Unum Group (NYSE:UNM) Shares Gap Down on Disappointing Earnings

Unum Group (NYSE:UNM) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $80.97, but opened at $71.03. Unum Group shares last traded at $72.92, with a volume of 1,515,734 shares changing hands.

The financial services provider reported $2.07 earnings per share for the quarter, missing the consensus estimate of $2.23 by ($0.16). The company had revenue of $3.36 billion during the quarter, compared to analyst estimates of $3.35 billion. Unum Group had a net margin of 11.77% and a return on equity of 13.52%. The company’s revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.16 EPS.

Unum Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Friday, July 25th will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 2.58%. The ex-dividend date of this dividend is Friday, July 25th. This is a boost from Unum Group’s previous quarterly dividend of $0.42. Unum Group’s dividend payout ratio (DPR) is presently 21.67%.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Keefe, Bruyette & Woods lowered their price objective on shares of Unum Group from $103.00 to $102.00 and set an “outperform” rating for the company in a research report on Wednesday, April 9th. JPMorgan Chase & Co. raised their target price on shares of Unum Group from $87.00 to $96.00 and gave the company a “neutral” rating in a research note on Tuesday, July 8th. UBS Group reduced their target price on shares of Unum Group from $91.00 to $87.00 and set a “neutral” rating on the stock in a research note on Wednesday. Evercore ISI reduced their target price on shares of Unum Group from $100.00 to $96.00 and set an “outperform” rating on the stock in a research note on Wednesday. Finally, Wells Fargo & Company raised their target price on shares of Unum Group from $97.00 to $105.00 and gave the company an “overweight” rating in a research note on Tuesday, July 1st. Five research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $92.54.

Insiders Place Their Bets

In related news, EVP Elizabeth Claire Ahmed sold 10,000 shares of Unum Group stock in a transaction that occurred on Wednesday, May 7th. The shares were sold at an average price of $80.00, for a total transaction of $800,000.00. Following the transaction, the executive vice president owned 51,170 shares of the company’s stock, valued at $4,093,600. This trade represents a 16.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.92% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quintet Private Bank Europe S.A. bought a new position in Unum Group during the 2nd quarter worth approximately $28,000. Vermillion & White Wealth Management Group LLC bought a new position in Unum Group in the first quarter valued at approximately $30,000. Atwood & Palmer Inc. lifted its stake in Unum Group by 100.0% in the second quarter. Atwood & Palmer Inc. now owns 400 shares of the financial services provider’s stock valued at $32,000 after buying an additional 200 shares in the last quarter. N.E.W. Advisory Services LLC bought a new position in Unum Group in the first quarter valued at approximately $35,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Unum Group by 196.9% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 478 shares of the financial services provider’s stock valued at $39,000 after buying an additional 317 shares in the last quarter. Institutional investors own 86.57% of the company’s stock.

Unum Group Stock Performance

The company has a debt-to-equity ratio of 0.31, a current ratio of 0.30 and a quick ratio of 0.30. The stock’s 50 day simple moving average is $80.25 and its two-hundred day simple moving average is $78.55. The stock has a market cap of $12.41 billion, a P/E ratio of 8.52, a price-to-earnings-growth ratio of 1.27 and a beta of 0.41.

Unum Group Company Profile

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products.