Employers (NYSE:EIG) Issues Earnings Results

Key Points

• EPS beat: Employers reported Q earnings of $0.53 per share, beating estimates by $0.04, while revenue of $207.6M missed expectations and was up 2.5% year-over-year with EPS down from $0.87 a year ago.
• Dividend 3.0% yield: The company paid a $0.32 quarterly dividend (annualized $1.28) for a 3.0% yield, but the dividend payout ratio is an extremely high 387.88%.
• Insider activity and valuation: Shares fell about 1% to $42.90 after the report; EVP Michael Pedraja bought 2,000 shares while another insider sold 5,000, and the stock trades at a high P/E of 130.00.

Employers (NYSE:EIG - Get Free Report) posted its earnings results on Wednesday. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.49 by $0.04, FiscalAI reports. The company had revenue of $207.60 million for 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 firm's quarterly revenue was up 2.5% compared to the same quarter last year. During the same period last year, the business posted $0.87 earnings per share.

Employers Trading Down 1.0%

EIG traded down $0.43 during trading on Wednesday, reaching $42.90. The company had a trading volume of 191,082 shares, compared to its average volume of 270,332. The firm's 50-day simple moving average is $41.11 and its 200 day simple moving average is $41.62. 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 has a 12-month low of $35.73 and a 12-month 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.

Employers Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Wednesday, March 4th were paid a $0.32 dividend. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $1.28 dividend on an annualized basis and a yield of 3.0%. Employers's dividend payout ratio (DPR) is currently 387.88%.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Zacks Research raised Employers from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 24th. Wall Street Zen lowered Employers from a "hold" rating to a "sell" rating in a report on Saturday, March 7th. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy".

Insider Buying and Selling

In related news, EVP Michael Pedraja purchased 2,000 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The shares were purchased at an average price of $39.73 per share, with a total value of $79,460.00. Following the purchase, the executive vice president owned 19,830 shares of the company's stock, valued at $787,845.90. This trade represents a 11.22% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Ann Marie Smith sold 5,000 shares of Employers stock in a transaction dated 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 in the company, valued at $341,980.16. This represents a 36.49% decrease in their position. The SEC filing for this sale provides additional information. 1.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Employers

A number of institutional investors have recently bought and sold shares of the stock. Osaic Holdings Inc. boosted its position in 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. Tower Research Capital LLC TRC boosted its position in Employers by 179.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,276 shares of the financial services provider's stock worth $107,000 after acquiring an additional 1,462 shares during the period. BNP Paribas Financial Markets boosted its position in Employers by 26.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,718 shares of the financial services provider's stock worth $128,000 after acquiring an additional 575 shares during the period. Royal Bank of Canada boosted its position in Employers by 33.3% during the 4th quarter. Royal Bank of Canada now owns 3,186 shares of the financial services provider's stock worth $137,000 after acquiring an additional 796 shares during the period. Finally, Virtus Advisers LLC acquired a new stake in Employers during the 3rd quarter worth about $254,000. Hedge funds and other institutional investors own 80.49% of the company's stock.

Employers Company Profile

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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