Allstate Corp Increases Stake in Aflac Incorporated $AFL

Key Points

• Allstate Corp increased its stake in Aflac by 17.3%, owning 18,806 shares valued at approximately $2.09 million.
• Aflac reported earnings of $1.78 per share, exceeding analyst expectations but showing a 19% decline in revenue compared to the previous year.
• The company initiated a share buyback plan to purchase up to 100 million shares, signaling management's belief that its stock is undervalued.

Allstate Corp lifted its holdings in shares of Aflac Incorporated (NYSE:AFL - Free Report) by 17.3% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 18,806 shares of the financial services provider's stock after purchasing an additional 2,770 shares during the period. Allstate Corp's holdings in Aflac were worth $2,091,000 as of its most recent filing with the SEC.

Other hedge funds have also added to or reduced their stakes in the company. Golden State Wealth Management LLC boosted its holdings in Aflac by 121.9% during the 1st quarter. Golden State Wealth Management LLC now owns 304 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 167 shares during the period. Dynamic Advisor Solutions LLC bought a new stake in Aflac in the 1st quarter worth $206,000. GAMMA Investing LLC increased its position in shares of Aflac by 11.6% in the first quarter. GAMMA Investing LLC now owns 13,527 shares of the financial services provider's stock valued at $1,504,000 after acquiring an additional 1,411 shares during the period. Garde Capital Inc. purchased a new position in shares of Aflac in the first quarter valued at about $36,000. Finally, Sowell Financial Services LLC bought a new position in shares of Aflac during the first quarter valued at about $865,000. 67.44% of the stock is owned by institutional investors.

Aflac Stock Performance

Shares of Aflac stock opened at $108.3520 on Friday. Aflac Incorporated has a 12 month low of $96.95 and a 12 month high of $115.50. The firm has a market capitalization of $57.95 billion, a P/E ratio of 24.57, a P/E/G ratio of 3.04 and a beta of 0.83. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.33. The business has a fifty day simple moving average of $103.08 and a two-hundred day simple moving average of $104.85.

Aflac (NYSE:AFL - Get Free Report) last released its earnings results on Tuesday, August 5th. The financial services provider reported $1.78 earnings per share for the quarter, topping analysts' consensus estimates of $1.71 by $0.07. Aflac had a net margin of 15.32% and a return on equity of 15.08%. The firm had revenue of $4.16 billion for the quarter, compared to the consensus estimate of $4.30 billion. During the same period in the prior year, the firm earned $1.83 EPS. The company's revenue was down 19.0% compared to the same quarter last year. On average, equities analysts forecast that Aflac Incorporated will post 6.88 earnings per share for the current fiscal year.

Aflac declared that its Board of Directors has initiated a share buyback plan on Tuesday, August 12th that authorizes the company to buyback 100,000,000 shares. This buyback authorization authorizes the financial services provider to reacquire shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its shares are undervalued.

Aflac Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Wednesday, August 20th will be issued a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Wednesday, August 20th. Aflac's dividend payout ratio (DPR) is presently 52.61%.

Insider Activity

In other news, Director Joseph L. Moskowitz sold 1,000 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $102.57, for a total value of $102,570.00. Following the sale, the director directly owned 25,105 shares of the company's stock, valued at $2,575,019.85. The trade was a 3.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.90% of the company's stock.

Wall Street Analysts Forecast Growth

AFL has been the topic of a number of recent analyst reports. Wells Fargo & Company lifted their price objective on Aflac from $105.00 to $107.00 and gave the stock an "equal weight" rating in a research report on Monday, August 11th. Keefe, Bruyette & Woods raised their price target on Aflac from $106.00 to $108.00 and gave the stock a "market perform" rating in a research note on Monday, August 11th. UBS Group cut their price target on shares of Aflac from $114.00 to $111.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Barclays set a $98.00 price objective on shares of Aflac and gave the stock an "underweight" rating in a report on Monday, July 7th. Finally, Evercore ISI reaffirmed an "underperform" rating and set a $106.00 target price (up previously from $105.00) on shares of Aflac in a research note on Thursday, August 14th. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $109.15.

Aflac Profile

Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. The company operates through Aflac Japan and Aflac U.S. segments. The Aflac Japan segment offers cancer, medical, nursing care, work leave, GIFT, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products in Japan.

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