Employers Holdings Inc (NYSE:EIG) to Issue $0.32 Quarterly Dividend

Key Points

• Employers Holdings Inc announced a quarterly dividend of $0.32 per share, with an annualized yield of 2.81% and a projected payout ratio of 37.1% for the upcoming year based on expected earnings.
• The company's stock traded down 1.2% on Wednesday, with a market cap of $1.10 billion and a PE ratio of 11.07.
• Recent insider trading activity includes EVP John M. Mutschink selling 2,000 shares, while EVP Michael Pedraja increased his holdings by purchasing 3,050 shares, reflecting differing investor sentiments within the company management.

Employers Holdings Inc (NYSE:EIG - Get Free Report) announced a quarterly dividend on Wednesday, July 30th, RTT News reports. Shareholders of record on Wednesday, August 13th will be given a dividend of 0.32 per share by the financial services provider on Wednesday, August 27th. This represents a c) annualized dividend and a yield of 3.3%. The ex-dividend date is Wednesday, August 13th.

Employers has a dividend payout ratio of 36.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Employers to earn $3.45 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 37.1%.

Employers Price Performance

NYSE EIG traded down $2.29 during trading on Friday, hitting $38.99. 472,258 shares of the company's stock traded hands, compared to its average volume of 166,309. The stock has a fifty day moving average of $46.71 and a two-hundred day moving average of $48.37. The firm has a market cap of $937.43 million, a P/E ratio of 9.51 and a beta of 0.54. Employers has a 12-month low of $38.19 and a 12-month high of $54.44.

Employers (NYSE:EIG - Get Free Report) last announced its earnings results on Wednesday, July 30th. The financial services provider reported $0.48 earnings per share for the quarter, missing analysts' consensus estimates of $0.94 by ($0.46). The business had revenue of $246.30 million for the quarter, compared to the consensus estimate of $217.17 million. Employers had a net margin of 11.37% and a return on equity of 7.56%. Employers's revenue for the quarter was up 13.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.10 EPS. As a group, analysts expect that Employers will post 3.63 earnings per share for the current fiscal year.

Insider Activity at Employers

In related news, EVP John M. Mutschink sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $49.12, for a total value of $98,240.00. Following the sale, the executive vice president owned 19,789 shares in the company, valued at approximately $972,035.68. This trade represents a 9.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Michael Pedraja acquired 3,050 shares of the business's stock in a transaction dated Tuesday, May 6th. The shares were acquired at an average cost of $48.59 per share, with a total value of $148,199.50. Following the transaction, the executive vice president owned 7,330 shares in the company, valued at approximately $356,164.70. This trade represents a 71.26% increase in their ownership of the stock. The disclosure for this purchase can be found here. 1.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Employers

A number of hedge funds have recently modified their holdings of EIG. Nuveen LLC bought a new position in Employers in the 1st quarter worth $9,814,000. Norges Bank purchased a new stake in shares of Employers during the 4th quarter valued at about $8,935,000. Raymond James Financial Inc. purchased a new stake in shares of Employers during the 4th quarter valued at about $7,451,000. JPMorgan Chase & Co. raised its position in Employers by 158.7% in the 4th quarter. JPMorgan Chase & Co. now owns 205,698 shares of the financial services provider's stock worth $10,538,000 after purchasing an additional 126,186 shares during the period. Finally, GAMMA Investing LLC raised its position in Employers by 5,792.9% in the 1st quarter. GAMMA Investing LLC now owns 108,724 shares of the financial services provider's stock worth $5,506,000 after purchasing an additional 106,879 shares during the period. Institutional investors own 80.49% of the company's stock.

About Employers

Employers Holdings, Inc, through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers' compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands.