Employers (NYSE:EIG) Hits New 12-Month Low Following Weak Earnings

Key Points

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Employers Holdings Inc (NYSE:EIG - Get Free Report) reached a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $42.03 and last traded at $41.96, with a volume of 26673 shares changing hands. The stock had previously closed at $45.62.

The financial services provider reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.94 by ($0.46). The company had revenue of $246.30 million during the quarter, compared to analysts' expectations of $217.17 million. Employers had a return on equity of 7.56% and a net margin of 11.37%. The company's quarterly revenue was up 13.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.10 EPS.

Employers Dividend Announcement

The business 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. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 3.3%. Employers's dividend payout ratio (DPR) is currently 31.22%.

Insiders Place Their Bets

In related news, EVP Michael Pedraja purchased 3,050 shares of the firm's stock in a transaction on Tuesday, May 6th. The stock was acquired at an average price of $48.59 per share, with a total value of $148,199.50. Following the completion of the acquisition, the executive vice president owned 7,330 shares in the company, valued at approximately $356,164.70. This represents a 71.26% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP John M. Mutschink sold 2,000 shares of the firm's stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $49.12, for a total transaction of $98,240.00. Following the completion of the transaction, the executive vice president directly owned 19,789 shares of the company's stock, valued at approximately $972,035.68. This represents a 9.18% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.40% of the company's stock.

Institutional Trading of Employers

Hedge funds and other institutional investors have recently made changes to their positions in the business. Aquatic Capital Management LLC acquired a new stake in Employers during the fourth quarter valued at $29,000. Lazard Asset Management LLC acquired a new stake in Employers during the fourth quarter valued at $48,000. GAMMA Investing LLC grew its position in Employers by 16.4% during the first quarter. GAMMA Investing LLC now owns 2,147 shares of the financial services provider's stock valued at $109,000 after buying an additional 302 shares during the period. Point72 Asia Singapore Pte. Ltd. acquired a new stake in Employers during the fourth quarter valued at $137,000. Finally, PNC Financial Services Group Inc. grew its position in Employers by 8.0% during the first quarter. PNC Financial Services Group Inc. now owns 2,895 shares of the financial services provider's stock valued at $147,000 after buying an additional 215 shares during the period. Institutional investors and hedge funds own 80.49% of the company's stock.

Employers Stock Down 5.5%

The company has a market cap of $937.39 million, a price-to-earnings ratio of 9.51 and a beta of 0.52. The company's 50-day moving average is $46.71 and its 200 day moving average is $48.36.

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.