Unum Group (NYSE:UNM) Announces Earnings Results

Unum Group (NYSE:UNM) posted its quarterly earnings results on Tuesday. The financial services provider reported $2.20 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.04, FiscalAI reports. Unum Group had a return on equity of 12.60% and a net margin of 5.26%. The firm had revenue of $3.40 billion for the quarter, compared to analyst estimates of $2.91 billion. During the same quarter in the previous year, the firm earned $2.09 EPS.

Unum Group Price Performance

NYSE UNM traded down $17.22 during mid-day trading on Wednesday, hitting $73.81. The stock had a trading volume of 1,888,700 shares, compared to its average volume of 1,551,089. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.34 and a quick ratio of 0.34. The stock has a market capitalization of $11.69 billion, a price-to-earnings ratio of 17.15, a PEG ratio of 0.88 and a beta of 0.25. The firm’s 50 day moving average is $92.29 and its 200 day moving average is $84.07. Unum Group has a twelve month low of $69.02 and a twelve month high of $96.77.

Unum Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, October 30th will be given a $0.5050 dividend. This represents a $2.02 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, October 30th. Unum Group’s dividend payout ratio is currently 47.09%.

Key Headlines Impacting Unum Group

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

• Positive Sentiment: Fortitude Re closed a $3.8 billion long-term-care reinsurance agreement with Unum. The transaction transfers some long-term-care risk and could reduce the company’s exposure to future claims. Fortitude Re announces closing of agreement
• Positive Sentiment: Adjusted Q3 earnings were $2.20 per share, above analyst estimates of roughly $2.16–$2.18 and up from $2.09 a year earlier. Unum Q3 earnings and revenues
• Neutral Sentiment: Some commentary described UNM as undervalued after the reinsurance deal, but these are investor opinions rather than new company guidance. Unum stock looks like a bargain
• Negative Sentiment: Unum reported a $419.7 million GAAP net loss, versus net income a year earlier. The loss included an $853 million pretax investment loss, primarily from impairment charges. Several reports also flagged revenue below analyst expectations, weighing on the market reaction despite the adjusted EPS beat. Unum Group reports third-quarter results

Insiders Place Their Bets

In other Unum Group news, EVP Lisa G. Iglesias sold 4,000 shares of the company’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $94.44, for a total transaction of $377,760.00. Following the transaction, the executive vice president directly owned 25,453 shares in the company, valued at approximately $2,403,781.32. This represents a 13.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Walter Lynn Rice, Jr. sold 2,188 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $94.31, for a total value of $206,350.28. Following the transaction, the chief accounting officer owned 8,154 shares in the company, valued at $769,003.74. This trade represents a 21.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 10,488 shares of company stock worth $988,396 over the last three months. Company insiders own 1.00% of the company’s stock.

Unum Group declared that its Board of Directors has authorized a stock buyback program on Wednesday, August 26th that allows the company to repurchase $1 billion in shares. This buyback authorization allows the financial services provider to buy up to 7% of its stock through open market purchases. Share buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Jefferies Financial Group upped their price objective on Unum Group from $117.00 to $123.00 and gave the company a “buy” rating in a report on Friday, July 10th. Wells Fargo & Company increased their price objective on shares of Unum Group from $100.00 to $102.00 and gave the stock an “overweight” rating in a research report on Monday, October 12th. UBS Group set a $94.00 price target on shares of Unum Group in a research report on Tuesday, July 7th. Barclays dropped their target price on shares of Unum Group from $110.00 to $109.00 and set an “overweight” rating for the company in a research report on Wednesday, October 7th. Finally, Atlantic Securities set a $88.00 price objective on shares of Unum Group in a research report on Wednesday, July 15th. Eight research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Unum Group currently has an average rating of “Moderate Buy” and an average price target of $99.42.

Unum Group Company Profile

Unum Group is an insurance company that provides employee benefits and related protection products through employers, as well as selected individual policies. Its offerings are designed to help people manage the financial impact of illness, injury, death and other unexpected events.

The company’s products include short-term and long-term disability insurance, group and individual life insurance, accidental death and dismemberment coverage, and supplemental health benefits such as accident, critical illness and hospital indemnity insurance.