Assurant (NYSE:AIZ) Trading 9.6% Higher After Strong Earnings

Key Points

• Assurant's stock price surged 9.6% after the company reported better-than-expected quarterly earnings of $5.56 per share, exceeding analysts' estimates of $4.43.
• Assurant also declared a quarterly dividend of $0.80, representing a **1.6% dividend yield** and a payout ratio of 24.94%.
• Analysts have updated their price targets for Assurant, with the consensus rating being "Moderate Buy" and an average target price of **$228.83**.

Assurant, Inc. (NYSE:AIZ - Get Free Report) shares shot up 9.6% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $205.20 and last traded at $207.03. 223,982 shares traded hands during mid-day trading, a decline of 54% from the average session volume of 485,979 shares. The stock had previously closed at $188.83.

The financial services provider reported $5.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.43 by $1.13. The firm had revenue of $3.16 billion during the quarter, compared to analyst estimates of $3.13 billion. Assurant had a return on equity of 16.47% and a net margin of 5.83%. The firm's quarterly revenue was up 8.0% on a year-over-year basis. During the same period last year, the company posted $4.77 EPS.

Assurant Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Monday, June 9th were given a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Monday, June 9th. Assurant's dividend payout ratio is 23.17%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on AIZ shares. Morgan Stanley increased their price objective on Assurant from $217.00 to $218.00 and gave the company an "equal weight" rating in a research report on Monday, July 14th. Keefe, Bruyette & Woods increased their target price on Assurant from $224.00 to $225.00 and gave the company an "outperform" rating in a report on Monday, May 19th. Finally, Wall Street Zen upgraded Assurant from a "hold" rating to a "buy" rating in a report on Saturday. One research analyst has rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $228.83.

Insider Activity

In related news, EVP Jay Rosenblum sold 1,000 shares of the stock in a transaction on Friday, May 16th. The stock was sold at an average price of $201.93, for a total transaction of $201,930.00. Following the completion of the sale, the executive vice president directly owned 11,775 shares in the company, valued at approximately $2,377,725.75. This trade represents a 7.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.51% of the company's stock.

Institutional Trading of Assurant

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp increased its position in Assurant by 8.3% during the second quarter. Bank of New York Mellon Corp now owns 4,051,114 shares of the financial services provider's stock worth $800,054,000 after buying an additional 310,455 shares during the last quarter. Invesco Ltd. grew its position in shares of Assurant by 28.0% in the first quarter. Invesco Ltd. now owns 1,479,310 shares of the financial services provider's stock valued at $310,285,000 after purchasing an additional 323,573 shares during the last quarter. Massachusetts Financial Services Co. MA grew its position in shares of Assurant by 4.5% in the second quarter. Massachusetts Financial Services Co. MA now owns 1,245,022 shares of the financial services provider's stock valued at $245,879,000 after purchasing an additional 53,773 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in Assurant by 8.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 889,310 shares of the financial services provider's stock worth $186,533,000 after buying an additional 72,046 shares in the last quarter. Finally, Northern Trust Corp grew its position in Assurant by 1.1% during the first quarter. Northern Trust Corp now owns 841,006 shares of the financial services provider's stock worth $176,401,000 after buying an additional 9,142 shares in the last quarter. 92.65% of the stock is currently owned by hedge funds and other institutional investors.

Assurant Trading Up 0.8%

The stock has a market cap of $10.35 billion, a P/E ratio of 14.73 and a beta of 0.58. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.40 and a quick ratio of 0.40. The business's 50 day simple moving average is $193.86 and its 200 day simple moving average is $199.12.

Assurant Company Profile

Assurant, Inc, together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products; and vehicle protection, commercial equipment, and other related services.