Unum Group (NYSE:UNM) Stock Price Target Cut by Morgan Stanley

Key Points

• Morgan Stanley cut Unum Group’s price target from $92 to $85 and maintained an “equal weight” rating, implying 4.63% upside from the previous close.
• Analyst sentiment remains broadly positive: the consensus rating is “Moderate Buy,” with a $95.67 average price target; nine analysts rate the stock Buy and five Hold.
• Unum reported quarterly EPS of $2.20, beating the $2.16 estimate, and revenue of $3.40 billion versus $2.97 billion expected. The company also authorized a $1 billion share repurchase plan, covering up to 7% of its shares.

Unum Group (NYSE:UNM - Get Free Report) had its price target decreased by stock analysts at Morgan Stanley from $92.00 to $85.00 in a report released on Tuesday, Benzinga reports. The firm currently has an "equal weight" rating on the financial services provider's stock. Morgan Stanley's target price would indicate a potential upside of 4.63% from the stock's previous close.

Other analysts have also recently issued research reports about the stock. Atlantic Securities set a $88.00 target price on shares of Unum Group in a research note on Wednesday, July 15th. Barclays dropped their price target on shares of Unum Group from $109.00 to $101.00 and set an "overweight" rating on the stock in a research note on Wednesday, November 4th. Wells Fargo & Company increased their price target on shares of Unum Group from $100.00 to $102.00 and gave the stock an "overweight" rating in a report on Monday, October 12th. Truist Financial reduced their price objective on shares of Unum Group from $96.00 to $85.00 and set a "buy" rating for the company in a research report on Thursday, November 5th. Finally, Keefe, Bruyette & Woods lowered their price objective on Unum Group from $108.00 to $97.00 and set an "outperform" rating on the stock in a report on Thursday, November 5th. Nine research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $95.67.

Unum Group Stock Performance

Shares of UNM stock traded up $1.01 during midday trading on Tuesday, hitting $81.24. The company had a trading volume of 483,244 shares, compared to its average volume of 1,628,390. The stock has a market cap of $12.86 billion, a price-to-earnings ratio of 57.63, a PEG ratio of 0.74 and a beta of 0.25. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.34 and a quick ratio of 0.34. The company's 50 day simple moving average is $91.06 and its 200 day simple moving average is $84.06. Unum Group has a 52-week low of $69.02 and a 52-week high of $96.77.

Unum Group (NYSE:UNM - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The financial services provider reported $2.20 EPS for the quarter, topping the consensus estimate of $2.16 by $0.04. Unum Group had a return on equity of 12.57% and a net margin of 1.94%. The business had revenue of $3.40 billion during the quarter, compared to analysts' expectations of $2.97 billion. During the same quarter in the prior year, the business earned $2.09 earnings per share. Research analysts anticipate that Unum Group will post 8.41 earnings per share for the current fiscal year.

Unum Group declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 26th that authorizes the company to repurchase $1 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase up to 7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Unum Group news, Director Timothy F. Keaney sold 4,300 shares of the company's stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $94.02, for a total transaction of $404,286.00. Following the transaction, the director directly owned 36,502 shares in the company, valued at approximately $3,431,918.04. This represents a 10.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Lisa Iglesias sold 4,000 shares of the stock in a transaction dated 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 of the company's stock, valued at approximately $2,403,781.32. This trade represents a 13.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 10,488 shares of company stock valued at $988,396. Corporate insiders own 1.00% of the company's stock.

Institutional Trading of Unum Group

A number of institutional investors have recently bought and sold shares of the company. Laurel Wealth Advisors LLC purchased a new position in shares of Unum Group in the third quarter valued at $29,000. CX Institutional grew its stake in Unum Group by 57.8% in the 3rd quarter. CX Institutional now owns 352 shares of the financial services provider's stock valued at $31,000 after acquiring an additional 129 shares during the last quarter. City State Bank acquired a new stake in Unum Group in the 3rd quarter valued at about $32,000. Ancora Advisors LLC acquired a new stake in Unum Group in the 2nd quarter valued at about $39,000. Finally, Trust Co. of Vermont purchased a new position in Unum Group during the 2nd quarter valued at about $47,000. 86.57% of the stock is currently owned by hedge funds and other institutional investors.

Unum Group Company Profile

Unum Group is an insurance holding company that provides employee benefits and related services, primarily to employers and their workers. Its offerings include group disability and life insurance, accident and critical illness coverage, and services that help employers manage employee leave and workplace absence. Through its Unum and Colonial Life businesses, the company also provides voluntary benefits that employees can elect through their workplaces. In the United Kingdom, Unum offers workplace benefits including income protection, life insurance and critical illness coverage.

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