Aflac (NYSE:AFL) Reaches New 52-Week High - Here's Why

Key Points

• Aflac shares hit a new 52-week high, trading as high as $122.80 during the session and last changing hands around $121.51, extending recent momentum above both its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but generally constructive: Aflac has a consensus rating of Hold with an average price target of $112.18, though several firms recently raised targets and Piper Sandler reiterated an Overweight rating with a $130 target.
• The insurer reported higher revenue in its latest quarter and continues to reward shareholders with a dividend of $0.61 per share, equal to a 2.0% annualized yield; institutional investors also hold a large majority of the stock.

Aflac Incorporated (NYSE:AFL - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $122.80 and last traded at $121.5140, with a volume of 1653236 shares. The stock had previously closed at $120.47.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Keefe, Bruyette & Woods raised their target price on shares of Aflac from $113.00 to $115.00 and gave the company a "market perform" rating in a research note on Friday, April 10th. Barclays cut their price target on Aflac from $99.00 to $98.00 and set an "underweight" rating on the stock in a research note on Tuesday. Piper Sandler reaffirmed an "overweight" rating and set a $130.00 price objective (up from $125.00) on shares of Aflac in a research report on Tuesday, May 26th. Wall Street Zen raised Aflac from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Evercore raised Aflac from a "strong sell" rating to a "strong-buy" rating in a research note on Thursday, April 9th. 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. Based on data from MarketBeat.com, Aflac has an average rating of "Hold" and a consensus price target of $112.18.

Aflac Price Performance

The company has a market capitalization of $61.85 billion, a P/E ratio of 13.79, a price-to-earnings-growth ratio of 2.11 and a beta of 0.61. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.11 and a quick ratio of 0.11. The firm's 50-day moving average is $116.54 and its 200-day moving average is $113.06.

Aflac (NYSE:AFL - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.80 by ($0.05). The company had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $4.20 billion. Aflac had a net margin of 25.60% and a return on equity of 13.88%. The business's revenue for the quarter was up 27.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.66 EPS. Analysts predict that Aflac Incorporated will post 7.08 EPS for the current fiscal year.

Aflac Announces Dividend

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

Insider Buying and Selling

In other news, major shareholder Post Holdings Co. Ltd. Japan sold 86,155 shares of the stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $113.24, for a total transaction of $9,756,192.20. Following the completion of the transaction, the insider directly owned 51,636,945 shares in the company, valued at approximately $5,847,367,651.80. This represents a 0.17% decrease in their position. The transaction 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 sold 831,071 shares of company stock worth $96,874,824 over the last three months. 0.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AFL. Vanguard Group Inc. lifted its stake in shares of Aflac by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 57,142,072 shares of the financial services provider's stock valued at $6,301,056,000 after purchasing an additional 6,759,169 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Aflac by 1.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,550,855 shares of the financial services provider's stock valued at $499,216,000 after purchasing an additional 67,650 shares during the last quarter. Legal & General Group Plc raised its holdings in Aflac by 0.3% during the 3rd quarter. Legal & General Group Plc now owns 3,926,777 shares of the financial services provider's stock valued at $438,621,000 after buying an additional 13,666 shares during the period. Norges Bank bought a new stake in Aflac in the fourth quarter worth $420,078,000. Finally, Amundi lifted its position in Aflac by 22.6% in the first quarter. Amundi now owns 3,268,209 shares of the financial services provider's stock worth $358,555,000 after buying an additional 603,426 shares during the last quarter. Hedge funds and other institutional investors own 67.44% of the company's stock.

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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