Kemper (NYSE:KMPR) Stock Rating Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Kemper to “strong sell” from “hold,” adding to a mixed analyst outlook. The stock carries an average “reduce” rating and a consensus price target of $37.67.
• Kemper’s shares opened at $28.91, well below their 52-week high of $49.40. Recent quarterly results beat EPS expectations at $0.45, but revenue fell 10.8% year over year to $1.09 billion and the company reported a negative net margin.
• Insiders purchased 14,000 shares worth about $367,880 over the past 90 days, while institutional investors own 86.23% of the company; BlackRock was among the largest recent new investors.

Kemper (NYSE:KMPR - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks reports.

A number of other equities analysts have also recently weighed in on the company. TD Cowen decreased their price objective on Kemper from $81.00 to $42.00 and set a "buy" rating on the stock in a report on Thursday, August 27th. Weiss Ratings downgraded Kemper from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, August 6th. UBS Group cut their target price on Kemper from $44.00 to $43.00 and set a "buy" rating for the company in a research note on Monday, August 10th. Finally, Wall Street Zen raised Kemper from a "sell" rating to a "hold" rating in a research note on Sunday, September 27th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $37.67.

Kemper Stock Down 2.8%

KMPR opened at $28.91 on Tuesday. The business's fifty day simple moving average is $27.19 and its 200 day simple moving average is $28.24. Kemper has a 52 week low of $22.69 and a 52 week high of $49.40. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.43. The stock has a market cap of $1.70 billion, a PE ratio of -3.44 and a beta of 1.07.

Kemper (NYSE:KMPR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The insurance provider reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.11. Kemper had a positive return on equity of 2.89% and a negative net margin of 10.84%. The firm had revenue of $1.09 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same quarter in the previous year, the company posted $1.30 earnings per share. The company's revenue was down 10.8% compared to the same quarter last year. As a group, research analysts expect that Kemper will post 2.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Gerald Laderman acquired 4,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was purchased at an average price of $26.49 per share, for a total transaction of $105,960.00. Following the completion of the transaction, the director owned 33,365 shares of the company's stock, valued at $883,838.85. This trade represents a 13.62% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Thomas Evans acquired 1,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was bought at an average price of $26.53 per share, with a total value of $26,530.00. Following the transaction, the executive vice president directly owned 91,629 shares of the company's stock, valued at approximately $2,430,917.37. The trade was a 1.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 14,000 shares of company stock worth $367,880. 0.61% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Kemper during the 2nd quarter valued at $227,331,000. Walleye Capital LLC purchased a new position in shares of Kemper in the second quarter valued at about $21,709,000. Bank of America Corp DE purchased a new position in shares of Kemper in the second quarter valued at about $20,800,000. Assenagon Asset Management S.A. bought a new position in shares of Kemper during the first quarter valued at about $18,074,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Kemper during the second quarter valued at about $13,896,000. 86.23% of the stock is owned by hedge funds and other institutional investors.

About Kemper

Kemper Corporation NYSE: KMPR is an insurance holding company that provides property and casualty insurance products to individuals, families and businesses in the United States. Its operations focus primarily on personal and commercial automobile insurance, along with related coverage designed for customers in specialty and preferred insurance markets.

The company offers products that may include nonstandard and standard auto insurance, homeowners and renters insurance, and other personal insurance solutions.

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