Baird Financial Group Inc. Buys 37,886 Shares of Aflac Incorporated $AFL

Key Points

• Baird Financial Group increased its Aflac stake by 12.5%, purchasing 37,886 additional shares to reach 341,431 shares valued at approximately $40 million. Institutional investors collectively own 67.44% of Aflac.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $116.62; targets range from $103 to $138.
• Aflac’s latest results were mixed: quarterly revenue of $4.22 billion exceeded estimates, while EPS of $1.75 slightly missed forecasts and declined year over year. The company maintained its $0.61 quarterly dividend, equivalent to a 2.1% yield.

Baird Financial Group Inc. raised its stake in Aflac Incorporated (NYSE:AFL - Free Report) by 12.5% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 341,431 shares of the financial services provider's stock after buying an additional 37,886 shares during the period. Baird Financial Group Inc. owned 0.07% of Aflac worth $40,033,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of AFL. California State Teachers Retirement System boosted its stake in shares of Aflac by 11,094.0% during the second quarter. California State Teachers Retirement System now owns 86,458,157 shares of the financial services provider's stock valued at $10,137,219,000 after purchasing an additional 85,685,796 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Aflac during the second quarter worth about $4,093,787,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Aflac by 27.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,201,217 shares of the financial services provider's stock valued at $609,843,000 after buying an additional 1,132,091 shares during the period. Dimensional Fund Advisors LP raised its holdings in Aflac by 1.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,550,855 shares of the financial services provider's stock valued at $499,216,000 after buying an additional 67,650 shares during the last quarter. Finally, Norges Bank acquired a new stake in Aflac during the 4th quarter worth approximately $420,078,000. Institutional investors own 67.44% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AFL. Mizuho set a $116.00 target price on shares of Aflac in a report on Monday, August 10th. Wall Street Zen lowered shares of Aflac from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Piper Sandler reissued an "overweight" rating and issued a $138.00 price objective (up from $130.00) on shares of Aflac in a research note on Monday, August 10th. Morgan Stanley raised their target price on Aflac from $120.00 to $125.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 21st. Finally, Wolfe Research assumed coverage on Aflac in a report on Wednesday, August 19th. They set an "underperform" rating and a $103.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $116.62.

Insider Activity

In other news, major shareholder Post Holdings Co. Ltd. Japan sold 53,000 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $117.74, for a total transaction of $6,240,220.00. Following the completion of the sale, the insider owned 51,014,735 shares of the company's stock, valued at $6,006,474,898.90. This trade represents a 0.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 415,215 shares of company stock worth $48,860,736. 0.80% of the stock is currently owned by corporate insiders.

Key Stories Impacting Aflac

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac said its more than 30-year commitment to childhood cancer and sickle cell disease support has surpassed $200 million in contributions. The milestone strengthens the company’s brand and corporate reputation, although it is unlikely to have a material near-term effect on earnings. Aflac commemorates National Childhood Cancer and Sickle Cell Disease Awareness Month
• Neutral Sentiment: Aflac’s latest quarterly results were mixed: revenue of $4.22 billion exceeded estimates, but earnings per share of $1.75 narrowly missed forecasts and declined from $1.78 a year earlier. The company continues to offer a $0.61 quarterly dividend, or $2.44 annually, with a yield of roughly 2.1%.
• Negative Sentiment: Japan Post Holdings, a major Aflac shareholder, disclosed additional sales of 15,000 shares for approximately $1.76 million after selling 20,000 shares for about $2.37 million in an earlier transaction. The sales were conducted under a pre-arranged Rule 10b5-1 plan and reduced its stake by only 0.03%–0.04%, limiting the fundamental significance but potentially weighing on sentiment. Major AFLAC Stakeholder Quietly Executes Multi-Million Dollar Move
• Negative Sentiment: An analysis argued that Aflac remains a consistent compounder but is fully valued, potentially limiting upside from current levels. Analyst views are mixed, with a consensus “Hold” rating and an average price target near $116.62. Aflac: Scrooge Keeps Compounding, But The Stock Is Fully Valued

Aflac Trading Down 0.3%

AFL opened at $114.79 on Thursday. Aflac Incorporated has a twelve month low of $105.43 and a twelve month high of $130.22. The company has a fifty day moving average of $121.32 and a 200-day moving average of $116.32. The stock has a market cap of $57.55 billion, a PE ratio of 12.30, a price-to-earnings-growth ratio of 1.86 and a beta of 0.59. The company has a quick ratio of 0.12, a current ratio of 0.12 and a debt-to-equity ratio of 0.29.

Aflac (NYSE:AFL - Get Free Report) last released its earnings results on Thursday, August 6th. The financial services provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.76 by ($0.01). Aflac had a net margin of 26.91% and a return on equity of 13.27%. The firm had revenue of $4.22 billion during the quarter, compared to analyst estimates of $4.11 billion. During the same quarter in the previous year, the firm earned $1.78 EPS. Aflac's quarterly revenue was down 1.0% on a year-over-year basis. On average, sell-side analysts predict that Aflac Incorporated will post 7.04 EPS for the current year.

Aflac Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Wednesday, August 19th were paid a $0.61 dividend. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $2.44 annualized dividend and a yield of 2.1%. Aflac's payout ratio is 26.15%.

Aflac Company Profile

Aflac Incorporated is an insurance company that provides supplemental health and life insurance products. Its coverage is designed to help policyholders manage expenses that may not be fully covered by major medical insurance, including costs associated with accidents, illness, hospitalization, disability and critical illness.

Through its U.S. operations, Aflac markets policies to individuals, businesses and employees through workplace benefit programs, independent agents and brokers. The company is also a major provider of supplemental insurance in Japan, where it offers products focused primarily on cancer, medical and income-support coverage.

Founded in 1955 in Columbus, Georgia, as American Family Life Assurance Company, the business adopted the name Aflac in 1990.

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