Employers (NYSE:EIG) Stock Rating Lowered by Wall Street Zen

Key Points

• Employers Holdings was downgraded from a "hold" rating to a "sell" rating by analysts at Wall Street Zen.
• The company reported a missed earnings estimate of $0.48 per share, compared to analysts' expectations of $0.94, despite a revenue increase of 13.5% year-over-year.
• Insider activity showed that EVP John M. Mutschink sold 2,000 shares, representing a 9.18% decrease in his position, which suggests a bearish sentiment among executives.

Employers (NYSE:EIG - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Monday.

Employers Price Performance

Shares of EIG stock traded down $0.36 during midday trading on Monday, reaching $42.99. 168,760 shares of the company traded hands, compared to its average volume of 169,542. The firm's 50 day simple moving average is $44.68 and its two-hundred day simple moving average is $47.44. Employers has a 1-year low of $38.19 and a 1-year high of $54.44. The firm has a market cap of $1.01 billion, a PE ratio of 10.48 and a beta of 0.52.

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in Employers by 0.7% in the 1st quarter. Vanguard Group Inc. now owns 2,938,058 shares of the financial services provider's stock worth $148,783,000 after acquiring an additional 19,637 shares during the period. LSV Asset Management grew its stake in shares of Employers by 7.1% during the 1st quarter. LSV Asset Management now owns 1,067,976 shares of the financial services provider's stock valued at $54,082,000 after buying an additional 70,402 shares during the period. American Century Companies Inc. raised its position in Employers by 2.5% in the second quarter. American Century Companies Inc. now owns 627,307 shares of the financial services provider's stock valued at $29,596,000 after purchasing an additional 15,360 shares during the period. Northern Trust Corp raised its position in Employers by 0.7% in the fourth quarter. Northern Trust Corp now owns 506,140 shares of the financial services provider's stock valued at $25,930,000 after purchasing an additional 3,364 shares during the period. Finally, Boston Partners raised its position in Employers by 21.8% in the second quarter. Boston Partners now owns 355,041 shares of the financial services provider's stock valued at $16,252,000 after purchasing an additional 63,582 shares during the period. 80.49% of the stock is owned by hedge funds and other institutional investors.

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.