Employers (NYSE:EIG) Shares Gap Down – Should You Sell?

Employers Holdings Inc (NYSE:EIG)’s share price gapped down before the market opened on Monday. The stock had previously closed at $49.08, but opened at $44.50. Employers shares last traded at $45.9350, with a volume of 16,613 shares trading hands.

Wall Street Analyst Weigh In

EIG has been the topic of a number of research reports. Truist Financial increased their price objective on Employers from $49.00 to $59.00 and gave the company a “buy” rating in a report on Friday, July 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Employers in a report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $59.00.

Employers Price Performance

The stock has a market cap of $840.99 million, a price-to-earnings ratio of 27.67 and a beta of 0.50. The stock’s 50 day moving average price is $49.48 and its two-hundred day moving average price is $45.89. The company has a quick ratio of 0.39, a current ratio of 1.41 and a debt-to-equity ratio of 0.16.

Employers (NYSE:EIG) last posted its earnings results on Wednesday, October 28th. The financial services provider reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.59 by $0.12. The company had revenue of $189.30 million during the quarter, compared to the consensus estimate of $191.46 million. Employers had a net margin of 3.49% and a return on equity of 5.82%. During the same period in the previous year, the firm posted ($1.10) earnings per share. Equities research analysts forecast that Employers Holdings Inc will post 2.28 EPS for the current fiscal year.

Employers Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 12th will be issued a $0.34 dividend. The ex-dividend date is Thursday, November 12th. This represents a $1.36 dividend on an annualized basis and a yield of 2.9%. Employers’s dividend payout ratio is presently 80.47%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Nykredit A S acquired a new stake in shares of Employers in the second quarter valued at approximately $30,000. Bessemer Group Inc. lifted its position in Employers by 227.1% during the first quarter. Bessemer Group Inc. now owns 651 shares of the financial services provider’s stock worth $27,000 after buying an additional 452 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Employers during the second quarter worth approximately $35,000. Global Retirement Partners LLC acquired a new position in Employers during the second quarter worth $41,000. Finally, Fortitude Family Office LLC acquired a new position in Employers during the third quarter worth $78,000. 80.49% of the stock is currently owned by institutional investors and hedge funds.

About Employers

Employers Holdings, Inc (NYSE:EIG) is an insurance holding company specializing in workers’ compensation coverage for small and midsize businesses. Through its insurance subsidiaries, the company provides policies designed to cover workplace injuries, related medical expenses, rehabilitation, and wage-replacement benefits.

In addition to underwriting workers’ compensation insurance, Employers offers claims management, workplace-safety and loss-control services, risk-management resources, and policyholder support.