Aflac (NYSE:AFL) Shares Gap Up on Better-Than-Expected Earnings

Aflac Incorporated (NYSE:AFLGet Rating) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $56.71, but opened at $58.50. Aflac shares last traded at $59.32, with a volume of 25,288 shares trading hands.

The financial services provider reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.27. The business had revenue of $5.40 billion during the quarter, compared to the consensus estimate of $4.79 billion. Aflac had a net margin of 18.90% and a return on equity of 11.96%. The company’s quarterly revenue was down 2.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.59 earnings per share.

Aflac Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 1st. Investors of record on Wednesday, August 24th will be issued a $0.40 dividend. The ex-dividend date is Tuesday, August 23rd. This represents a $1.60 dividend on an annualized basis and a yield of 2.72%. Aflac’s payout ratio is 26.27%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Citigroup assumed coverage on shares of Aflac in a research report on Monday, May 23rd. They set a “neutral” rating and a $60.00 price target on the stock. JPMorgan Chase & Co. boosted their target price on shares of Aflac from $61.00 to $62.00 in a research report on Monday, July 11th. Evercore ISI dropped their price target on shares of Aflac from $60.00 to $59.00 and set an “in-line” rating for the company in a research note on Wednesday, July 6th. Morgan Stanley lowered their target price on shares of Aflac from $69.00 to $66.00 and set an “overweight” rating for the company in a research note on Wednesday, July 6th. Finally, Piper Sandler lowered their price target on shares of Aflac from $68.00 to $66.00 and set an “overweight” rating for the company in a research report on Friday, July 8th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $62.08.

Hedge Funds Weigh In On Aflac

A number of hedge funds have recently added to or reduced their stakes in AFL. Dixon Hughes Goodman Wealth Advisors LLC bought a new stake in Aflac during the fourth quarter worth approximately $26,000. Massmutual Trust Co. FSB ADV boosted its position in shares of Aflac by 120.2% in the first quarter. Massmutual Trust Co. FSB ADV now owns 403 shares of the financial services provider’s stock valued at $26,000 after acquiring an additional 220 shares during the period. Rather & Kittrell Inc. bought a new stake in shares of Aflac in the fourth quarter valued at approximately $27,000. Capital Wealth Alliance LLC bought a new stake in shares of Aflac in the second quarter valued at approximately $27,000. Finally, Sumitomo Mitsui Financial Group Inc. bought a new stake in shares of Aflac in the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds own 66.45% of the company’s stock.

Aflac Stock Up 3.6 %

The company has a market capitalization of $37.84 billion, a P/E ratio of 9.65, a PEG ratio of 2.20 and a beta of 0.93. The firm has a 50-day moving average price of $56.20 and a two-hundred day moving average price of $59.95. The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 0.26.

About Aflac

(Get Rating)

Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers cancer, medical, nursing care income support, GIFT, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products in Japan.

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