Employers Holdings Inc (NYSE:EIG) to Issue Quarterly Dividend of $0.34

Key Points

• Employers Holdings declared a $0.34 quarterly dividend (annualized $1.28), a 6.3% increase from $0.32, with an ex-dividend and record date of May 13 and payment on May 27, yielding about 3.4%.
• Q1 results: EPS beat but revenue lagged — the company reported $0.53 EPS vs. $0.51 expected and $207.6M revenue vs. $211.97M expected; analysts forecast full-year EPS in the ~$2.17–$2.40 range, keeping the dividend coverage modest (current payout ~36.6%).
• Insider and institutional moves: an insider (Ann Marie Smith) sold 5,000 shares while EVP Michael Pedraja bought 2,000, and institutional ownership is high (~80.5%) with firms like Goldman Sachs materially increasing positions.

Employers Holdings Inc (NYSE:EIG - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Stockholders of record on Wednesday, May 13th will be paid a dividend of 0.34 per share by the financial services provider on Wednesday, May 27th. This represents a c) dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Wednesday, May 13th. This is a 6.3% increase from Employers's previous quarterly dividend of $0.32.

Employers has increased its dividend by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 4 years. Employers has a dividend payout ratio of 36.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect Employers to earn $2.40 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 53.3%.

Employers Trading Down 6.7%

NYSE:EIG opened at $39.91 on Thursday. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.40 and a quick ratio of 0.40. The firm has a 50-day moving average of $41.11 and a 200-day moving average of $41.62. The company has a market cap of $743.54 million, a PE ratio of 120.64 and a beta of 0.48. Employers has a one year low of $35.73 and a one year high of $50.37.

Employers (NYSE:EIG - Get Free Report) last posted its earnings results on Wednesday, April 29th. The financial services provider reported $0.53 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.02. The company had revenue of $207.60 million for the quarter, compared to analyst estimates of $211.97 million. Employers had a net margin of 1.26% and a return on equity of 2.10%. The firm's revenue was up 2.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.87 EPS. As a group, equities research analysts expect that Employers will post 2.17 EPS for the current fiscal year.

Insider Transactions at Employers

In other news, insider Ann Marie Smith sold 5,000 shares of the company's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $39.29, for a total value of $196,450.00. Following the completion of the transaction, the insider directly owned 8,704 shares of the company's stock, valued at $341,980.16. This represents a 36.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Michael Pedraja purchased 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were acquired at an average cost of $39.73 per share, with a total value of $79,460.00. Following the completion of the transaction, the executive vice president directly owned 19,830 shares of the company's stock, valued at $787,845.90. The trade was a 11.22% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On Employers

A number of hedge funds have recently made changes to their positions in EIG. Goldman Sachs Group Inc. boosted its holdings in shares of Employers by 126.2% in the 4th quarter. Goldman Sachs Group Inc. now owns 329,479 shares of the financial services provider's stock worth $14,224,000 after buying an additional 183,828 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of Employers by 69.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 388,769 shares of the financial services provider's stock worth $16,783,000 after purchasing an additional 159,956 shares during the period. Qube Research & Technologies Ltd raised its stake in shares of Employers by 93.1% in the second quarter. Qube Research & Technologies Ltd now owns 264,078 shares of the financial services provider's stock valued at $12,459,000 after buying an additional 127,330 shares during the period. Bridgeway Capital Management LLC raised its stake in Employers by 326.5% in the 3rd quarter. Bridgeway Capital Management LLC now owns 141,611 shares of the financial services provider's stock valued at $6,016,000 after acquiring an additional 108,411 shares during the period. Finally, UBS Group AG lifted its stake in shares of Employers by 125.0% during the 3rd quarter. UBS Group AG now owns 181,341 shares of the financial services provider's stock valued at $7,703,000 after buying an additional 100,751 shares in the last quarter. 80.49% of the stock is currently owned by institutional investors.

About Employers

Employers Holdings, Inc NYSE: EIG is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers' compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries.

The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors.

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