Aflac Incorporated (NYSE:AFL) Stock Has Average Target Price of $117.20

Key Points

• Analysts are broadly neutral on Aflac: Sixteen analysts give the stock a consensus “Hold” rating, with an average 12-month price target of $117.20.
• Aflac reported quarterly EPS of $2.43, beating the $1.80 consensus, while revenue of $4.30 billion also topped estimates; revenue was down 31% year over year.
• The company declared a quarterly dividend of $0.61 per share, equivalent to $2.44 annually and a 2.0% yield.

Aflac Incorporated (NYSE:AFL - Get Free Report) has received a consensus recommendation of "Hold" from the sixteen analysts that are currently covering the company, MarketBeat reports. Four investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, three have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $117.20.

AFL has been the subject of several analyst reports. TD Cowen reissued a "hold" rating and issued a $110.00 target price (up from $101.00) on shares of Aflac in a report on Wednesday, July 22nd. JPMorgan Chase & Co. increased their price target on shares of Aflac from $116.00 to $119.00 and gave the stock a "neutral" rating in a research report on Thursday, October 15th. Weiss Ratings raised shares of Aflac from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Tuesday. Piper Sandler reissued an "overweight" rating and set a $138.00 price objective (up from $130.00) on shares of Aflac in a report on Monday, August 10th. Finally, Barclays reaffirmed an "underweight" rating and issued a $101.00 target price (up from $99.00) on shares of Aflac in a report on Wednesday, October 7th.

Aflac Price Performance

NYSE:AFL opened at $123.98 on Friday. The firm has a market cap of $62.16 billion, a P/E ratio of 18.07, a price-to-earnings-growth ratio of 1.97 and a beta of 0.55. Aflac has a 12 month low of $105.76 and a 12 month high of $131.18. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.29. The stock has a 50 day moving average of $117.49 and a two-hundred day moving average of $116.20.

Aflac (NYSE:AFL - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The financial services provider reported $2.43 EPS for the quarter, topping the consensus estimate of $1.80 by $0.63. The firm had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.12 billion. Aflac had a return on equity of 13.27% and a net margin of 26.91%. Aflac's revenue for the quarter was down 31.0% on a year-over-year basis. During the same period in the previous year, the company posted $2.49 EPS. On average, analysts expect that Aflac will post 7.12 earnings per share for the current fiscal year.

Aflac Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Wednesday, November 18th will be paid a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Wednesday, November 18th. Aflac's payout ratio is presently 26.15%.

Trending Headlines about Aflac

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac reported adjusted Q3 earnings of $2.43 per share, ahead of the roughly $1.80 analyst consensus. Stronger U.S. profits and lower expenses helped drive the beat; reports also noted a 490-basis-point decline in the U.S. claims ratio. Aflac Q3 Earnings Beat Estimates on Strong U.S. Profit Growth
• Positive Sentiment: The company declared a quarterly dividend of $0.61 per share, payable Dec. 1, continuing its long record of dividend growth and supporting its appeal to income investors. Aflac declares fourth-quarter dividend
• Neutral Sentiment: Aflac expects Japan pretax margins of 35%–38% and is targeting reinsurance cession of 30% of its FSA reserves. The plan may help manage capital and risk, though its effect on future earnings remains a consideration. Aflac Japan margin and reinsurance plans
• Negative Sentiment: Investors also faced weaker Japan results, currency headwinds and portfolio losses. Aflac’s reported Q3 net profit fell, highlighting the gap between the adjusted earnings beat and bottom-line performance. Aflac Q3 profit falls

Insider Buying and Selling at Aflac

In other Aflac news, major shareholder Post Holdings Co. Ltd. Japan sold 113,611 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $118.53, for a total value of $13,466,311.83. Following the completion of the sale, the insider owned 50,134,329 shares in the company, valued at $5,942,422,016.37. This trade represents a 0.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 713,662 shares of company stock valued at $83,323,978 over the last ninety days. Insiders own 0.80% of the company's stock.

Institutional Trading of Aflac

Hedge funds and other institutional investors have recently bought and sold shares of the business. Money Concepts Capital Corp lifted its position in Aflac by 3.9% in the third quarter. Money Concepts Capital Corp now owns 19,243 shares of the financial services provider's stock valued at $2,151,000 after purchasing an additional 716 shares during the period. Allworth Financial LP raised its stake in Aflac by 19.8% in the third quarter. Allworth Financial LP now owns 40,546 shares of the financial services provider's stock valued at $4,754,000 after purchasing an additional 6,688 shares in the last quarter. Eurizon Capital SGR S.p.A. increased its position in shares of Aflac by 8.8% during the third quarter. Eurizon Capital SGR S.p.A. now owns 65,017 shares of the financial services provider's stock worth $7,279,000 after acquiring an additional 5,261 shares in the last quarter. CENTRAL TRUST Co boosted its holdings in shares of Aflac by 1.1% in the 3rd quarter. CENTRAL TRUST Co now owns 19,104 shares of the financial services provider's stock worth $2,135,000 after purchasing an additional 205 shares in the last quarter. Finally, Maryland State Retirement & Pension System boosted its stake in Aflac by 13.5% during the 3rd quarter. Maryland State Retirement & Pension System now owns 27,387 shares of the financial services provider's stock valued at $3,061,000 after purchasing an additional 3,267 shares during the last quarter. Hedge funds and other institutional investors own 67.44% of the company's stock.

About Aflac

Aflac Incorporated is an insurance company that provides supplemental health and life insurance to individuals and businesses. Its products are designed to help customers manage expenses that may not be covered by major medical insurance, including costs associated with accidents, cancer, critical illness and hospital stays.

The company operates primarily in the United States and Japan. In the U.S., Aflac offers workplace benefits such as accident, disability, dental, vision and life insurance.

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