Employers (NYSE:EIG) Shares Gap Down Following Weak Earnings

Employers Holdings, Inc. (NYSE:EIG) shares gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $43.51, but opened at $39.46. Employers shares last traded at $42.37, with a volume of 37,368 shares.

The financial services provider reported $0.67 EPS for the quarter, missing analysts’ consensus estimates of $0.69 by ($0.02). The business had revenue of $223.10 million during the quarter, compared to the consensus estimate of $217.46 million. Employers had a return on equity of 10.54% and a net margin of 13.88%. The business’s revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.60 EPS.

Employers Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 13th. Investors of record on Wednesday, February 28th were issued a dividend of $0.28 per share. The ex-dividend date of this dividend was Tuesday, February 27th. This represents a $1.12 dividend on an annualized basis and a yield of 2.55%. Employers’s payout ratio is 25.06%.

Analyst Ratings Changes

Several analysts have issued reports on EIG shares. Truist Financial upped their price objective on Employers from $53.00 to $55.00 and gave the company a “buy” rating in a research note on Tuesday, February 20th. Janney Montgomery Scott cut Employers from a “buy” rating to a “neutral” rating in a research note on Tuesday, February 27th.

Institutional Trading of Employers

Several institutional investors and hedge funds have recently modified their holdings of EIG. PNC Financial Services Group Inc. lifted its stake in Employers by 13.6% in the 3rd quarter. PNC Financial Services Group Inc. now owns 2,516 shares of the financial services provider’s stock valued at $101,000 after purchasing an additional 302 shares during the last quarter. SG Americas Securities LLC bought a new position in Employers during the 3rd quarter worth $198,000. Aigen Investment Management LP acquired a new position in shares of Employers in the third quarter worth approximately $226,000. Los Angeles Capital Management LLC acquired a new position in shares of Employers in the 3rd quarter worth approximately $298,000. Finally, Meritage Portfolio Management acquired a new position in Employers in the third quarter valued at $314,000. 80.49% of the stock is currently owned by institutional investors.

Employers Stock Performance

The company has a market capitalization of $1.11 billion, a price-to-earnings ratio of 9.84 and a beta of 0.24. The business has a 50 day moving average price of $44.50 and a 200-day moving average price of $41.26.

About Employers

Employers Holdings, Inc, through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers' compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands.