Employers (NYSE:EIG) Posts Earnings Results

Employers (NYSE:EIG) released its quarterly earnings results on Wednesday. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.02, FiscalAI reports. The business had revenue of $207.60 million during the quarter, compared to the consensus estimate of $211.97 million. Employers had a return on equity of 2.10% and a net margin of 1.26%.The business’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.87 EPS.

Employers Stock Performance

Shares of EIG stock traded down $0.24 during trading hours on Thursday, reaching $42.53. 155,343 shares of the company traded hands, compared to its average volume of 268,851. Employers has a 12-month low of $35.73 and a 12-month high of $50.37. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.40 and a quick ratio of 0.40. The company has a market cap of $792.33 million, a P/E ratio of 128.88 and a beta of 0.48. The firm has a 50-day moving average price of $41.11 and a 200 day moving average price of $41.62.

Employers Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Wednesday, May 13th will be given a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Wednesday, May 13th. This is an increase from Employers’s previous quarterly dividend of $0.32. Employers’s payout ratio is presently 387.88%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on EIG shares. Zacks Research upgraded Employers from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 24th. Wall Street Zen downgraded Employers from a “hold” rating to a “sell” rating in a research note on Saturday, March 7th. One investment analyst has rated the stock with a Strong Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy”.

Key Headlines Impacting Employers

Here are the key news stories impacting Employers this week:

• Positive Sentiment: Board raised the regular quarterly dividend to $0.34/share (a 6.3% increase) and authorized a new $125 million share repurchase program — both shareholder-friendly actions that support EPS and yield. Press Release
• Neutral Sentiment: Company scheduled a conference call for investors and set the dividend record/ex?dividend dates (record May 13; payable May 27); these provide near-term clarity on capital return timing but are informational rather than catalytic. Earnings Release
• Negative Sentiment: Q1 results showed EPS of $0.53 (well below last year’s $0.87) and revenue of $207.6M, missing analyst revenue expectations — the top?line miss and sharp YoY earnings decline are the primary reasons for weakness in the stock today. Zacks Coverage

Insider Activity

In related news, insider Ann Marie Smith sold 5,000 shares of Employers stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $39.29, for a total transaction of $196,450.00. Following the sale, the insider owned 8,704 shares of the company’s stock, valued at approximately $341,980.16. This trade represents a 36.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Christina M. Ozuna sold 4,500 shares of Employers stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $39.88, for a total value of $179,460.00. Following the sale, the insider directly owned 15,008 shares in the company, valued at $598,519.04. This trade represents a 23.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Employers

Institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. grew its holdings in Employers by 133.5% during the 2nd quarter. Osaic Holdings Inc. now owns 635 shares of the financial services provider’s stock valued at $30,000 after buying an additional 363 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in Employers by 179.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,276 shares of the financial services provider’s stock valued at $107,000 after buying an additional 1,462 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Employers by 26.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,718 shares of the financial services provider’s stock valued at $128,000 after buying an additional 575 shares in the last quarter. Royal Bank of Canada grew its holdings in Employers by 33.3% during the 4th quarter. Royal Bank of Canada now owns 3,186 shares of the financial services provider’s stock valued at $137,000 after buying an additional 796 shares in the last quarter. Finally, Virtus Advisers LLC bought a new stake in shares of Employers in the 3rd quarter valued at approximately $254,000. Hedge funds and other institutional investors own 80.49% of the company’s stock.

Employers Company Profile

Employers Holdings, Inc (NYSE: EIG) is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers’ compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries.

The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors.