Aflac (NYSE:AFL) Stock Price Target Lowered at Bank of America

Key Points

• Bank of America lowered Aflac’s price target from $137 to $133 but maintained a “Buy” rating, implying approximately 14.8% upside from the prior close.
• Analyst sentiment remains mixed: MarketBeat reports an average “Hold” rating and a consensus price target of $116.86, with several firms recently reducing their targets.
• Aflac’s latest quarterly results were broadly solid but slightly missed expectations, with EPS of $1.75 versus $1.76 expected and revenue of $4.22 billion, up from estimates of $4.11 billion.

Aflac (NYSE:AFL - Get Free Report) had its price target lowered by investment analysts at Bank of America from $137.00 to $133.00 in a note issued to investors on Monday. The brokerage currently has a "buy" rating on the financial services provider's stock. Bank of America's target price would indicate a potential upside of 14.82% from the company's previous close.

A number of other research analysts have also issued reports on AFL. Jefferies Financial Group reiterated a "hold" rating and set a $108.00 price target (up from $100.00) on shares of Aflac in a research report on Friday, July 10th. JPMorgan Chase & Co. reduced their price objective on Aflac from $117.00 to $116.00 and set a "neutral" rating for the company in a research note on Tuesday, August 11th. Weiss Ratings upgraded Aflac from a "buy (b)" rating to a "buy (a-)" rating in a report on Tuesday, September 22nd. Wells Fargo & Company reduced their price objective on shares of Aflac from $122.00 to $116.00 and set an "equal weight" rating for the company in a research note on Monday. Finally, Mizuho decreased their target price on shares of Aflac from $116.00 to $107.00 and set an "underperform" rating for the company in a report on Wednesday, October 7th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $116.86.

Aflac Stock Performance

Shares of AFL opened at $115.83 on Monday. The company has a market cap of $58.07 billion, a price-to-earnings ratio of 12.42, a price-to-earnings-growth ratio of 1.85 and a beta of 0.56. The firm has a fifty day moving average of $116.95 and a 200-day moving average of $116.97. Aflac has a 1 year low of $105.43 and a 1 year high of $130.22. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.12 and a current ratio of 0.12.

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

Insider Activity

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 12,000 shares of the company's stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $112.80, for a total value of $1,353,600.00. Following the completion of the sale, the insider directly owned 50,382,140 shares in the company, valued at approximately $5,683,105,392. This represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 465,851 shares of company stock valued at $54,213,397. 0.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Aflac

Several institutional investors have recently bought and sold shares of the stock. Whipplewood Advisors LLC bought a new stake in Aflac during the 1st quarter worth about $25,000. Groupe la Francaise acquired a new stake in shares of Aflac during the 1st quarter worth approximately $25,000. Archer Investment Corp acquired a new stake in shares of Aflac during the 2nd quarter worth approximately $26,000. Edmond DE Rothschild Holding S.A. bought a new stake in shares of Aflac during the second quarter worth approximately $27,000. Finally, Nalls Sherbakoff Group LLC bought a new stake in shares of Aflac during the fourth quarter worth approximately $29,000. 67.44% of the stock is currently owned by institutional investors.

Key Stories Impacting Aflac

Here are the key news stories impacting Aflac this week:

• Neutral Sentiment: KBW reaffirmed its “Hold” rating on Aflac, signaling that the firm sees limited near-term reasons to materially change its view of the insurer. KBW Reaffirms Their Hold Rating on AFLAC
• Neutral Sentiment: Aflac was reported trading at approximately €102.45 in premarket activity. The indication provides limited insight into U.S. trading because of currency and market differences. Aflac Stock Premarket
• Negative Sentiment: Wells Fargo lowered its Aflac price target to $116 from $122 and assigned an “Equal Weight” rating. The revised target implies almost no upside from the referenced share price, suggesting limited expected near-term appreciation. Wells Fargo Adjusts Price Target on Aflac
• Negative Sentiment: Major shareholder Post Holdings Co. Ltd. Japan sold 13,050 shares for approximately $1.48 million. Additional reported sales totaled roughly $1.35 million and $1.48 million, including a preplanned 12,000-share transaction. These trades may weigh on sentiment, although their preplanned nature reduces their significance as a signal about Aflac’s business outlook. Aflac Insider Sale

Aflac Company Profile

Aflac Incorporated NYSE: AFL is an insurance company that provides supplemental health and life insurance products to individuals, employers and groups. Its coverage is designed to help policyholders manage expenses that may not be fully covered by major medical insurance, including costs associated with illness, injury and other qualifying events.

The company's products include accident, cancer, critical illness, hospital indemnity, disability, dental, vision and life insurance. Aflac distributes its policies through workplace benefits programs, independent agents, brokers and other distribution channels.

Founded in 1955 as American Family Life Assurance Company of Columbus, Aflac has its headquarters in Columbus, Georgia.

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