Investment Analysts’ Weekly Ratings Updates for Torchmark (TMK)

Torchmark (NYSE: TMK) recently received a number of ratings updates from brokerages and research firms:

  • 1/5/2019 – Torchmark was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $86.00 price target on the stock. According to Zacks, “Shares of Torchmark have outperformed the industry in a year’s time. The company’s niche market focus, steady capital deployment and strong operating fundamentals should drive long-term growth. The insurer estimates life and health sales growth in distribution channels. Also, a strong capital position and capital management are its key positives. Torchmark expects net operating income between $6.08 and $6.14 per share (up from the earlier guided range of $6.02-$6.12) in 2018 and $6.45-$6.75 in 2019. However, higher administrative expenses (projected to be 6.5% of premium in 2018), pension costs and investments in IT systems are likely to be a drag on Torchmark’s earnings in the near term.”
  • 1/2/2019 – Torchmark was upgraded by analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating.
  • 1/2/2019 – Torchmark was upgraded by analysts at ValuEngine from a “sell” rating to a “hold” rating.
  • 12/31/2018 – Torchmark was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Shares of Torchmark have outperformed the industry in a year’s time. The company’s niche market focus, steady capital deployment and strong operating fundamentals should drive long-term growth. The insurer estimates life and health sales growth in distribution channels. Also, a strong capital position and capital management are its key positives. Torchmark expects net operating income between $6.08 and $6.14 per share (up from the earlier guided range of $6.02-$6.12) in 2018 and $6.45-$6.75 in 2019. However, higher administrative expenses (projected to be 6.5% of premium in 2018), pension costs and investments in IT systems are likely to be a drag on Torchmark’s earnings in the near term.”
  • 12/12/2018 – Torchmark was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.

Torchmark stock opened at $80.08 on Monday. Torchmark Co. has a 12 month low of $69.68 and a 12 month high of $93.60. The company has a current ratio of 0.09, a quick ratio of 0.09 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $8.89 billion, a P/E ratio of 16.61, a PEG ratio of 0.88 and a beta of 0.96.

Torchmark (NYSE:TMK) last posted its quarterly earnings data on Wednesday, October 24th. The insurance provider reported $1.59 EPS for the quarter, beating the consensus estimate of $1.53 by $0.06. Torchmark had a return on equity of 11.70% and a net margin of 36.42%. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.07 billion. On average, analysts predict that Torchmark Co. will post 6.14 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, February 1st. Stockholders of record on Friday, January 4th will be issued a $0.16 dividend. The ex-dividend date of this dividend is Thursday, January 3rd. This represents a $0.64 annualized dividend and a dividend yield of 0.80%. Torchmark’s payout ratio is currently 13.28%.

In related news, CFO Frank M. Svoboda sold 12,375 shares of the company’s stock in a transaction on Thursday, November 8th. The shares were sold at an average price of $87.70, for a total value of $1,085,287.50. Following the completion of the transaction, the chief financial officer now directly owns 105,828 shares in the company, valued at $9,281,115.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.68% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in TMK. Tower Research Capital LLC TRC boosted its holdings in Torchmark by 17.0% in the second quarter. Tower Research Capital LLC TRC now owns 4,587 shares of the insurance provider’s stock worth $374,000 after purchasing an additional 667 shares during the last quarter. Pacer Advisors Inc. increased its holdings in shares of Torchmark by 14.3% in the 3rd quarter. Pacer Advisors Inc. now owns 5,697 shares of the insurance provider’s stock worth $494,000 after buying an additional 714 shares during the last quarter. Global X Management Co LLC increased its holdings in shares of Torchmark by 17.1% in the 2nd quarter. Global X Management Co LLC now owns 5,046 shares of the insurance provider’s stock worth $411,000 after buying an additional 736 shares during the last quarter. Norinchukin Bank The increased its holdings in shares of Torchmark by 11.5% in the 3rd quarter. Norinchukin Bank The now owns 7,334 shares of the insurance provider’s stock worth $636,000 after buying an additional 754 shares during the last quarter. Finally, State of Alaska Department of Revenue increased its holdings in shares of Torchmark by 2.2% in the 3rd quarter. State of Alaska Department of Revenue now owns 37,751 shares of the insurance provider’s stock worth $3,271,000 after buying an additional 820 shares during the last quarter. 74.31% of the stock is owned by institutional investors and hedge funds.

Torchmark Corporation, through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. It operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. The Life Insurance segment offers traditional and interest-sensitive whole life and term life insurance, and other life insurance.

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