Unum Group (NYSE:UNM) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Unum Group (NYSE:UNM) released 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 net margin of 1.94% and a return on equity of 12.52%. The business had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $2.91 billion. During the same period last year, the firm earned $2.09 earnings per share.

Unum Group Trading Down 1.3%

Unum Group stock traded down $0.98 during mid-day trading on Thursday, hitting $73.81. The company’s stock had a trading volume of 1,699,391 shares, compared to its average volume of 1,594,903. The company has a 50 day moving average of $92.00 and a 200-day moving average of $84.05. The stock has a market cap of $11.68 billion, a PE ratio of 52.38, a P/E/G ratio of 0.88 and a beta of 0.25. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.34 and a current ratio of 0.34. Unum Group has a one year low of $69.02 and a one year high of $96.77.

Unum Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, October 30th will be issued a dividend of $0.5050 per share. The ex-dividend date is Friday, October 30th. This represents a $2.02 dividend on an annualized basis and a yield of 2.7%. Unum Group’s payout ratio is presently 143.26%.

Insiders Place Their Bets

In related news, EVP Lisa G. Iglesias sold 4,000 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $94.44, for a total value of $377,760.00. Following the transaction, the executive vice president owned 25,453 shares of the company’s stock, valued at $2,403,781.32. This trade represents a 13.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Walter Lynn Rice, Jr. sold 2,188 shares of the firm’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $94.31, for a total transaction of $206,350.28. Following the completion of the transaction, the chief accounting officer directly owned 8,154 shares in the company, valued at $769,003.74. This represents a 21.16% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 10,488 shares of company stock worth $988,396 over the last quarter. Company insiders own 1.00% of the company’s stock.

Unum Group declared that its board has initiated a share buyback plan on Wednesday, August 26th that allows the company to repurchase $1 billion in outstanding shares. This buyback authorization allows the financial services provider to buy up to 7% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Trending Headlines about Unum Group

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

• Positive Sentiment: Unum completed a $3.8 billion long-term-care reinsurance agreement with Fortitude Re, a transaction that may reduce exposure to long-term-care risks. Fortitude Re deal announcement
• Positive Sentiment: Adjusted Q3 earnings of $2.20 per share topped analyst estimates, with premium growth and Colonial Life strength helping offset elevated disability claims. Zacks Q3 earnings analysis
• Neutral Sentiment: Barclays lowered its price target from $109 to $101 but maintained an Overweight rating, signaling continued optimism despite a more cautious valuation. Barclays rating information
• Negative Sentiment: Unum reported a $419.7 million GAAP net loss for Q3, versus net income a year earlier. The loss included $853 million in investment losses, primarily impairment charges; reports also flagged revenue below estimates. This overshadows the adjusted EPS beat and helps explain the negative market reaction. Unum Q3 results
• Negative Sentiment: Reports of an SEC comment-letter process and a reserve-methodology change have prompted a shareholder investigation, adding uncertainty about the company’s reporting and reserve practices. Shareholder investigation notice

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Morgan Stanley boosted their price target on Unum Group from $87.00 to $92.00 and gave the stock an “equal weight” rating in a report on Monday, August 24th. Barclays cut their price objective on shares of Unum Group from $109.00 to $101.00 and set an “overweight” rating for the company in a report on Wednesday. Jefferies Financial Group lifted their price objective on shares of Unum Group from $117.00 to $123.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Truist Financial lowered their target price on shares of Unum Group from $96.00 to $85.00 and set a “buy” rating on the stock in a report on Thursday. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Unum Group from $110.00 to $108.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Unum Group has an average rating of “Moderate Buy” and a consensus price target of $97.83.

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.