Unum Group (NYSE:UNM) Reaches New 12-Month High Following Earnings Beat

Unum Group (NYSE:UNM - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $64.89 and last traded at $63.92, with a volume of 375898 shares changing hands. The stock had previously closed at $61.63.

The financial services provider reported $2.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.09 by $0.04. Unum Group had a net margin of 10.40% and a return on equity of 15.55%. The company had revenue of $3.22 billion during the quarter, compared to analysts' expectations of $3.26 billion. During the same quarter in the previous year, the business posted $1.94 earnings per share. The firm's quarterly revenue was up 4.0% compared to the same quarter last year.

Unum Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Friday, October 25th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Friday, October 25th. This represents a $1.68 dividend on an annualized basis and a yield of 2.61%. Unum Group's dividend payout ratio (DPR) is 24.96%.

Unum Group announced that its board has initiated a stock repurchase plan on Tuesday, July 30th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 10% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Wells Fargo & Company boosted their target price on shares of Unum Group from $69.00 to $71.00 and gave the company an "overweight" rating in a research note on Thursday, October 10th. Jefferies Financial Group increased their target price on shares of Unum Group from $63.00 to $64.00 and gave the company a "buy" rating in a research report on Wednesday, July 10th. Piper Sandler reiterated an "overweight" rating and issued a $66.00 target price (up previously from $64.00) on shares of Unum Group in a research report on Friday, September 27th. Citigroup increased their target price on shares of Unum Group from $62.00 to $69.00 and gave the company a "buy" rating in a research report on Tuesday, July 23rd. Finally, UBS Group raised shares of Unum Group to a "hold" rating in a report on Wednesday, October 9th. Five analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $65.64.

Insider Buying and Selling

In related news, CEO Richard P. Mckenney sold 67,795 shares of the firm's stock in a transaction on Thursday, September 5th. The shares were sold at an average price of $54.98, for a total value of $3,727,369.10. Following the transaction, the chief executive officer now directly owns 1,065,868 shares in the company, valued at approximately $58,601,422.64. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. In related news, CEO Richard P. Mckenney sold 67,795 shares of the stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $54.98, for a total transaction of $3,727,369.10. Following the completion of the sale, the chief executive officer now owns 1,065,868 shares in the company, valued at $58,601,422.64. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Timothy Gerald Arnold sold 10,000 shares of the stock in a transaction dated Wednesday, August 14th. The stock was sold at an average price of $54.11, for a total transaction of $541,100.00. Following the sale, the executive vice president now directly owns 64,821 shares in the company, valued at approximately $3,507,464.31. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.93% of the company's stock.

Institutional Trading of Unum Group

Several hedge funds have recently bought and sold shares of the stock. Nordea Investment Management AB raised its holdings in shares of Unum Group by 51.7% in the first quarter. Nordea Investment Management AB now owns 2,961,539 shares of the financial services provider's stock valued at $158,590,000 after purchasing an additional 1,008,776 shares during the last quarter. ProShare Advisors LLC increased its stake in shares of Unum Group by 6,498.1% in the first quarter. ProShare Advisors LLC now owns 636,320 shares of the financial services provider's stock valued at $34,145,000 after buying an additional 626,676 shares during the period. Victory Capital Management Inc. increased its stake in shares of Unum Group by 62.9% in the second quarter. Victory Capital Management Inc. now owns 1,119,870 shares of the financial services provider's stock valued at $57,237,000 after buying an additional 432,240 shares during the period. Sei Investments Co. boosted its holdings in Unum Group by 105.8% in the first quarter. Sei Investments Co. now owns 377,627 shares of the financial services provider's stock valued at $20,263,000 after acquiring an additional 194,125 shares during the last quarter. Finally, M&G Plc bought a new stake in Unum Group in the first quarter valued at approximately $8,988,000. 86.57% of the stock is currently owned by institutional investors and hedge funds.

Unum Group Price Performance

The stock has a market capitalization of $12.21 billion, a P/E ratio of 9.55, a PEG ratio of 0.91 and a beta of 0.77. The business has a fifty day simple moving average of $58.40 and a 200-day simple moving average of $54.37. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.28 and a current ratio of 0.28.

About Unum Group

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.