AMERISAFE (NASDAQ:AMSF) Stock Gets Price Target Trim from Truist Financial

Key Points

• Truist Financial cut AMERISAFE’s price target from $27 to $25 while maintaining a “hold” rating, implying about 13.7% upside from the cited share price. The analyst consensus remains “Hold,” with a higher average target of $33.33.
• AMERISAFE shares fell 4.8% to $21.98, near their 52-week low, after the company reported quarterly EPS of $0.40 and revenue of $76.67 million—both below analyst expectations.
• Investor sentiment is mixed: institutional ownership remains high at 97.41%, but analysts cited continued earnings declines and margin pressure, while the company’s $0.41 quarterly dividend offers an indicated yield of roughly 7.1%.

AMERISAFE (NASDAQ:AMSF - Get Free Report) had its price target cut by research analysts at Truist Financial from $27.00 to $25.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has a "hold" rating on the insurance provider's stock. Truist Financial's price target points to a potential upside of 13.74% from the company's current price.

Several other research analysts have also issued reports on the company. Citigroup reaffirmed a "market outperform" rating on shares of AMERISAFE in a research report on Monday, October 12th. Citizens Jmp lowered their price target on shares of AMERISAFE from $40.00 to $35.00 and set a "market outperform" rating for the company in a report on Thursday. Wall Street Zen downgraded shares of AMERISAFE from a "hold" rating to a "sell" rating in a research report on Tuesday, October 20th. Zacks Research raised AMERISAFE from a "strong sell" rating to a "hold" rating in a research report on Monday, September 28th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of AMERISAFE in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, AMERISAFE currently has a consensus rating of "Hold" and a consensus target price of $33.33.

AMERISAFE Stock Down 4.8%

Shares of NASDAQ:AMSF traded down $1.11 during midday trading on Friday, hitting $21.98. The stock had a trading volume of 74,292 shares, compared to its average volume of 291,771. The company's 50-day moving average price is $25.00 and its 200-day moving average price is $31.07. The company has a market capitalization of $407.42 million, a P/E ratio of 10.25 and a beta of 0.24. AMERISAFE has a fifty-two week low of $21.97 and a fifty-two week high of $42.10.

AMERISAFE (NASDAQ:AMSF - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The insurance provider reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.08). The business had revenue of $76.67 million during the quarter, compared to analyst estimates of $84.72 million. AMERISAFE had a net margin of 12.10% and a return on equity of 13.98%. Research analysts expect that AMERISAFE will post 1.95 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of AMSF. Global Retirement Partners LLC bought a new stake in AMERISAFE in the second quarter valued at $26,000. Parallel Advisors LLC increased its position in AMERISAFE by 5,714.3% during the 1st quarter. Parallel Advisors LLC now owns 814 shares of the insurance provider's stock valued at $27,000 after buying an additional 800 shares in the last quarter. Allworth Financial LP raised its stake in AMERISAFE by 317.8% during the second quarter. Allworth Financial LP now owns 1,124 shares of the insurance provider's stock valued at $38,000 after buying an additional 855 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in AMERISAFE by 148.2% during the first quarter. PNC Financial Services Group Inc. now owns 1,571 shares of the insurance provider's stock valued at $52,000 after buying an additional 938 shares during the last quarter. Finally, Quantbot Technologies LP bought a new stake in AMERISAFE in the second quarter worth $49,000. Hedge funds and other institutional investors own 97.41% of the company's stock.

Key Headlines Impacting AMERISAFE

Here are the key news stories impacting AMERISAFE this week:

• Positive Sentiment: Management expects workers’ compensation loss costs to decline by approximately 5% to 6% through 2027, which could support future claims margins if pricing discipline improves. However, executives described current competition as “irrational.” Amerisafe sees loss cost declines into 2027
• Positive Sentiment: AMERISAFE declared a quarterly dividend of $0.41 per share, or $1.64 annualized, representing an indicated yield of roughly 7.1% at the referenced share price. The dividend may provide downside support for income-focused investors.
• Positive Sentiment: Citizens reaffirmed an “outperform” rating, although it reduced its price target from $40 to $35 because of the quarterly misses. The revised target still implies substantial potential upside from recent levels. Citizens lowers AMERISAFE price target
• Neutral Sentiment: Third-quarter revenue increased year over year to approximately $79.8 million, while operating profit rose to about $32.8 million. These gains indicate stronger core operating performance, but they did not translate into higher net income or earnings per share.
• Negative Sentiment: AMERISAFE reported EPS of roughly $0.39 to $0.40, down from $0.55 a year earlier and below analyst expectations near $0.47 to $0.49. Revenue also fell short of estimates, coming in near $79.8 million versus expectations of roughly $85 million. AMERISAFE lags third-quarter estimates
• Negative Sentiment: The quarter marked a fifth consecutive earnings decline, with margins pressured by rising commission costs despite lower new-business volumes. Operating cash flow also weakened to approximately $1.8 million, adding to investor concerns about the quality and sustainability of earnings. Amerisafe third-quarter earnings analysis

AMERISAFE Company Profile

AMERISAFE, Inc is a specialty workers' compensation insurance company serving small and midsized businesses. The company focuses on employers in industries with elevated workplace risks, including construction, trucking, logging, agriculture, manufacturing, and maritime operations.

Through its insurance subsidiaries, AMERISAFE provides workers' compensation coverage designed to protect businesses from costs associated with workplace injuries and occupational illnesses. Its services also include workplace safety and loss-control support, claims management, medical cost containment, and premium audit services.

Headquartered in DeRidder, Louisiana, AMERISAFE primarily serves employers in the southeastern and south-central United States.

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