Analysts Set Target Price for Jackson Financial at $109.60

Jackson Financial Inc. (NYSE:JXN) has received a consensus recommendation of “Hold” from seven research firms currently covering the stock, according to MarketBeat. While one analyst has given a sell rating, four suggest holding, one recommends buying, and another has assigned a strong buy rating. The average target price among brokerages for the next year stands at a notable $109.60.

Several analysts have recently published their insights on Jackson Financial. Notably, Morgan Stanley set a target price of $105.00 in a research note dated December 15, 2023. Evercore ISI adjusted their price target from $100.00 to $110.00 while maintaining an “underperform” rating in their report released on October 9, 2023. On the same day, Keefe, Bruyette & Woods raised their target price from $105.00 to $110.00 and issued a “market perform” rating.

Furthermore, Barclays increased their price objective from $125.00 to $128.00 and rated the stock as “overweight” in a report published on November 5, 2023. Additionally, Zacks Research upgraded Jackson Financial from a “hold” rating to a “strong-buy” rating in a research note dated October 13, 2023.

Recent Stock Performance and Financial Health

Shares of Jackson Financial opened at $108.29 on Thursday. The stock has experienced a 52-week low of $64.70 and a high of $109.16. The company maintains a debt-to-equity ratio of 0.47, a quick ratio of 0.27, and a current ratio of 0.27. The market capitalization of Jackson Financial is approximately $7.36 billion, with a price-to-earnings (PE) ratio of 14.98 and a beta of 1.45.

On March 22, 2023, Jackson Financial reported earnings of $6.26 per share for the quarter, with total revenue of $1,162 million. The company achieved a net margin of 1.73% and a return on equity (ROE) of 15.73%. Analysts expect the company to post $20.55 earnings per share for the current fiscal year.

Stock Buyback and Dividend Announcement

In a significant move, Jackson Financial’s board approved a stock repurchase program on September 18, 2023, allowing the company to buy back up to $1 billion worth of shares. This authorization enables the company to repurchase approximately 14.4% of its stock through open market purchases, a strategy often viewed as an indication that the board believes the stock is undervalued.

In addition to the buyback program, Jackson Financial announced a quarterly dividend of $0.80, paid on December 18, 2023. Shareholders of record on December 4 received this dividend, which translates to an annualized dividend of $3.20, representing a dividend yield of 3.0%. Currently, the company’s payout ratio stands at 44.26%.

Founded in Lansing, Michigan, Jackson Financial Inc. specializes in offering retirement products primarily through its subsidiary, Jackson National Life Insurance Company. The company has been publicly traded on the New York Stock Exchange since its initial public offering in May 2022, focusing on fixed, variable, and indexed annuity products designed to help individuals preserve and grow their retirement assets.