Zacks Reiterates Neutral Rating for Unum Group (UNM)
Unum Group (NYSE:UNM)‘s stock had its “neutral” rating reaffirmed by Zacks in a note issued to investors on Friday. They currently have a $36.00 price objective on the stock. Zacks‘s price objective would indicate a potential upside of 6.51% from the company’s current price.
Zacks’ analyst wrote, “Unum’s second-quarter earnings per share surpassed the Zacks Consensus Estimate, making it the ninth consecutive quarter of positive earnings surprise. Better performance by the core business along with a lower share count due to continued share repurchases largely drove the upside. The company expects 2014 operating earnings to grow in the range of 5%-10% from the 2013 level. While conservative pricing and reservation practices are expected to increase Unum’s profit margin. Moreover, the underperforming segments of Unum are approaching a gradual recovery. Additionally, the company remains focused to enhance its shareholders value via dividend increase and share repurchases. However, local currency fluctuations and low interest rate environment are expected to weigh on its performance in the upcoming period. We retain our Neutral recommendation.”
Several other analysts have also recently commented on the stock. Analysts at Credit Suisse raised their price target on shares of Unum Group from $32.00 to $33.00 in a research note on Thursday. Separately, analysts at Deutsche Bank reiterated a “hold” rating on shares of Unum Group in a research note on Monday, July 14th. They now have a $39.00 price target on the stock, up previously from $37.00. Finally, analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Unum Group in a research note on Wednesday, July 9th. They now have a $38.00 price target on the stock, up previously from $37.00. Five investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $37.50.
Unum Group (NYSE:UNM) opened at 33.80 on Friday. Unum Group has a 52-week low of $29.14 and a 52-week high of $36.30. The stock has a 50-day moving average of $34.92 and a 200-day moving average of $34.23. The company has a market cap of $8.612 billion and a P/E ratio of 9.98.
Unum Group (NYSE:UNM) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.87 by $0.04. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.61 billion. During the same quarter in the previous year, the company posted $0.82 earnings per share. The company’s revenue for the quarter was up 1.3% on a year-over-year basis. On average, analysts predict that Unum Group will post $3.57 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, August 15th. Shareholders of record on Monday, July 28th will be given a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a yield of 1.95%. The ex-dividend date of this dividend is Thursday, July 24th. This is a positive change from Unum Group’s previous quarterly dividend of $0.15.
Unum Group is a provider of disability insurance products in the United States and the United Kingdom.
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