Unum Group (NYSE:UNM) Stock Price Target Cut by Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Unum’s price target from $108 to $97 but kept its Outperform rating; the new target implies about 32% upside from the quoted share price of $73.50.
• Analyst sentiment remains generally positive: Unum has a “Moderate Buy” consensus rating and an average price target of $96.92, despite reductions from other firms including Barclays and Truist.
• Unum’s third-quarter adjusted EPS of $2.20 beat estimates, but the company reported a $419.7 million net loss, largely due to investment losses. It also closed a $3.8 billion long-term-care reinsurance agreement.

Unum Group (NYSE:UNM - Get Free Report) had its price target decreased by analysts at Keefe, Bruyette & Woods from $108.00 to $97.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods's price objective indicates a potential upside of 31.97% from the stock's current price.

Several other research firms have also recently weighed in on UNM. Barclays dropped their price target on shares of Unum Group from $109.00 to $101.00 and set an "overweight" rating for the company in a research note on Wednesday. Weiss Ratings reiterated a "buy (b)" rating on shares of Unum Group in a report on Monday, October 26th. Wells Fargo & Company increased their price objective on Unum Group from $100.00 to $102.00 and gave the stock an "overweight" rating in a research report on Monday, October 12th. Morgan Stanley raised their target price on Unum Group from $87.00 to $92.00 and gave the stock an "equal weight" rating in a research note on Monday, August 24th. Finally, Truist Financial reduced their target price on Unum Group from $96.00 to $85.00 and set a "buy" rating on the stock in a research report on Thursday. Eight equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $96.92.

Unum Group Price Performance

Shares of NYSE:UNM traded down $1.29 during midday trading on Thursday, reaching $73.50. 2,727,907 shares of the company's stock traded hands, compared to its average volume of 1,600,569. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.34 and a current ratio of 0.34. The company has a market cap of $11.64 billion, a P/E ratio of 51.98, a PEG ratio of 0.88 and a beta of 0.25. Unum Group has a 1 year low of $69.02 and a 1 year high of $96.77. The company has a fifty day simple moving average of $92.00 and a two-hundred day simple moving average of $84.05.

Unum Group (NYSE:UNM - Get Free Report) last released its earnings results on Tuesday, November 3rd. The financial services provider reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.16 by $0.04. The business had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $2.91 billion. Unum Group had a return on equity of 12.52% and a net margin of 1.94%. During the same quarter last year, the business posted $2.09 earnings per share. Equities analysts predict that Unum Group will post 8.64 EPS for the current fiscal year.

Unum Group announced that its Board of Directors has authorized a share buyback plan on Wednesday, August 26th that permits the company to buy back $1 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Unum Group news, CAO Lynn Jr sold 2,188 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $94.31, for a total transaction of $206,350.28. Following the sale, the chief accounting officer owned 8,154 shares of the company's stock, valued at approximately $769,003.74. This trade represents a 21.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Lisa Iglesias sold 4,000 shares of the stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $94.44, for a total transaction of $377,760.00. Following the completion of the transaction, the executive vice president directly owned 25,453 shares in the company, valued at $2,403,781.32. This trade represents a 13.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 10,488 shares of company stock valued at $988,396 in the last ninety days. Insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Csenge Advisory Group raised its stake in Unum Group by 20.9% during the 3rd quarter. Csenge Advisory Group now owns 6,305 shares of the financial services provider's stock worth $553,000 after buying an additional 1,091 shares during the period. New York Life Investment Management LLC grew its stake in Unum Group by 6.3% in the third quarter. New York Life Investment Management LLC now owns 21,049 shares of the financial services provider's stock valued at $1,847,000 after acquiring an additional 1,244 shares during the period. AlphaCore Capital LLC increased its holdings in shares of Unum Group by 0.5% in the third quarter. AlphaCore Capital LLC now owns 97,955 shares of the financial services provider's stock worth $8,594,000 after acquiring an additional 449 shares in the last quarter. Retirement Systems of Alabama increased its holdings in shares of Unum Group by 3.5% in the third quarter. Retirement Systems of Alabama now owns 284,930 shares of the financial services provider's stock worth $24,997,000 after acquiring an additional 9,596 shares in the last quarter. Finally, Fulcrum Asset Management LLP acquired a new stake in shares of Unum Group during the third quarter worth about $626,000. Institutional investors and hedge funds own 86.57% of the company's stock.

Key Stories Impacting Unum Group

Here are the key news stories impacting Unum Group this week:

• Positive Sentiment: Unum closed a $3.8 billion long-term-care reinsurance agreement with Fortitude Re, which may help manage exposure to long-term-care obligations. Fortitude Re announces agreement closing
• Positive Sentiment: Adjusted third-quarter EPS of $2.20 topped analyst expectations and increased from $2.09 a year earlier. Premium growth and Colonial Life’s performance helped offset elevated disability claims. Zacks Q3 earnings coverage
• Neutral Sentiment: Truist cut its price target to $85 from $96 but maintained a Buy rating. Barclays lowered its target to $101 from $109 while retaining an Overweight rating—both still see upside from the quoted share price. Analyst price-target coverage
• Negative Sentiment: Unum reported a $419.7 million third-quarter net loss, versus $39.7 million in net income a year earlier. The loss included $853 million in investment losses, primarily impairment charges. Reports also flagged reserve-methodology changes and an SEC comment-letter process, adding uncertainty. Unum Q3 results
• Negative Sentiment: Levi & Korsinsky announced an investigation on behalf of shareholders who lost money, citing the quarterly loss and disclosures about the SEC process and reserve changes. The investigation is not a finding of wrongdoing, but may weigh on sentiment. Investigation notice

Unum Group Company Profile

Unum Group is an insurance company that provides employee benefits and related protection products through employers, as well as selected individual policies. Its offerings are designed to help people manage the financial impact of illness, injury, death and other unexpected events.

The company's products include short-term and long-term disability insurance, group and individual life insurance, accidental death and dismemberment coverage, and supplemental health benefits such as accident, critical illness and hospital indemnity insurance.

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