Employers (NYSE:EIG) Reaches New 1-Year Low After Earnings Miss

Employers Holdings Inc (NYSE:EIG) reached a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $37.81 and last traded at $37.25, with a volume of 29972 shares traded. The stock had previously closed at $40.73.

The financial services provider reported ($1.10) earnings per share for the quarter, missing the consensus estimate of $0.61 by ($1.71). Employers had a net margin of 11.37% and a return on equity of 7.56%. The company had revenue of $239.30 million for the quarter, compared to analysts’ expectations of $216.60 million. During the same quarter in the previous year, the company posted $0.81 EPS. The business’s quarterly revenue was up 6.8% on a year-over-year basis.

Employers Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Investors of record on Wednesday, November 12th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 3.4%. The ex-dividend date is Wednesday, November 12th. Employers’s dividend payout ratio is presently 31.22%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Wall Street Zen lowered Employers from a “hold” rating to a “sell” rating in a report on Monday, August 25th. Zacks Research raised Employers from a “strong sell” rating to a “hold” rating in a research report on Monday, September 29th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Employers in a research report on Wednesday, October 8th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of “Hold”.

Hedge Funds Weigh In On Employers

Several hedge funds have recently bought and sold shares of EIG. Osaic Holdings Inc. grew its position in Employers by 133.5% in the 2nd quarter. Osaic Holdings Inc. now owns 635 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 363 shares during the last quarter. Elevation Point Wealth Partners LLC bought a new position in shares of Employers during the 2nd quarter worth $39,000. Versant Capital Management Inc grew its position in shares of Employers by 230.2% during the 3rd quarter. Versant Capital Management Inc now owns 1,981 shares of the financial services provider’s stock worth $84,000 after buying an additional 1,381 shares in the last quarter. Tower Research Capital LLC TRC grew its position in shares of Employers by 179.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,276 shares of the financial services provider’s stock worth $107,000 after buying an additional 1,462 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in shares of Employers by 16.4% during the 1st quarter. GAMMA Investing LLC now owns 2,147 shares of the financial services provider’s stock worth $109,000 after buying an additional 302 shares in the last quarter. Institutional investors own 80.49% of the company’s stock.

Employers Trading Down 6.3%

The business has a 50-day moving average price of $42.01 and a 200-day moving average price of $44.99. The firm has a market cap of $897.56 million, a P/E ratio of 9.31 and a beta of 0.50.

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.