Zacks Investment Research upgraded shares of Unum Group (NYSE:UNM) from a hold rating to a buy rating in a research report released on Tuesday morning. The firm currently has $39.00 price objective on the stock.
According to Zacks, “Unum’s premiums continue to grow in core businesses with better margins and stable benefits experience. Acquisitions have also been additional support. The buyout of Starmount Life Insurance Company gave the company access to growth opportunities in the dental market, which is in sync with its strategy to focus more on the employee benefits business. Sustained favorable performance drives solid capital generation and strong financial flexibility aiding active capital deployment. Notably, the Zacks Consensus Estimate has witnessed upward estimate revisions, for both 2016 and 2017, over the last 60 days. However, exposure to low interest rate environment remains the key headwind affecting Unum UK results. Also, performances at the Closed Block and Corporate segment have been disappointing over the past few quarters on lower premium stemming from expected policy terminations and maturities.”
Several other analysts also recently weighed in on the company. FBR & Co downgraded Unum Group from a market perform rating to an underperform rating and set a $31.00 target price on the stock. in a research note on Monday, July 11th. Bank of America Corp. downgraded Unum Group from a neutral rating to an underperform rating in a research note on Wednesday, June 29th. Evercore ISI began coverage on Unum Group in a research report on Wednesday, July 6th. They set a sell rating and a $29.00 price target on the stock. Goldman Sachs Group Inc. cut Unum Group from a neutral rating to a sell rating and lowered their price target for the company from $36.00 to $30.00 in a research report on Friday, July 15th. Finally, Wells Fargo & Co. began coverage on Unum Group in a research report on Thursday, September 22nd. They set a market perform rating on the stock. Four equities research analysts have rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $36.15.
Shares of Unum Group (NYSE:UNM) opened at 34.69 on Tuesday. Unum Group has a 12 month low of $23.99 and a 12 month high of $37.26. The stock has a 50 day moving average price of $34.87 and a 200 day moving average price of $33.61. The stock has a market capitalization of $8.14 billion, a P/E ratio of 9.56 and a beta of 1.49.
Unum Group (NYSE:UNM) last announced its earnings results on Wednesday, July 27th. The company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.05. The firm had revenue of $2.76 billion for the quarter, compared to the consensus estimate of $2.75 billion. Unum Group had a return on equity of 10.37% and a net margin of 8.07%. The firm’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.90 EPS. On average, analysts anticipate that Unum Group will post $3.86 EPS for the current fiscal year.
In other news, Director Thomas R. Watjen sold 40,000 shares of Unum Group stock in a transaction on Monday, August 1st. The stock was sold at an average price of $33.24, for a total transaction of $1,329,600.00. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders own 0.62% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of UNM. FDO Partners LLC acquired a new position in shares of Unum Group during the first quarter worth $1,574,000. Prudential Financial Inc. increased its position in shares of Unum Group by 2.2% in the first quarter. Prudential Financial Inc. now owns 766,148 shares of the company’s stock worth $23,690,000 after buying an additional 16,800 shares in the last quarter. TIAA CREF Investment Management LLC increased its position in shares of Unum Group by 29.1% in the first quarter. TIAA CREF Investment Management LLC now owns 550,354 shares of the company’s stock worth $17,017,000 after buying an additional 123,922 shares in the last quarter. Dubuque Bank & Trust Co. increased its position in shares of Unum Group by 56.3% in the first quarter. Dubuque Bank & Trust Co. now owns 126,079 shares of the company’s stock worth $3,898,000 after buying an additional 45,397 shares in the last quarter. Finally, Pacad Investment Ltd. increased its position in shares of Unum Group by 238.7% in the first quarter. Pacad Investment Ltd. now owns 81,686 shares of the company’s stock worth $2,526,000 after buying an additional 57,566 shares in the last quarter. Institutional investors and hedge funds own 93.67% of the company’s stock.
Unum Group Company Profile
Unum Group is a provider of disability insurance products in the United States and the United Kingdom. The Company provides a portfolio of other insurance products, including employer and employee paid group benefits, life insurance and other related services. Its segments are Unum US, Unum UK, Colonial Life, Closed Block and Corporate.
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