Aflac (NYSE:AFL) Hits New 12-Month High - Should You Buy?

Key Points

• Aflac hit a new 52-week high, trading as high as $125.93 and closing near that level, reflecting strong recent momentum in the stock.
• Analyst sentiment is mixed: several firms have raised price targets or upgraded the stock, but the overall consensus remains Hold with an average target price of $114.50, below the current market price.
• The company continues to show solid fundamentals and shareholder returns, with quarterly revenue up 27.9% year over year and a quarterly dividend of $0.61, or $2.44 annualized, for a 2.0% yield.

Aflac Incorporated (NYSE:AFL - Get Free Report) hit a new 52-week high on Monday . The company traded as high as $125.93 and last traded at $124.7750, with a volume of 4031470 shares changing hands. The stock had previously closed at $124.72.

Wall Street Analyst Weigh In

AFL has been the topic of several research analyst reports. Wells Fargo & Company raised their price objective on Aflac from $111.00 to $120.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Evercore upgraded shares of Aflac from a "strong sell" rating to a "strong-buy" rating in a research note on Thursday, April 9th. UBS Group reissued a "neutral" rating and set a $124.00 target price (up from $114.00) on shares of Aflac in a report on Wednesday, July 8th. Piper Sandler restated an "overweight" rating and issued a $130.00 price target (up from $125.00) on shares of Aflac in a research report on Tuesday, May 26th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $108.00 price objective (up from $100.00) on shares of Aflac in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $114.50.

Aflac Trading Down 0.0%

The firm has a market capitalization of $63.46 billion, a P/E ratio of 14.14, a price-to-earnings-growth ratio of 1.92 and a beta of 0.61. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.11 and a current ratio of 0.11. The firm has a 50 day moving average price of $117.82 and a two-hundred day moving average price of $113.74.

Aflac (NYSE:AFL - Get Free Report) last announced its earnings results on Wednesday, April 29th. The financial services provider reported $1.75 EPS for the quarter, missing the consensus estimate of $1.80 by ($0.05). The firm had revenue of $4.24 billion during the quarter, compared to analyst estimates of $4.20 billion. Aflac had a return on equity of 13.88% and a net margin of 25.60%.The business's quarterly revenue was up 27.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.66 earnings per share. On average, equities research analysts expect that Aflac Incorporated will post 7.07 EPS for the current fiscal year.

Aflac Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Wednesday, May 20th were issued a $0.61 dividend. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $2.44 dividend on an annualized basis and a yield of 2.0%. Aflac's dividend payout ratio (DPR) is 27.70%.

Insider Activity at Aflac

In other Aflac news, major shareholder Post Holdings Co. Ltd. Japan sold 63,000 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $118.12, for a total value of $7,441,560.00. Following the completion of the sale, the insider owned 51,169,435 shares in the company, valued at approximately $6,044,133,662.20. This trade represents a 0.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 744,916 shares of company stock worth $87,118,632 over the last three months. 0.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Aflac

A number of hedge funds have recently made changes to their positions in the company. Quarry LP bought a new stake in shares of Aflac during the fourth quarter worth $25,000. Groupe la Francaise acquired a new position in Aflac in the first quarter valued at about $25,000. Whipplewood Advisors LLC acquired a new position in shares of Aflac in the first quarter valued at approximately $25,000. Nalls Sherbakoff Group LLC acquired a new position in shares of Aflac during the fourth quarter worth about $29,000. Finally, Evergreen Advisors LLC bought a new position in shares of Aflac during the 1st quarter worth approximately $29,000. Institutional investors and hedge funds own 67.44% of the company's stock.

About Aflac

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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