stake by 3.2% in the third quarter, selling 20,017 shares and retaining 609,132 shares. The remaining stake is valued at $50.17 million and contributes to MetLife’s 94.99% institutional ownership.
1. Institutional Stake Adjustments
During the third quarter, Principal Financial Group Inc. reduced its holding in MetLife by 3.2%, selling 20,017 shares and ending the period with 609,132 shares, representing approximately 0.09% of outstanding stock and valued at about $50.2 million. Other institutional moves included ABN AMRO Bank N.V. increasing its position by 1.7% to 2.25 million shares (roughly 0.34% ownership) and Bessemer Group Inc. adding 9,462 shares to reach nearly 1.98 million shares (0.30% ownership). Collectively, institutional investors control roughly 95% of MetLife’s float, underscoring the company’s prominence in managed portfolios and sensitivity to large‐scale positioning shifts.
2. Analyst Ratings and Price Targets
Research firms have broadly maintained a positive outlook. Morgan Stanley carries an “overweight” rating with a $101 target, Keefe, Bruyette & Woods holds an “outperform” stance at $90, UBS assigns a “buy” rating at $94, and Wells Fargo has raised its objective from $94 to $97 with an “overweight” recommendation. Evercore ISI’s “in‐line” rating at $97 joins two Strong Buy, nine Buy and two Hold assessments, producing a consensus “Buy” rating and average target of $95.27, reflecting confidence in MetLife’s franchise value and earnings power.
3. Fourth Quarter Earnings and Profitability
MetLife reported fourth-quarter adjusted EPS of $2.58, surpassing the consensus estimate by $0.20. Revenue for the quarter grew 27.6% year-over-year to $18.61 billion, driven by strong performance in retirement and group benefits segments. Return on equity stood at a robust 21%, while net margin reached 5.3%. The firm’s debt-to-equity ratio remains moderate at 0.54, supporting a balanced capital structure as analysts project full-year EPS of 9.65.
4. Dividend Policy and Yield
The company declared a quarterly dividend of $0.5675 per share, payable on March 10 to shareholders of record as of February 3. This translates to an annualized payout of $2.27 and a yield of approximately 2.9%. The payout ratio of 42.75% indicates ample room for coverage from operating earnings and aligns with MetLife’s commitment to returning capital while retaining capacity for business investment.