Arrowstreet Capital Limited Partnership Raises Stock Holdings in Employers Holdings Inc $EIG

Key Points

• Arrowstreet Capital increased its Employers Holdings stake by 27.6% in the first quarter, adding 65,100 shares to own 300,567 shares valued at approximately $12.4 million. Institutional investors collectively hold 80.49% of EIG’s outstanding stock.
• Employers reported quarterly earnings of $0.70 per share, beating the $0.57 consensus estimate, while revenue of $220.2 million also exceeded expectations. However, revenue declined 10.6% year over year and the combined ratio rose to 105.8%, indicating underwriting losses.
• The company declared a $0.34 quarterly dividend, equivalent to a 2.7% annualized yield, payable August 26. Analysts maintain a consensus “Hold” rating with a $59 price target, while Truist upgraded the stock to “Buy.”

Arrowstreet Capital Limited Partnership boosted its stake in shares of Employers Holdings Inc (NYSE:EIG - Free Report) by 27.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 300,567 shares of the financial services provider's stock after purchasing an additional 65,100 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 1.65% of Employers worth $12,365,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in EIG. Azarias Capital Management L.P. acquired a new stake in shares of Employers during the fourth quarter worth approximately $2,983,000. Legato Capital Management LLC raised its holdings in Employers by 230.7% in the fourth quarter. Legato Capital Management LLC now owns 34,479 shares of the financial services provider's stock valued at $1,488,000 after acquiring an additional 24,053 shares in the last quarter. Intech Investment Management LLC raised its holdings in Employers by 719.3% in the fourth quarter. Intech Investment Management LLC now owns 95,115 shares of the financial services provider's stock valued at $4,106,000 after acquiring an additional 83,506 shares in the last quarter. Teacher Retirement System of Texas boosted its stake in Employers by 24.4% during the 4th quarter. Teacher Retirement System of Texas now owns 139,159 shares of the financial services provider's stock valued at $6,007,000 after acquiring an additional 27,299 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new position in Employers during the 4th quarter valued at $1,606,000. Hedge funds and other institutional investors own 80.49% of the company's stock.

Employers Stock Down 2.2%

Shares of Employers stock opened at $50.47 on Friday. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.44 and a quick ratio of 0.40. Employers Holdings Inc has a 1-year low of $35.73 and a 1-year high of $52.59. The business's fifty day moving average price is $48.14 and its two-hundred day moving average price is $44.29. The company has a market capitalization of $920.54 million, a P/E ratio of 73.14 and a beta of 0.46.

Employers (NYSE:EIG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.13. The business had revenue of $220.20 million during the quarter, compared to the consensus estimate of $203.51 million. Employers had a net margin of 0.91% and a return on equity of 1.30%. The company's quarterly revenue was down 10.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.48 earnings per share. As a group, research analysts forecast that Employers Holdings Inc will post 2.15 EPS for the current year.

Employers Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Investors of record on Wednesday, August 12th will be paid a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Wednesday, August 12th. Employers's dividend payout ratio (DPR) is currently 197.10%.

Trending Headlines about Employers

Here are the key news stories impacting Employers this week:

• Positive Sentiment: Truist raises target and upgrades shares: Truist Financial increased its price target from $49 to $59 and upgraded Employers to “Buy,” implying roughly 17% upside from the referenced price. The action signals improved confidence in the insurer’s earnings outlook. Benzinga analyst action
• Positive Sentiment: Second-quarter earnings exceeded expectations: Employers reported earnings of $0.70 per share, ahead of the $0.57 consensus estimate, while revenue of $220.2 million also surpassed expectations. EPS increased from $0.48 in the prior-year quarter, providing a favorable catalyst despite lower revenue year over year. Q2 earnings results
• Positive Sentiment: Capital returns continue: The company declared a quarterly dividend of $0.34 per share, payable August 26 to shareholders of record August 12. Employers also repurchased approximately 652,000 shares during the quarter and had $113 million remaining under its buyback authorization. Dividend announcement
• Neutral Sentiment: California strategy may support growth: Employers is expanding loss-sensitive insurance offerings as California’s 6.6% advisory rate takes effect September 1. The initiative could improve competitiveness and premium growth, but execution and the ultimate effect on underwriting results remain uncertain. California offerings expansion
• Negative Sentiment: Insurance volume and underwriting metrics weakened: Net premiums earned fell 12% year over year to $174.1 million, gross written premiums declined to $163.4 million from $203.3 million, and policies in force decreased. The combined ratio was 105.8%, indicating underwriting losses and limiting the benefit of the earnings beat.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on EIG shares. Zacks Research lowered shares of Employers from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 1st. Truist Financial lifted their price target on Employers from $49.00 to $59.00 and gave the stock a "buy" rating in a research note on Friday. Weiss Ratings raised Employers from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, June 26th. Finally, Wall Street Zen upgraded Employers from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $59.00.

Employers Profile

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.

Want to see what other hedge funds are holding EIG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Employers Holdings Inc (NYSE:EIG - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.