Aflac Incorporated (NYSE:AFL) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts broadly rate Aflac “Hold”: Of 14 brokerages, seven recommend holding the stock, three rate it a sell, two recommend buying and two issue strong-buy ratings. The average 12-month price target is approximately $116.62.
• Aflac’s latest results were mixed, with quarterly revenue of $4.22 billion beating expectations, while EPS of $1.75 narrowly missed consensus; revenue also declined 1% year over year.
• The company declared a quarterly dividend of $0.61 per share, equivalent to $2.44 annually and a roughly 2.1% yield, with a payout ratio of about 26%.

Aflac Incorporated (NYSE:AFL - Get Free Report) has been assigned a consensus recommendation of "Hold" from the fourteen brokerages that are currently covering the stock, Marketbeat reports. Three research analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation, two have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $116.6154.

AFL has been the subject of several recent research reports. Wall Street Zen cut Aflac from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. TD Cowen reiterated a "hold" rating and set a $110.00 price objective (up from $101.00) on shares of Aflac in a research report on Wednesday, July 22nd. Morgan Stanley boosted their price objective on Aflac from $120.00 to $125.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 21st. UBS Group restated a "neutral" rating and issued a $124.00 target price (up from $114.00) on shares of Aflac in a report on Wednesday, July 8th. Finally, Weiss Ratings raised Aflac from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday.

Aflac Stock Up 0.0%

Shares of NYSE AFL opened at $116.12 on Monday. Aflac has a 12-month low of $104.66 and a 12-month high of $130.22. The stock has a market cap of $58.22 billion, a PE ratio of 12.45, a P/E/G ratio of 1.87 and a beta of 0.60. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.29. The company has a 50-day moving average of $121.55 and a 200 day moving average of $116.15.

Aflac (NYSE:AFL - Get Free Report) last released its earnings results on Thursday, August 6th. The financial services provider reported $1.75 earnings per share for the quarter, missing analysts' consensus estimates of $1.76 by ($0.01). The business had revenue of $4.22 billion during the quarter, compared to analysts' expectations of $4.11 billion. Aflac had a return on equity of 13.27% and a net margin of 26.91%.The company's revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period last year, the business earned $1.78 earnings per share. As a group, sell-side analysts predict that Aflac will post 7.04 EPS for the current fiscal year.

Aflac Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Wednesday, August 19th will be issued a $0.61 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.1%. Aflac's dividend payout ratio is currently 26.15%.

Key Headlines Impacting Aflac

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac’s quarterly dividend is $0.61 per share, or $2.44 annualized, providing a yield of roughly 2.1%. The company has a long record of dividend growth and a relatively low payout ratio of about 26%, supporting its appeal as a defensive income stock.
• Neutral Sentiment: Recent earnings were mixed: quarterly revenue of $4.22 billion exceeded analyst expectations of $4.11 billion, but earnings per share of $1.75 narrowly missed the $1.76 consensus. Revenue declined 1% year over year and EPS fell from $1.78 in the prior-year quarter, limiting fundamental momentum.
• Neutral Sentiment: Wall Street’s overall view remains cautious, with a consensus rating of “Hold” and an average price target near $116.62. Some analysts remain constructive, including Piper Sandler with a $138 target, while others maintain neutral or underweight ratings.
• Negative Sentiment: Wolfe Research initiated coverage with an “underperform” rating and a $103 price target, implying meaningful downside from recent trading levels. The call adds to existing concerns from Barclays and JPMorgan, which also have cautious ratings or targets. Wolfe Research Starts Aflac at Underperform
• Negative Sentiment: Japan Post Holdings, Aflac’s major shareholder, sold another 12,700 shares on August 19 for approximately $1.49 million, following sales of 14,200 shares on August 18 and 13,900 shares on August 17. The transactions were conducted under a pre-arranged Rule 10b5-1 plan and represent only a small reduction in its stake, but the repeated selling may weigh on investor sentiment. Aflac SEC Insider Filing

Insider Activity

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 12,700 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $117.05, for a total transaction of $1,486,535.00. Following the completion of the sale, the insider directly owned 50,817,790 shares in the company, valued at approximately $5,948,222,319.50. This trade represents a 0.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joseph L. Moskowitz sold 600 shares of Aflac stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $124.10, for a total transaction of $74,460.00. Following the transaction, the director directly owned 32,710 shares in the company, valued at $4,059,311. This trade represents a 1.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 497,625 shares of company stock valued at $58,356,483. 0.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AFL. Whipplewood Advisors LLC purchased a new position in Aflac in the first quarter worth approximately $25,000. Groupe la Francaise purchased a new stake in Aflac in the first quarter valued at $25,000. Quarry LP purchased a new stake in Aflac in the fourth quarter valued at $25,000. Archer Investment Corp purchased a new stake in Aflac in the second quarter valued at $26,000. Finally, Edmond DE Rothschild Holding S.A. acquired a new position in shares of Aflac in the 2nd quarter valued at $27,000. 67.44% of the stock is currently owned by institutional investors and hedge funds.

Aflac Company Profile

Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac's product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.

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