Employers (NYSE:EIG) Shares Gap Down on Disappointing Earnings

Shares of Employers Holdings, Inc. (NYSE:EIG) gapped down before the market opened 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 traded.

The financial services provider reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.69 by ($0.02). The business had revenue of $223.10 million for the quarter, compared to analysts’ expectations of $217.46 million. Employers had a net margin of 13.88% and a return on equity of 10.54%. Employers’s quarterly revenue was up 8.0% on a year-over-year basis. During the same period last year, the firm posted $0.60 earnings per share.

Employers Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 13th. Stockholders of record on Wednesday, February 28th were issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.65%. The ex-dividend date was Tuesday, February 27th. Employers’s payout ratio is currently 25.06%.

Analyst Ratings Changes

EIG has been the topic of a number of research analyst reports. Truist Financial upped their price target on Employers from $53.00 to $55.00 and gave the company a “buy” rating in a report on Tuesday, February 20th. Janney Montgomery Scott lowered Employers from a “buy” rating to a “neutral” rating in a research note on Tuesday, February 27th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in EIG. Allspring Global Investments Holdings LLC grew its stake in Employers by 55.0% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 93,757 shares of the financial services provider’s stock worth $3,746,000 after buying an additional 33,282 shares during the last quarter. LSV Asset Management lifted its position in Employers by 18.7% during the 3rd quarter. LSV Asset Management now owns 207,700 shares of the financial services provider’s stock worth $8,298,000 after acquiring an additional 32,700 shares during the period. Exchange Traded Concepts LLC lifted its position in Employers by 2.0% during the 4th quarter. Exchange Traded Concepts LLC now owns 44,708 shares of the financial services provider’s stock worth $1,761,000 after acquiring an additional 876 shares during the period. Barclays PLC lifted its position in Employers by 45.2% during the 3rd quarter. Barclays PLC now owns 21,880 shares of the financial services provider’s stock worth $875,000 after acquiring an additional 6,808 shares during the period. Finally, AQR Capital Management LLC lifted its position in Employers by 247.6% during the 3rd quarter. AQR Capital Management LLC now owns 193,350 shares of the financial services provider’s stock worth $7,724,000 after acquiring an additional 137,725 shares during the period. 80.49% of the stock is currently owned by hedge funds and other institutional investors.

Employers Trading Down 2.7 %

The stock has a 50-day simple moving average of $44.52 and a 200 day simple moving average of $41.24. The company has a market cap of $1.07 billion, a price-to-earnings ratio of 9.47 and a beta of 0.24.

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.