Aflac (NYSE:AFL) Reaches New 12-Month High - Here's Why

Key Points

• Aflac stock hit a new 52-week high, trading as high as $119.64 after rising about 0.1% on the day.
• Analyst sentiment remains mixed: while Evercore upgraded Aflac to strong-buy, the broader consensus is still Hold with an average target price of $111.36.
• The company posted strong revenue growth in its latest quarter, with revenue up 27.9% year over year, and it also announced a quarterly dividend of $0.61 per share payable June 1.

Aflac Incorporated (NYSE:AFL - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The company traded as high as $119.64 and last traded at $119.6270, with a volume of 205381 shares traded. The stock had previously closed at $118.67.

Analyst Ratings Changes

Several brokerages have recently issued reports on AFL. Evercore raised shares of Aflac from a "strong sell" rating to a "strong-buy" rating in a research note on Thursday, April 9th. Piper Sandler cut their target price on Aflac from $130.00 to $125.00 and set an "overweight" rating on the stock in a research report on Friday, May 1st. UBS Group reduced their target price on Aflac from $116.00 to $114.00 and set a "neutral" rating on the stock in a report on Thursday, April 9th. Barclays set a $99.00 price target on Aflac and gave the company an "underweight" rating in a research report on Thursday, April 30th. Finally, Mizuho set a $104.00 price target on Aflac in a research note on Monday, May 4th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $111.36.

Aflac Trading Up 0.1%

The stock has a market capitalization of $60.46 billion, a PE ratio of 13.49, a PEG ratio of 2.04 and a beta of 0.62. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.26. The business's 50-day moving average is $111.89 and its two-hundred day moving average is $111.37.

Aflac (NYSE:AFL - Get Free Report) last released its quarterly earnings data 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). Aflac had a net margin of 25.60% and a return on equity of 13.88%. The company had revenue of $4.24 billion during the quarter, compared to analysts' expectations of $4.20 billion. During the same period last year, the business earned $1.66 earnings per share. The company's revenue for the quarter was up 27.9% compared to the same quarter last year. On average, analysts predict that Aflac Incorporated will post 7.12 earnings per share for the current year.

Aflac Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Wednesday, May 20th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $2.44 annualized dividend and a yield of 2.1%. Aflac's payout ratio is 27.70%.

Insiders Place Their Bets

In other Aflac news, major shareholder Post Holdings Co. Ltd. Japan sold 166,000 shares of the stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $112.38, for a total value of $18,655,080.00. Following the completion of the sale, the insider owned 51,723,100 shares of the company's stock, valued at $5,812,641,978. This trade represents a 0.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 698,115 shares of company stock valued at $78,057,526. 0.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Brighton Jones LLC boosted its position in Aflac by 64.4% in the 4th quarter. Brighton Jones LLC now owns 14,570 shares of the financial services provider's stock valued at $1,507,000 after buying an additional 5,708 shares during the last quarter. Bison Wealth LLC boosted its holdings in Aflac by 4.3% in the fourth quarter. Bison Wealth LLC now owns 4,402 shares of the financial services provider's stock valued at $455,000 after purchasing an additional 183 shares during the last quarter. WINTON GROUP Ltd purchased a new position in Aflac in the second quarter valued at about $280,000. Sei Investments Co. grew its stake in Aflac by 11.2% during the 2nd quarter. Sei Investments Co. now owns 150,334 shares of the financial services provider's stock valued at $15,854,000 after purchasing an additional 15,105 shares in the last quarter. Finally, Main Street Financial Solutions LLC grew its stake in Aflac by 1.6% during the 2nd quarter. Main Street Financial Solutions LLC now owns 11,953 shares of the financial services provider's stock valued at $1,261,000 after purchasing an additional 192 shares in the last quarter. 67.44% of the stock is currently owned by hedge funds and other institutional investors.

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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