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

Key Points

• Shares crossed above the 200-day moving average—EIG moved above its 200‑day MA of $41.60, trading as high as $43.08 and last at $42.27 on volume of 144,470 shares.
• Mixed fundamentals: Q4 EPS beat ($0.66 vs. $0.41) despite a 21.3% revenue decline year-over-year, with low profitability (net margin 1.26%, ROE 2.10%) and a high PE of 128.09; the stock pays a $0.32 quarterly dividend (3.0% yield) but has an elevated payout ratio of 387.88%.
• Analyst and ownership landscape: coverage is mixed but the MarketBeat consensus is "Buy" (one Strong Buy, one Hold), insiders recently both bought and sold shares, and institutional investors own about 80.49% of the stock.

Shares of Employers Holdings Inc (NYSE:EIG - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $41.60 and traded as high as $43.08. Employers shares last traded at $42.27, with a volume of 144,470 shares trading hands.

Analysts Set New Price Targets

EIG has been the topic of several recent research reports. Wall Street Zen downgraded shares of Employers from a "hold" rating to a "sell" rating in a report on Saturday, March 7th. Zacks Research raised shares of Employers from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 24th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Employers in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy".

Employers Price Performance

The stock's fifty day moving average is $41.17 and its 200-day moving average is $41.60. The stock has a market capitalization of $787.49 million, a PE ratio of 128.09 and a beta of 0.48. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.40 and a quick ratio of 0.40.

Employers (NYSE:EIG - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The financial services provider reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.41 by $0.25. The firm had revenue of $170.50 million for the quarter, compared to the consensus estimate of $217.35 million. Employers had a net margin of 1.26% and a return on equity of 2.10%. The firm's quarterly revenue was down 21.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.15 earnings per share. As a group, equities analysts predict that Employers Holdings Inc will post 2.17 earnings per share for the current fiscal year.

Employers Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 18th. Shareholders of record on Wednesday, March 4th were given a dividend of $0.32 per share. The ex-dividend date 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 is currently 387.88%.

Insiders Place Their Bets

In related news, EVP Michael Pedraja acquired 2,000 shares of Employers stock in a transaction on Tuesday, February 24th. The stock was bought at an average cost of $39.73 per share, for a total transaction of $79,460.00. Following the completion of the transaction, the executive vice president 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 acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Christina M. Ozuna sold 4,500 shares of the company's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $39.88, for a total transaction of $179,460.00. Following the transaction, the insider owned 15,008 shares of the company's stock, valued at $598,519.04. This represents a 23.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Employers

Hedge funds and other institutional investors have recently modified their holdings of the business. Azarias Capital Management L.P. purchased a new position in shares of Employers in the fourth quarter worth about $2,983,000. Y Intercept Hong Kong Ltd purchased a new position in shares of Employers in the third quarter worth about $1,187,000. Exchange Traded Concepts LLC lifted its stake in shares of Employers by 39.7% in the third quarter. Exchange Traded Concepts LLC now owns 66,116 shares of the financial services provider's stock worth $2,809,000 after buying an additional 18,793 shares in the last quarter. Assenagon Asset Management S.A. purchased a new position in shares of Employers in the third quarter worth about $908,000. Finally, Squarepoint Ops LLC lifted its stake in shares of Employers by 222.5% in the second quarter. Squarepoint Ops LLC now owns 17,762 shares of the financial services provider's stock worth $838,000 after buying an additional 12,255 shares in the last quarter. 80.49% of the stock is owned by hedge funds and other 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.

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