Employers (NYSE:EIG) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Employers (NYSE:EIG) has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, potentially impacting investor sentiment.
• The company reported a quarterly earnings per share (EPS) of $0.48, missing estimates by $0.46, although revenue increased by 13.5% year-over-year to $246.30 million.
• Recent insider trading has been noted, with EVP John M. Mutschink selling 2,000 shares, indicating a 9.18% decrease in his position, while institutional investors own approximately 80.49% of the stock.

Wall Street Zen lowered shares of Employers (NYSE:EIG - Free Report) from a hold rating to a sell rating in a report released on Saturday.

Employers Stock Performance

EIG stock traded up $0.10 during trading on Friday, reaching $41.30. 181,472 shares of the company traded hands, compared to its average volume of 168,357. Employers has a 12 month low of $38.19 and a 12 month high of $54.44. The business has a 50 day simple moving average of $45.92 and a 200 day simple moving average of $48.05. The company has a market capitalization of $971.00 million, a price-to-earnings ratio of 10.07 and a beta of 0.52.

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

Employers Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Shareholders of record on Wednesday, August 13th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, August 13th. Employers's dividend payout ratio (DPR) is currently 31.22%.

Insiders Place Their Bets

In other Employers news, EVP John M. Mutschink sold 2,000 shares of the firm's stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $49.12, for a total value of $98,240.00. Following the completion of the sale, the executive vice president owned 19,789 shares of the company's stock, 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 legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Employers

Institutional investors have recently added to or reduced their stakes in the business. Nuveen LLC acquired a new stake in shares of Employers during the first quarter worth about $9,814,000. Raymond James Financial Inc. purchased a new position in Employers during the fourth quarter valued at approximately $7,451,000. JPMorgan Chase & Co. raised its position in Employers by 158.7% during the fourth quarter. JPMorgan Chase & Co. now owns 205,698 shares of the financial services provider's stock valued at $10,538,000 after acquiring an additional 126,186 shares in the last quarter. GAMMA Investing LLC raised its position in Employers by 5,792.9% during the first quarter. GAMMA Investing LLC now owns 108,724 shares of the financial services provider's stock valued at $5,506,000 after acquiring an additional 106,879 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Employers during the fourth quarter valued at approximately $4,688,000. Institutional investors and hedge funds own 80.49% of the company's stock.

Employers Company Profile

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.