Employers (NYSE:EIG) Stock Price Crosses Above 200-Day Moving Average - Here's What Happened

Key Points

• Employers Holdings (EIG) crossed above its 200-day moving average — the 200‑day MA is $41.61, the stock traded as high as $42.62 and last traded at $41.80 on volume of 313,092 shares.
• The company reported $0.66 EPS for the quarter, beating estimates by $0.25, but revenue fell 21.3% year‑over‑year to $170.5M and net margin remained low at 1.26%.
• Dividend yield is 3.1% (quarterly $0.32/$1.28 annualized) but the payout ratio is an elevated 387.88%, which may raise sustainability concerns for income investors.

Employers Holdings Inc (NYSE:EIG - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $41.61 and traded as high as $42.62. Employers shares last traded at $41.80, with a volume of 313,092 shares.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Employers from a "hold" rating to a "sell" rating in a research report on Saturday, March 7th. Zacks Research upgraded shares of Employers from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 24th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Employers in a research report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy".

Employers Stock Down 2.0%

The business's fifty day moving average price is $41.53 and its 200 day moving average price is $41.61. The firm has a market capitalization of $814.26 million, a price-to-earnings ratio of 126.67 and a beta of 0.48. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.02.

Employers (NYSE:EIG - Get Free Report) last announced its earnings results on Thursday, February 19th. The financial services provider reported $0.66 EPS for the quarter, beating analysts' consensus estimates of $0.41 by $0.25. The business had revenue of $170.50 million for the quarter, compared to analysts' expectations of $217.35 million. Employers had a net margin of 1.26% and a return on equity of 2.10%. The company's quarterly revenue was down 21.3% on a year-over-year basis. During the same period in the previous year, the company posted $1.15 EPS. On average, equities analysts expect that Employers Holdings Inc will post 3.63 EPS for the current year.

Employers Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Wednesday, March 4th. Employers's payout ratio is presently 387.88%.

Insider Activity

In other Employers news, EVP Michael Pedraja bought 2,000 shares of the business's stock in a transaction dated Tuesday, February 24th. The shares were acquired at an average cost of $39.73 per share, with a total value of $79,460.00. Following the acquisition, the executive vice president directly owned 19,830 shares of the company's stock, valued at $787,845.90. The trade was a 11.22% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Ann Marie Smith sold 5,000 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $39.29, for a total transaction 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 ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Employers

Several institutional investors have recently bought and sold shares of the company. Jacobs Levy Equity Management Inc. increased its stake in Employers by 69.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 388,769 shares of the financial services provider's stock valued at $16,783,000 after buying an additional 159,956 shares during the period. Goldman Sachs Group Inc. increased its stake in Employers by 126.2% in the 4th quarter. Goldman Sachs Group Inc. now owns 329,479 shares of the financial services provider's stock valued at $14,224,000 after buying an additional 183,828 shares during the period. Qube Research & Technologies Ltd increased its stake in Employers by 93.1% in the 2nd quarter. Qube Research & Technologies Ltd now owns 264,078 shares of the financial services provider's stock valued at $12,459,000 after buying an additional 127,330 shares during the period. Two Sigma Investments LP increased its stake in Employers by 62.4% in the 3rd quarter. Two Sigma Investments LP now owns 181,591 shares of the financial services provider's stock valued at $7,714,000 after buying an additional 69,741 shares during the period. Finally, UBS Group AG increased its stake in Employers by 125.0% in the 3rd quarter. UBS Group AG now owns 181,341 shares of the financial services provider's stock valued at $7,703,000 after buying an additional 100,751 shares during the period. 80.49% of the stock is owned by institutional investors and hedge funds.

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.

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