Allstate Corp Raises Holdings in Aflac Incorporated $AFL

Key Points

• Allstate Corp more than doubled its stake in Aflac during the fourth quarter, increasing holdings by 106.2% to 37,385 shares valued at about $4.12 million.
• Analysts have a mixed but cautious view on Aflac: the consensus rating is “Hold” with an average price target of $112.27, while several firms recently trimmed targets or adjusted ratings.
• Aflac reported quarterly EPS of $1.75, missing estimates, even as revenue came in slightly above expectations; the company also announced a $0.61 quarterly dividend payable June 1.

Allstate Corp raised its holdings in shares of Aflac Incorporated (NYSE:AFL - Free Report) by 106.2% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 37,385 shares of the financial services provider's stock after purchasing an additional 19,257 shares during the period. Allstate Corp's holdings in Aflac were worth $4,122,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC increased its position in Aflac by 64.4% in the fourth quarter. Brighton Jones LLC now owns 14,570 shares of the financial services provider's stock worth $1,507,000 after buying an additional 5,708 shares in the last quarter. Bison Wealth LLC increased its holdings in shares of Aflac by 4.3% in the fourth quarter. Bison Wealth LLC now owns 4,402 shares of the financial services provider's stock worth $455,000 after purchasing an additional 183 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Aflac in the second quarter worth about $280,000. Sei Investments Co. increased its holdings in shares of Aflac by 11.2% in the second quarter. Sei Investments Co. now owns 150,334 shares of the financial services provider's stock worth $15,854,000 after purchasing an additional 15,105 shares during the last quarter. Finally, Main Street Financial Solutions LLC increased its holdings in shares of Aflac by 1.6% in the second quarter. Main Street Financial Solutions LLC now owns 11,953 shares of the financial services provider's stock worth $1,261,000 after purchasing an additional 192 shares during the last quarter. 67.44% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on AFL shares. Wall Street Zen raised Aflac from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Wells Fargo & Company reduced their target price on Aflac from $116.00 to $111.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 5th. Mizuho set a $104.00 target price on Aflac in a report on Monday, May 4th. Piper Sandler reaffirmed an "overweight" rating and issued a $130.00 target price (up from $125.00) on shares of Aflac in a report on Tuesday. Finally, UBS Group reduced their price objective on Aflac from $116.00 to $114.00 and set a "neutral" rating on the stock in a research note on Thursday, April 9th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $112.27.

Insider Transactions at Aflac

In related news, EVP Steven Kent Beaver sold 5,508 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $117.81, for a total value of $648,897.48. Following the completion of the sale, the executive vice president owned 40,537 shares in the company, valued at approximately $4,775,663.97. The trade was a 11.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Arthur Reginald Collins sold 2,300 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $116.55, for a total transaction of $268,065.00. Following the completion of the transaction, the director directly owned 6,186 shares of the company's stock, valued at $720,978.30. This trade represents a 27.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 881,036 shares of company stock worth $99,703,131 over the last three months. Company insiders own 0.80% of the company's stock.

Aflac Stock Down 1.7%

Shares of NYSE:AFL opened at $114.81 on Thursday. Aflac Incorporated has a 1 year low of $96.95 and a 1 year high of $119.81. The business has a 50 day simple moving average of $112.93 and a two-hundred day simple moving average of $111.79. The firm has a market capitalization of $58.43 billion, a PE ratio of 13.03, a price-to-earnings-growth ratio of 2.05 and a beta of 0.62. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.11 and a quick ratio of 0.11.

Aflac (NYSE:AFL - Get Free Report) last announced its earnings results on Wednesday, April 29th. The financial services provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.80 by ($0.05). Aflac had a net margin of 25.60% and a return on equity of 13.88%. The business had revenue of $4.24 billion for the quarter, compared to analysts' expectations of $4.20 billion. During the same quarter last year, the firm earned $1.66 EPS. The firm's quarterly revenue was up 27.9% on a year-over-year basis. On average, equities analysts predict that Aflac Incorporated will post 7.08 EPS for the current year.

Aflac Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Wednesday, May 20th will be issued a $0.61 dividend. The ex-dividend date is Wednesday, May 20th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.1%. Aflac's payout ratio is presently 27.70%.

About Aflac

Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac's product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.

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