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

Unum Group (NYSE:UNM)’s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $79.24, but opened at $74.00. Unum Group shares last traded at $75.56, with a volume of 218,748 shares traded.

The financial services provider reported $2.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.19 by ($0.15). The company had revenue of $3.09 billion during the quarter, compared to the consensus estimate of $3.34 billion. Unum Group had a net margin of 13.81% and a return on equity of 14.91%. The company’s quarterly revenue was down 3.4% on a year-over-year basis. During the same quarter last year, the firm posted $2.12 earnings per share.

Unum Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 16th. Stockholders of record on Friday, April 25th will be paid a $0.42 dividend. The ex-dividend date is Friday, April 25th. This represents a $1.68 annualized dividend and a dividend yield of 2.17%. Unum Group’s payout ratio is 17.74%.

Unum Group announced that its Board of Directors has authorized a stock repurchase program on Tuesday, February 18th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 7.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

UNM has been the topic of a number of recent analyst reports. Wells Fargo & Company lifted their target price on Unum Group from $95.00 to $97.00 and gave the company an “overweight” rating in a research report on Thursday. Morgan Stanley lifted their target price on Unum Group from $80.00 to $84.00 and gave the company an “equal weight” rating in a research report on Friday, February 28th. Piper Sandler boosted their price target on Unum Group from $87.00 to $92.00 and gave the stock an “overweight” rating in a report on Wednesday, April 2nd. Raymond James upgraded Unum Group from a “market perform” rating to a “strong-buy” rating and set a $108.00 price target on the stock in a report on Wednesday, March 5th. Finally, JPMorgan Chase & Co. boosted their price target on Unum Group from $81.00 to $87.00 and gave the stock a “neutral” rating in a report on Wednesday, April 2nd. Five investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Unum Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $88.50.

Insider Transactions at Unum Group

In other news, CEO Richard P. Mckenney sold 50,000 shares of the company’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $81.99, for a total transaction of $4,099,500.00. Following the transaction, the chief executive officer now directly owns 980,637 shares of the company’s stock, valued at $80,402,427.63. This represents a 4.85 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Lisa G. Iglesias sold 7,000 shares of the company’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $82.75, for a total value of $579,250.00. Following the transaction, the executive vice president now directly owns 31,284 shares in the company, valued at $2,588,751. The trade was a 18.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.93% 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. Fifth Third Bancorp raised its position in shares of Unum Group by 4.0% in the first quarter. Fifth Third Bancorp now owns 3,558 shares of the financial services provider’s stock valued at $290,000 after purchasing an additional 136 shares during the period. Bessemer Group Inc. lifted its stake in shares of Unum Group by 2.2% during the 4th quarter. Bessemer Group Inc. now owns 6,536 shares of the financial services provider’s stock valued at $478,000 after buying an additional 143 shares in the last quarter. Kovitz Investment Group Partners LLC lifted its stake in shares of Unum Group by 0.8% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 18,211 shares of the financial services provider’s stock valued at $1,330,000 after buying an additional 147 shares in the last quarter. Versant Capital Management Inc lifted its stake in shares of Unum Group by 26.4% during the 4th quarter. Versant Capital Management Inc now owns 766 shares of the financial services provider’s stock valued at $56,000 after buying an additional 160 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its stake in shares of Unum Group by 28.8% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 800 shares of the financial services provider’s stock valued at $58,000 after buying an additional 179 shares in the last quarter. Institutional investors own 86.57% of the company’s stock.

Unum Group Stock Down 0.2 %

The company has a market capitalization of $13.66 billion, a PE ratio of 8.18, a PEG ratio of 1.14 and a beta of 0.46. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.28 and a current ratio of 0.29. The stock’s 50 day moving average is $78.35 and its 200 day moving average is $74.39.

Unum Group Company Profile

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products.