Employers (NYSE:EIG) Posts Earnings Results

Key Points

• Earnings beat: Employers reported Q EPS of $0.53, beating estimates by $0.02, while revenue of $207.6 million missed forecasts and EPS declined from $0.87 a year earlier.
• Dividend concerns: the company paid a $0.32 quarterly dividend (annualized $1.28) for a 3.0% yield, but the payout ratio is an elevated 387.88%, suggesting the dividend may be unsustainably high.
• Mixed signals on sentiment and valuation: an EVP bought 2,000 shares while another insider sold 5,000, the stock trades at a high P/E of 130 with a market cap of about $799 million, and analyst ratings are mixed though the consensus is "Buy."

Employers (NYSE:EIG - Get Free Report) announced its quarterly earnings results on Wednesday. The financial services provider reported $0.53 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.02, FiscalAI reports. The company had revenue of $207.60 million during the quarter, compared to analysts' expectations of $211.97 million. Employers had a return on equity of 2.10% and a net margin of 1.26%.The business's quarterly revenue was up 2.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.87 earnings per share.

Employers Stock Performance

NYSE:EIG opened at $42.90 on Thursday. The firm's 50-day moving average is $41.11 and its 200-day moving average is $41.62. Employers has a 52-week low of $35.73 and a 52-week high of $50.37. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.40 and a current ratio of 0.40. The company has a market cap of $799.21 million, a price-to-earnings ratio of 130.00 and a beta of 0.48.

Employers Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were issued a dividend of $0.32 per share. The ex-dividend date was Wednesday, March 4th. This represents a $1.28 annualized dividend and a dividend yield of 3.0%. Employers's payout ratio is presently 387.88%.

Analyst Ratings Changes

A number of brokerages recently weighed in on EIG. Zacks Research raised Employers from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. Wall Street Zen cut Employers from a "hold" rating to a "sell" rating in a research report on Saturday, March 7th. One equities research analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Employers has an average rating of "Buy".

Insider Activity at Employers

In other news, EVP Michael Pedraja purchased 2,000 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were purchased at an average cost of $39.73 per share, for a total transaction of $79,460.00. Following the completion of the purchase, the executive vice president directly owned 19,830 shares of the company's stock, valued at approximately $787,845.90. The trade was a 11.22% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Ann Marie Smith sold 5,000 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were 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 approximately $341,980.16. This trade represents a 36.49% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.50% of the stock is owned by corporate insiders.

Institutional Trading of Employers

A number of institutional investors and hedge funds have recently modified their holdings of the company. Aquatic Capital Management LLC lifted its position in Employers by 1.2% in the third quarter. Aquatic Capital Management LLC now owns 22,623 shares of the financial services provider's stock worth $961,000 after purchasing an additional 277 shares during the period. Deutsche Bank AG lifted its holdings in shares of Employers by 1.3% during the 4th quarter. Deutsche Bank AG now owns 24,084 shares of the financial services provider's stock worth $1,040,000 after acquiring an additional 302 shares during the period. Osaic Holdings Inc. lifted its holdings in shares of Employers by 133.5% during the 2nd quarter. Osaic Holdings Inc. now owns 635 shares of the financial services provider's stock worth $30,000 after acquiring an additional 363 shares during the period. MML Investors Services LLC boosted its position in shares of Employers by 5.5% during the 4th quarter. MML Investors Services LLC now owns 9,418 shares of the financial services provider's stock valued at $407,000 after acquiring an additional 487 shares in the last quarter. Finally, Cetera Investment Advisers boosted its position in shares of Employers by 6.5% during the 4th quarter. Cetera Investment Advisers now owns 9,205 shares of the financial services provider's stock valued at $397,000 after acquiring an additional 558 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.