Assurant (NYSE:AIZ) Issues Quarterly Earnings Results, Beats Expectations By $0.66 EPS

Key Points

• Earnings beat: Assurant reported EPS of $5.95 versus $5.29 expected (a $0.66 beat) and revenue of $3.42 billion versus $3.29 billion, with a net margin of 6.81% and ROE of 18.65%.
• Stock reaction and valuation: Shares jumped about 2.6% to $235.05 on the news; the company has a market cap of $11.68 billion and a trailing P/E of 13.7.
• Analyst outlook: Several firms updated targets (Truist raised to $280, Morgan Stanley cut to $240), and the consensus rating is a Moderate Buy with an average price target of $256.83.

Assurant (NYSE:AIZ - Get Free Report) issued its earnings results on Tuesday. The financial services provider reported $5.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.29 by $0.66, FiscalAI reports. The business had revenue of $3.42 billion for the quarter, compared to analyst estimates of $3.29 billion. Assurant had a net margin of 6.81% and a return on equity of 18.65%.

Assurant Stock Up 2.6%

Assurant stock traded up $5.93 during trading hours on Tuesday, hitting $235.05. 183,940 shares of the stock traded hands, compared to its average volume of 390,623. Assurant has a one year low of $183.39 and a one year high of $246.31. The firm's 50-day moving average price is $222.74 and its two-hundred day moving average price is $226.30. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.38. The company has a market cap of $11.68 billion, a PE ratio of 13.70 and a beta of 0.56.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on AIZ shares. Truist Financial boosted their price target on Assurant from $265.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Morgan Stanley reduced their target price on Assurant from $248.00 to $240.00 and set an "equal weight" rating for the company in a report on Monday, April 6th. BMO Capital Markets decreased their price objective on Assurant from $255.00 to $246.00 and set an "outperform" rating on the stock in a report on Thursday, February 12th. Wall Street Zen downgraded Assurant from a "buy" rating to a "hold" rating in a research report on Saturday, February 14th. Finally, Weiss Ratings upgraded Assurant from a "buy (b)" rating to a "buy (b+)" rating in a research report on Monday, April 27th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $256.83.

Insiders Place Their Bets

In other news, EVP Subhashish Sengupta sold 1,880 shares of the business's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $210.53, for a total transaction of $395,796.40. Following the completion of the transaction, the executive vice president directly owned 2,895 shares of the company's stock, valued at $609,484.35. The trade was a 39.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Dimitry Dirienzo sold 750 shares of the stock in a transaction on Friday, March 20th. The shares were sold at an average price of $210.98, for a total value of $158,235.00. Following the transaction, the chief accounting officer directly owned 4,741 shares in the company, valued at $1,000,256.18. The trade was a 13.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 2,650 shares of company stock worth $558,331. Company insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On Assurant

Large investors have recently made changes to their positions in the company. Cresset Asset Management LLC increased its stake in Assurant by 5.4% in the second quarter. Cresset Asset Management LLC now owns 1,075 shares of the financial services provider's stock worth $212,000 after purchasing an additional 55 shares during the period. Banco Bilbao Vizcaya Argentaria S.A. boosted its holdings in Assurant by 4.3% in the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 1,541 shares of the financial services provider's stock worth $371,000 after acquiring an additional 63 shares in the last quarter. Quadrant Capital Group LLC increased its holdings in shares of Assurant by 4.6% during the third quarter. Quadrant Capital Group LLC now owns 1,488 shares of the financial services provider's stock valued at $322,000 after acquiring an additional 65 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in Assurant by 57.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 183 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 67 shares during the last quarter. Finally, Orion Porfolio Solutions LLC grew its position in shares of Assurant by 0.4% during the 4th quarter. Orion Porfolio Solutions LLC now owns 15,244 shares of the financial services provider's stock valued at $3,672,000 after acquiring an additional 67 shares during the period. 92.65% of the stock is owned by hedge funds and other institutional investors.

Assurant Company Profile

Assurant, Inc is a global provider of risk management products and services, specializing in the housing and lifestyle markets. The company offers insurance and related products designed to help consumers protect their homes, personal belongings, and electronic devices. Its core offerings include renters insurance, manufactured housing finance, flood insurance, mobile device protection plans, and extended service contracts for appliances and electronics.

Within its Global Housing segment, Assurant partners with mortgage lenders, financial institutions and government agencies to deliver specialty insurance and risk mitigation services.

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