Kemper (NYSE:KMPR) Shares Gap Down After Analyst Downgrade

Kemper Corporation (NYSE:KMPR)’s stock price gapped down before the market opened on Wednesday after Raymond James Financial downgraded the stock from an outperform rating to a market perform rating. The stock had previously closed at $50.37, but opened at $49.04. Raymond James Financial now has a $60.00 price target on the stock. Kemper shares last traded at $48.08, with a volume of 167,580 shares traded.

A number of other analysts also recently weighed in on the company. Zacks Research upgraded Kemper from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 7th. Cowen reiterated a “buy” rating on shares of Kemper in a report on Thursday, August 7th. JMP Securities decreased their price target on Kemper from $85.00 to $75.00 and set a “market outperform” rating for the company in a report on Wednesday, August 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Kemper in a report on Wednesday, October 8th. Finally, Wall Street Zen downgraded Kemper from a “strong-buy” rating to a “hold” rating in a report on Saturday, August 9th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $67.25.

Insider Activity

In other news, Director Gerald Laderman bought 3,000 shares of Kemper stock in a transaction dated Thursday, August 7th. The stock was bought at an average cost of $49.37 per share, for a total transaction of $148,110.00. Following the purchase, the director directly owned 24,635 shares in the company, valued at approximately $1,216,229.95. This represents a 13.87% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jason N. Gorevic bought 2,000 shares of Kemper stock in a transaction dated Thursday, August 7th. The stock was purchased at an average price of $49.14 per share, with a total value of $98,280.00. Following the completion of the purchase, the director owned 22,072 shares in the company, valued at $1,084,618.08. This trade represents a 9.96% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 6.20% of the company’s stock.

Hedge Funds Weigh In On Kemper

Large investors have recently added to or reduced their stakes in the business. CX Institutional bought a new position in Kemper in the 1st quarter valued at about $38,000. CENTRAL TRUST Co bought a new position in Kemper in the 1st quarter valued at about $44,000. Bayforest Capital Ltd bought a new position in Kemper in the 1st quarter valued at about $44,000. IFP Advisors Inc lifted its position in Kemper by 651.6% in the 2nd quarter. IFP Advisors Inc now owns 699 shares of the insurance provider’s stock valued at $45,000 after acquiring an additional 606 shares in the last quarter. Finally, Allworth Financial LP lifted its position in Kemper by 68.8% in the 1st quarter. Allworth Financial LP now owns 883 shares of the insurance provider’s stock valued at $59,000 after acquiring an additional 360 shares in the last quarter. Institutional investors own 86.23% of the company’s stock.

Kemper Stock Performance

The firm has a market cap of $2.91 billion, a P/E ratio of 8.74 and a beta of 1.25. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.32. The company’s 50-day moving average is $52.07 and its two-hundred day moving average is $58.33.

Kemper (NYSE:KMPR) last announced its quarterly earnings results on Tuesday, August 5th. The insurance provider reported $1.30 earnings per share for the quarter, missing the consensus estimate of $1.52 by ($0.22). Kemper had a net margin of 7.18% and a return on equity of 14.39%. The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the business posted $1.42 EPS. Kemper’s revenue was up 8.5% compared to the same quarter last year. As a group, equities analysts predict that Kemper Corporation will post 6.03 EPS for the current fiscal year.

Kemper Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Shareholders of record on Monday, August 18th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Monday, August 18th. This represents a $1.28 annualized dividend and a dividend yield of 2.8%. Kemper’s dividend payout ratio (DPR) is currently 24.11%.

Kemper declared that its board has approved a stock buyback program on Tuesday, August 5th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 12.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Kemper Company Profile

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance.