Unum Group (NYSE:UNM) Shares Gap Down After Earnings Miss

Unum Group (NYSE:UNM)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $75.66, but opened at $70.94. Unum Group shares last traded at $73.2340, with a volume of 213,106 shares.

The financial services provider reported $1.92 EPS for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.19). Unum Group had a return on equity of 12.61% and a net margin of 5.65%.The firm had revenue of $3.25 billion for the quarter, compared to analysts’ expectations of $3.29 billion. During the same quarter in the previous year, the firm posted $2.03 earnings per share. The firm’s revenue for the quarter was up .2% compared to the same quarter last year. Unum Group has set its FY 2026 guidance at 8.600-8.900 EPS.

Unum Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 20th. Investors of record on Friday, January 30th will be paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Friday, January 30th. Unum Group’s dividend payout ratio is presently 35.87%.

Unum Group declared that its board has authorized a stock buyback plan on Thursday, December 4th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 8.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Unum Group News Roundup

Here are the key news stories impacting Unum Group this week:

• Positive Sentiment: Premiums grew ~2% year‑over‑year, showing continued revenue traction in its core benefits businesses. UNM Q4 Earnings and Revenues Miss Estimates, Premiums Rise Y/Y
• Positive Sentiment: Some analysts note the stock’s valuation is cheap relative to peers, which could limit downside and attract value buyers if underwriting trends stabilize. Unum: Underwriting Disappoints Again, But Valuation Is Low
• Neutral Sentiment: Management issued FY‑2026 EPS guidance of $8.60–$8.90 (consensus ~$8.91) — a formal outlook that reduces uncertainty but sits just below Street expectations. Unum Group Reports Q4 2025 Results and 2026 Outlook
• Neutral Sentiment: Full Q4 earnings call transcript and presentation are available for investors to assess management commentary and drivers (useful for gauging remediation plans for underwriting). UNM Q4 2025 Earnings Call Transcript Q4 Results Presentation
• Negative Sentiment: Q4 EPS missed materially ($1.92 vs. $2.11 expected) and revenue slightly missed estimates ($3.25B vs. $3.29B), with net income down year‑over‑year — an earnings shortfall that pressured the stock. Unum Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Segment profits fell and underwriting performance disappointed again, driven by higher benefits and expenses — this margin pressure is the main negative catalyst highlighted by analysts. Underwriting Disappoints
• Negative Sentiment: Market reaction: several outlets reported shares tumbled after the earnings miss and weaker guidance, amplifying near‑term selling pressure. Shares Tumble After Weak Guidance, Earnings Miss

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the stock. Wells Fargo & Company raised their price objective on shares of Unum Group from $98.00 to $104.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 13th. Morgan Stanley set a $85.00 price target on Unum Group in a research report on Monday, December 15th. Evercore ISI set a $103.00 price objective on Unum Group in a research report on Friday. Evercore set a $103.00 price objective on Unum Group in a research note on Friday. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Unum Group in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, Unum Group has a consensus rating of “Moderate Buy” and a consensus target price of $97.69.

Insiders Place Their Bets

In other Unum Group news, CAO Walter Lynn Rice, Jr. sold 900 shares of Unum Group stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $73.50, for a total value of $66,150.00. Following the completion of the sale, the chief accounting officer owned 8,940 shares in the company, valued at $657,090. The trade was a 9.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Steven Andrew Zabel sold 7,500 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $76.38, for a total transaction of $572,850.00. Following the transaction, the executive vice president directly owned 113,807 shares of the company’s stock, valued at approximately $8,692,578.66. This represents a 6.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.92% of the stock is owned by insiders.

Institutional Investors Weigh In On Unum Group

Institutional investors have recently bought and sold shares of the stock. Algebris UK Ltd. grew its position in shares of Unum Group by 95.7% during the third quarter. Algebris UK Ltd. now owns 389,463 shares of the financial services provider’s stock worth $30,269,000 after buying an additional 190,454 shares in the last quarter. State of Alaska Department of Revenue boosted its stake in Unum Group by 53.5% during the 3rd quarter. State of Alaska Department of Revenue now owns 69,128 shares of the financial services provider’s stock valued at $5,376,000 after acquiring an additional 24,101 shares during the last quarter. TrueMark Investments LLC acquired a new position in Unum Group during the 2nd quarter worth $5,063,000. Strs Ohio increased its position in shares of Unum Group by 12.2% in the 2nd quarter. Strs Ohio now owns 44,360 shares of the financial services provider’s stock worth $3,583,000 after purchasing an additional 4,814 shares during the last quarter. Finally, Swedbank AB acquired a new stake in shares of Unum Group in the 3rd quarter valued at about $14,644,000. 86.57% of the stock is currently owned by hedge funds and other institutional investors.

Unum Group Stock Down 1.3%

The company has a debt-to-equity ratio of 0.32, a current ratio of 0.36 and a quick ratio of 0.36. The firm’s 50-day moving average price is $77.02 and its 200 day moving average price is $75.45. The firm has a market cap of $12.49 billion, a P/E ratio of 17.57, a PEG ratio of 1.33 and a beta of 0.20.

About Unum Group

Unum Group (NYSE: UNM) is a leading provider of employee benefits in the United States and selected international markets, specializing in disability, life, accident and critical illness insurance. Through both fully insured and self-funded arrangements, the company offers group coverage designed to protect income and mitigate financial hardship for employees and their families. Its portfolio includes short-term and long-term disability plans, group life and accidental death & dismemberment (AD&D) policies, as well as critical illness and hospital indemnity products.

In addition to its core product lines, Unum Group markets voluntary benefits under its Colonial Life brand, allowing employees to purchase supplemental insurance such as accident, cancer, and dental coverage directly through payroll deductions.