A study of analyst recommendations at the major brokerages shows that Primerica Inc (PRI - Get Report) is the #88 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. Primerica Inc is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future. Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity. According to the ETF Finder at ETF Channel, PRI makes up 2.26% of the SPDR S&P Insurance ETF (KIE) which is trading relatively unchanged on the day Thursday. PRI operates in the Life & Health Insurance sector, among companies like UnitedHealth Group Inc (UNH) which is up about 0.3% today, and MetLife Inc (MET) trading up by about 0.8%. Below is a three month price history chart comparing the stock performance of PRI, versus UNH and MET. PRI is currently trading off about 0.2% midday Thursday.
More from Stocks
How Jerome Powell's Jackson Hole Speech Could Impact Stocks and Bonds
The market wants its rate cuts. For Friday, it wants Powell not to indicate anything to the contrary. Here's what could happen if the Fed Chair fails to deliver.
Market Prepares for a Big Reaction to Jerome Powell
The best strategy is to stay vigilant and be ready to react.
Dow Futures, Salesforce, Dick's, Ford and Amazon - 5 Things You Must Know
U.S. stock futures turn slightly higher Thursday; Dick's Sporting Goods and Salesforce.com report earnings; Donald Trump slams Ford for backing an agreement with California to lower emission standards.
Wayfair Gets Decorated With Analyst Upgrade to Buy
Online furniture and home-accessories retailer Wayfair receives an upgrade from analysts at Stifel Nicolaus, who see the company's stock as undervalued at current levels following a post-earnings downturn.