Employers (NYSE:EIG) Hits New 12-Month Low on Disappointing Earnings

Key Points

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Employers Holdings Inc (NYSE:EIG - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $42.03 and last traded at $41.96, with a volume of 26673 shares traded. The stock had previously closed at $45.62.

The financial services provider reported $0.48 earnings per share 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 firm had revenue of $246.30 million during the quarter, compared to analysts' expectations of $217.17 million. During the same quarter in the previous year, the business posted $1.10 EPS. The company's revenue for the quarter was up 13.5% on a year-over-year basis.

Employers Dividend Announcement

The firm also recently disclosed 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 is Wednesday, August 13th. This represents a $1.28 dividend on an annualized basis and a yield of 3.2%. Employers's dividend payout ratio is presently 31.22%.

Insider Buying and Selling

In other news, EVP John M. Mutschink sold 2,000 shares of the business's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 19,789 shares in the company, valued at $972,035.68. The trade was a 9.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Michael Pedraja purchased 3,050 shares of the business's stock in a transaction that occurred on Tuesday, May 6th. The stock was bought at an average cost of $48.59 per share, with a total value of $148,199.50. Following the acquisition, the executive vice president owned 7,330 shares of the company's stock, valued at approximately $356,164.70. The trade was a 71.26% increase in their position. The disclosure for this purchase can be found here. Company insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. raised its stake in Employers by 158.7% during the fourth quarter. JPMorgan Chase & Co. now owns 205,698 shares of the financial services provider's stock worth $10,538,000 after purchasing an additional 126,186 shares during the period. Norges Bank acquired a new position in Employers in the fourth quarter valued at approximately $8,935,000. Arrowstreet Capital Limited Partnership grew its position in Employers by 4.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 225,466 shares of the financial services provider's stock worth $11,551,000 after acquiring an additional 8,748 shares during the period. ExodusPoint Capital Management LP acquired a new stake in Employers during the fourth quarter worth $994,000. Finally, Wells Fargo & Company MN increased its stake in Employers by 27.8% during the fourth quarter. Wells Fargo & Company MN now owns 14,513 shares of the financial services provider's stock worth $743,000 after acquiring an additional 3,159 shares during the last quarter. Institutional investors and hedge funds own 80.49% of the company's stock.

Employers Stock Up 1.1%

The stock has a 50-day simple moving average of $46.52 and a 200 day simple moving average of $48.27. The company has a market cap of $951.42 million, a PE ratio of 9.65 and a beta of 0.52.

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.