Aflac (NYSE:AFL) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Aflac from “Hold” to “Sell,” while the broader analyst consensus remains “Hold,” with an average price target of $117.58.
• Aflac shares opened at $121.38 and have traded between $104.66 and $130.22 over the past year. The company reported quarterly EPS of $1.75, slightly below estimates, while revenue of $4.22 billion exceeded expectations but declined 1% year over year.
• Insiders sold 620,033 shares worth approximately $72.7 million over the last quarter, while institutional investors own 67.44% of Aflac’s outstanding stock.

Aflac (NYSE:AFL - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

AFL has been the topic of several other reports. Piper Sandler reaffirmed an "overweight" rating and issued a $138.00 price target (up from $130.00) on shares of Aflac in a report on Monday. Jefferies Financial Group reiterated a "hold" rating and set a $108.00 price objective (up from $100.00) on shares of Aflac in a research note on Friday, July 10th. Wells Fargo & Company boosted their price objective on Aflac from $111.00 to $120.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Barclays restated an "underweight" rating and issued a $99.00 target price (up from $98.00) on shares of Aflac in a research note on Friday, August 7th. Finally, UBS Group reaffirmed 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. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Aflac has a consensus rating of "Hold" and an average price target of $117.58.

Aflac Stock Performance

AFL opened at $121.38 on Friday. The company has a current ratio of 0.12, a quick ratio of 0.11 and a debt-to-equity ratio of 0.29. Aflac has a 12-month low of $104.66 and a 12-month high of $130.22. The firm has a 50 day moving average of $121.36 and a two-hundred day moving average of $115.82. The firm has a market capitalization of $60.85 billion, a PE ratio of 13.01, a P/E/G ratio of 1.95 and a beta of 0.60.

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

Insider Transactions at Aflac

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 63,000 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $118.12, for a total transaction of $7,441,560.00. Following the completion of the transaction, the insider owned 51,169,435 shares in the company, valued at $6,044,133,662.20. This represents a 0.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 620,033 shares of company stock worth $72,650,201 over the last quarter. Company insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Aflac

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Whipplewood Advisors LLC purchased a new position in Aflac in the 1st quarter valued at $25,000. Groupe la Francaise purchased a new stake in shares of Aflac during the first quarter worth $25,000. Quarry LP purchased a new stake in shares of Aflac during the fourth quarter worth $25,000. Edmond DE Rothschild Holding S.A. acquired a new stake in shares of Aflac in the second quarter valued at about $27,000. Finally, Nalls Sherbakoff Group LLC acquired a new stake in shares of Aflac in the fourth quarter valued at about $29,000. Hedge funds and other institutional investors 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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