AMERISAFE (NASDAQ:AMSF) Hits New 1-Year Low on Disappointing Earnings

Key Points

• AMERISAFE hit a new 52‑week low after reporting Q1 EPS of $0.50 vs. $0.52 expected, with shares falling as low as $29.45 and trading around $30.50 (down about 8%).
• The company pays a quarterly dividend of $0.41 (annualized $1.64), representing a 5.4% yield and a payout ratio of 66.4%.
• Analyst coverage is mixed (average rating "Hold") with an average price target of $45.33—well above the current share price—and institutional investors own roughly 97% of the stock.

AMERISAFE, Inc. (NASDAQ:AMSF - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $29.45 and last traded at $30.5020, with a volume of 7497 shares changing hands. The stock had previously closed at $33.15.

The insurance provider reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.52 by ($0.02). AMERISAFE had a return on equity of 15.89% and a net margin of 14.86%.

AMERISAFE Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 13th were given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date was Friday, March 13th. AMERISAFE's payout ratio is currently 66.40%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on AMSF shares. Wall Street Zen lowered AMERISAFE from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Citizens Jmp lowered their price target on AMERISAFE from $50.00 to $45.00 and set a "market outperform" rating for the company in a report on Monday, April 13th. Morgan Stanley set a $55.00 price objective on shares of AMERISAFE in a report on Friday, January 16th. Citigroup reaffirmed a "market outperform" rating on shares of AMERISAFE in a research report on Friday, January 16th. Finally, Weiss Ratings cut shares of AMERISAFE from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, March 2nd. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, AMERISAFE presently has an average rating of "Hold" and an average price target of $45.33.

Hedge Funds Weigh In On AMERISAFE

Institutional investors have recently bought and sold shares of the business. Auto Owners Insurance Co boosted its holdings in shares of AMERISAFE by 3,741.0% in the 4th quarter. Auto Owners Insurance Co now owns 16,397,229 shares of the insurance provider's stock valued at $62,982,000 after acquiring an additional 15,970,329 shares during the last quarter. Neuberger Berman Group LLC raised its holdings in shares of AMERISAFE by 0.3% during the fourth quarter. Neuberger Berman Group LLC now owns 1,800,952 shares of the insurance provider's stock worth $69,175,000 after purchasing an additional 6,175 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in AMERISAFE by 5.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 843,539 shares of the insurance provider's stock valued at $32,400,000 after purchasing an additional 41,496 shares during the period. Goldman Sachs Group Inc. lifted its position in AMERISAFE by 55.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 696,095 shares of the insurance provider's stock valued at $26,737,000 after purchasing an additional 248,105 shares during the period. Finally, Bank of America Corp DE boosted its holdings in AMERISAFE by 8.4% in the third quarter. Bank of America Corp DE now owns 658,682 shares of the insurance provider's stock valued at $28,877,000 after purchasing an additional 50,765 shares during the last quarter. 97.41% of the stock is owned by hedge funds and other institutional investors.

AMERISAFE Trading Down 8.0%

The firm has a 50-day simple moving average of $34.32 and a two-hundred day simple moving average of $37.65. The company has a market capitalization of $573.49 million, a price-to-earnings ratio of 12.51 and a beta of 0.31.

About AMERISAFE

Amerisafe, Inc NASDAQ: AMSF is a specialty provider of workers' compensation insurance products and services in the United States. The company focuses on underwriting and managing workers' compensation policies for small to mid-sized public and private businesses, particularly in higher-hazard industries such as retail, manufacturing, distribution and wholesale. Through its network of independent agents, Amerisafe delivers tailored coverage solutions that combine robust risk management support with loss prevention programs designed to enhance workplace safety.

In addition to core insurance offerings, Amerisafe provides extensive risk control resources, including safety training, on-site consultations and claims management services.

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