Employers (NYSE:EIG) Shares Gap Down on Disappointing Earnings

Employers Holdings Inc (NYSE:EIGGet Free Report) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $42.77, but opened at $40.01. Employers shares last traded at $39.6980, with a volume of 14,817 shares.

The financial services provider reported $0.53 EPS for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.02). Employers had a net margin of 0.95% and a return on equity of 1.10%. The business had revenue of $207.60 million for the quarter, compared to the consensus estimate of $213.04 million. During the same period in the previous year, the company earned $0.87 EPS. The company’s revenue for the quarter was up 2.5% on a year-over-year basis.

Employers Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Wednesday, May 13th will be issued a dividend of $0.34 per share. This is a positive change from Employers’s previous quarterly dividend of $0.32. The ex-dividend date is Wednesday, May 13th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 3.2%. Employers’s dividend payout ratio (DPR) is currently 387.88%.

Key Stories Impacting Employers

Here are the key news stories impacting Employers this week:

Wall Street Analysts Forecast Growth

EIG has been the topic of a number of research analyst reports. Zacks Research upgraded Employers from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 24th. Wall Street Zen downgraded Employers from a “hold” rating to a “sell” rating in a report on Saturday, March 7th. One investment analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company. According to MarketBeat, Employers presently has a consensus rating of “Buy”.

Get Our Latest Research Report on EIG

Insiders Place Their Bets

In related news, EVP Michael Pedraja purchased 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 24th. The shares were bought at an average price of $39.73 per share, for a total transaction of $79,460.00. Following the purchase, the executive vice president directly owned 19,830 shares of the company’s stock, valued at approximately $787,845.90. This represents a 11.22% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Ann Marie Smith sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $39.29, for a total value of $196,450.00. Following the completion of the sale, the insider owned 8,704 shares in the company, valued at $341,980.16. The trade was a 36.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.40% of the company’s stock.

Institutional Trading of Employers

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Jacobs Levy Equity Management Inc. grew its stake in shares of Employers by 69.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 388,769 shares of the financial services provider’s stock worth $16,783,000 after buying an additional 159,956 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Employers by 126.2% in the 4th quarter. Goldman Sachs Group Inc. now owns 329,479 shares of the financial services provider’s stock worth $14,224,000 after buying an additional 183,828 shares during the last quarter. Qube Research & Technologies Ltd grew its stake in shares of Employers by 93.1% in the 2nd quarter. Qube Research & Technologies Ltd now owns 264,078 shares of the financial services provider’s stock worth $12,459,000 after buying an additional 127,330 shares during the last quarter. Two Sigma Investments LP grew its stake in shares of Employers by 62.4% in the 3rd quarter. Two Sigma Investments LP now owns 181,591 shares of the financial services provider’s stock worth $7,714,000 after buying an additional 69,741 shares during the last quarter. Finally, UBS Group AG grew its stake in shares of Employers by 125.0% in the 3rd quarter. UBS Group AG now owns 181,341 shares of the financial services provider’s stock worth $7,703,000 after buying an additional 100,751 shares during the last quarter. Hedge funds and other institutional investors own 80.49% of the company’s stock.

Employers Price Performance

The company has a current ratio of 1.43, a quick ratio of 0.40 and a debt-to-equity ratio of 0.14. The company has a market cap of $782.44 million, a PE ratio of 127.27 and a beta of 0.49. The firm has a 50 day moving average of $41.10 and a two-hundred day moving average of $41.62.

Employers Company Profile

(Get Free Report)

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.

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