Unum Group (NYSE:UNM) Stock Dropped to Strong Sell by Zacks Research

Zacks Research downgraded shares of Unum Group (NYSE:UNM) from a hold rating to a strong sell rating in a research report report published on Wednesday morning,Zacks reports.

A number of other equities analysts have also commented on the stock. Weiss Ratings lowered shares of Unum Group from a “buy (b)” rating to a “hold (c+)” rating in a research report on Tuesday. Atlantic Securities set a $88.00 target price on shares of Unum Group in a research note on Wednesday, July 15th. Wells Fargo & Company lowered their target price on shares of Unum Group from $102.00 to $91.00 and set an “overweight” rating on the stock in a research note on Thursday. Barclays dropped their target price on shares of Unum Group from $109.00 to $101.00 and set an “overweight” rating on the stock in a report on Wednesday, November 4th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Unum Group from $108.00 to $97.00 and set an “outperform” rating for the company in a research report on Thursday, November 5th. Eight equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $94.75.

Unum Group Stock Performance

UNM opened at $79.11 on Wednesday. The company has a market cap of $12.26 billion, a PE ratio of 56.11, a price-to-earnings-growth ratio of 0.88 and a beta of 0.25. The stock has a 50-day moving average of $90.34 and a 200-day moving average of $84.13. Unum Group has a 52-week low of $69.02 and a 52-week high of $96.77. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.34 and a current ratio of 0.34.

Unum Group (NYSE:UNM) last issued its quarterly earnings data on Tuesday, November 3rd. The financial services provider reported $2.20 EPS for the quarter, beating analysts’ consensus estimates of $2.16 by $0.04. Unum Group had a return on equity of 12.57% and a net margin of 1.94%. The business had revenue of $3.40 billion for the quarter, compared to analyst estimates of $2.97 billion. During the same quarter in the prior year, the firm posted $2.09 EPS. As a group, equities research analysts forecast that Unum Group will post 8.37 earnings per share for the current fiscal year.

Unum Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Friday, October 30th will be paid a $0.5050 dividend. The ex-dividend date is Friday, October 30th. This represents a $2.02 annualized dividend and a dividend yield of 2.6%. Unum Group’s dividend payout ratio (DPR) is presently 143.26%.

Unum Group announced that its Board of Directors has initiated a stock repurchase program on Wednesday, August 26th that authorizes the company to buy back $1 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 7% of its shares through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Timothy F. Keaney sold 4,300 shares of the business’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $94.02, for a total transaction of $404,286.00. Following the transaction, the director owned 36,502 shares of the company’s stock, valued at approximately $3,431,918.04. The trade was a 10.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Lynn Jr sold 2,188 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $94.31, for a total transaction of $206,350.28. Following the transaction, the chief accounting officer owned 8,154 shares of the company’s stock, valued at approximately $769,003.74. The trade was a 21.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 10,488 shares of company stock valued at $988,396. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Laurel Wealth Advisors LLC bought a new stake in shares of Unum Group in the third quarter valued at about $29,000. CX Institutional increased its stake in Unum Group by 57.8% during the third quarter. CX Institutional now owns 352 shares of the financial services provider’s stock valued at $31,000 after acquiring an additional 129 shares during the period. City State Bank bought a new position in Unum Group during the third quarter valued at about $32,000. Ancora Advisors LLC acquired a new position in Unum Group in the 2nd quarter valued at approximately $39,000. Finally, Trust Co. of Vermont acquired a new position in Unum Group in the 2nd quarter valued at approximately $47,000. Institutional investors and hedge funds own 86.57% of the company’s stock.

About Unum Group

Unum Group is an insurance holding company that provides employee benefits and related services, primarily to employers and their workers. Its offerings include group disability and life insurance, accident and critical illness coverage, and services that help employers manage employee leave and workplace absence. Through its Unum and Colonial Life businesses, the company also provides voluntary benefits that employees can elect through their workplaces. In the United Kingdom, Unum offers workplace benefits including income protection, life insurance and critical illness coverage.