Aflac (NYSE:AFL) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Aflac from “sell” to “hold.” Analysts overall also have a “hold” consensus, with an average price target of $117.20.
• Aflac reported quarterly earnings of $2.43 per share, beating the $1.80 consensus, and revenue of $4.30 billion versus $4.12 billion expected. Revenue was down 31% year over year, and reports noted weaker net profit amid Japan results, currency headwinds and investment losses.
• Major shareholder Post Holdings sold 113,611 shares, and company insiders sold about 713,662 shares worth $83.3 million over the prior 90 days.

Aflac (NYSE:AFL - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently issued reports on the company. Jefferies Financial Group boosted their target price on Aflac from $108.00 to $112.00 and gave the company a "hold" rating in a research note on Monday, August 10th. Bank of America dropped their price target on shares of Aflac from $137.00 to $133.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Wells Fargo & Company cut their price objective on Aflac from $122.00 to $116.00 and set an "equal weight" rating for the company in a research report on Monday, October 12th. Mizuho decreased their price target on Aflac from $116.00 to $107.00 and set an "underperform" rating on the stock in a report on Wednesday, October 7th. Finally, Raymond James Financial raised their price target on shares of Aflac from $119.00 to $123.00 in a research note on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $117.20.

Aflac Stock Down 1.8%

Shares of NYSE AFL opened at $123.98 on Friday. The company has a market cap of $62.16 billion, a price-to-earnings ratio of 16.48, a PEG ratio of 1.97 and a beta of 0.55. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.29. The stock has a 50-day moving average price of $117.49 and a two-hundred day moving average price of $116.20. Aflac has a 12 month low of $105.76 and a 12 month high of $131.18.

Aflac (NYSE:AFL - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The financial services provider reported $2.43 earnings per share for the quarter, topping the consensus estimate of $1.80 by $0.63. The company had revenue of $4.30 billion for the quarter, compared to analysts' expectations of $4.12 billion. Aflac had a net margin of 26.91% and a return on equity of 13.27%. Aflac's revenue for the quarter was down 31.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.49 earnings per share. As a group, analysts forecast that Aflac will post 7.12 earnings per share for the current fiscal year.

Insider Buying and Selling at Aflac

In other news, major shareholder Post Holdings Co. Ltd. Japan sold 113,611 shares of the firm's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $118.53, for a total value of $13,466,311.83. Following the completion of the transaction, the insider owned 50,134,329 shares of the company's stock, valued at approximately $5,942,422,016.37. This trade represents a 0.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 713,662 shares of company stock valued at $83,323,978 over the last ninety days. Insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in Aflac in the 2nd quarter worth $4,093,787,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Aflac by 27.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,201,217 shares of the financial services provider's stock valued at $609,843,000 after purchasing an additional 1,132,091 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Aflac by 1.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,550,855 shares of the financial services provider's stock worth $499,216,000 after buying an additional 67,650 shares during the period. Legal & General Group Plc bought a new position in shares of Aflac during the second quarter valued at approximately $404,639,000. Finally, Amundi increased its position in Aflac by 22.6% during the 1st quarter. Amundi now owns 3,268,209 shares of the financial services provider's stock valued at $358,555,000 after buying an additional 603,426 shares in the last quarter. Hedge funds and other institutional investors own 67.44% of the company's stock.

Aflac News Summary

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac reported adjusted Q3 earnings of $2.43 per share, ahead of the roughly $1.80 analyst consensus. Stronger U.S. profits and lower expenses helped drive the beat; reports also noted a 490-basis-point decline in the U.S. claims ratio. Aflac Q3 Earnings Beat Estimates on Strong U.S. Profit Growth
• Positive Sentiment: The company declared a quarterly dividend of $0.61 per share, payable Dec. 1, continuing its long record of dividend growth and supporting its appeal to income investors. Aflac declares fourth-quarter dividend
• Neutral Sentiment: Aflac expects Japan pretax margins of 35%–38% and is targeting reinsurance cession of 30% of its FSA reserves. The plan may help manage capital and risk, though its effect on future earnings remains a consideration. Aflac Japan margin and reinsurance plans
• Negative Sentiment: Investors also faced weaker Japan results, currency headwinds and portfolio losses. Aflac’s reported Q3 net profit fell, highlighting the gap between the adjusted earnings beat and bottom-line performance. Aflac Q3 profit falls

About Aflac

Aflac Incorporated is an insurance company that provides supplemental health and life insurance to individuals and businesses. Its products are designed to help customers manage expenses that may not be covered by major medical insurance, including costs associated with accidents, cancer, critical illness and hospital stays.

The company operates primarily in the United States and Japan. In the U.S., Aflac offers workplace benefits such as accident, disability, dental, vision and life insurance.

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