BlackRock Inc. Makes New $4.09 Billion Investment in Aflac Incorporated $AFL

Key Points

• BlackRock acquired 34.9 million Aflac shares during the second quarter, valued at approximately $4.09 billion and representing about 6.86% of the company. Institutional investors collectively own 67.44% of Aflac.
• Aflac reported quarterly EPS of $1.75, slightly below the $1.76 consensus estimate, while revenue of $4.22 billion exceeded expectations. Analysts maintain a consensus “Hold” rating with an average price target of $117.58.
• The company declared a quarterly dividend of $0.61 per share, equivalent to $2.44 annually and a 2.0% yield.

BlackRock Inc. purchased a new position in shares of Aflac Incorporated (NYSE:AFL - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 34,915,032 shares of the financial services provider's stock, valued at approximately $4,093,787,000. BlackRock Inc. owned approximately 6.86% of Aflac as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in AFL. Whipplewood Advisors LLC purchased a new stake in shares of Aflac during the first quarter worth $25,000. Groupe la Francaise purchased a new position in Aflac in the first quarter valued at $25,000. Quarry LP acquired a new position in Aflac during the 4th quarter worth $25,000. Nalls Sherbakoff Group LLC acquired a new position in Aflac during the 4th quarter worth $29,000. Finally, Evergreen Advisors LLC purchased a new stake in Aflac during the 1st quarter worth about $29,000. Hedge funds and other institutional investors own 67.44% of the company's stock.

Insider Buying and Selling

In other news, Director Joseph L. Moskowitz sold 600 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $124.10, for a total value of $74,460.00. Following the completion of the sale, the director directly owned 32,710 shares of the company's stock, valued at approximately $4,059,311. This represents a 1.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Post Holdings Co. Ltd. Japan sold 14,100 shares of Aflac stock in a transaction on Friday, August 14th. The shares were sold at an average price of $121.43, for a total transaction of $1,712,163.00. Following the completion of the transaction, the insider directly owned 50,858,590 shares in the company, valued at $6,175,758,583.70. The trade was a 0.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 523,833 shares of company stock valued at $61,339,113. 0.80% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Barclays reaffirmed an "underweight" rating and issued a $99.00 price target (up from $98.00) on shares of Aflac in a research report on Friday, August 7th. Keefe, Bruyette & Woods upped their target price on shares of Aflac from $120.00 to $125.00 and gave the stock a "market perform" rating in a research note on Tuesday, August 11th. Wall Street Zen cut shares of Aflac from a "hold" rating to a "sell" rating in a report on Saturday. Mizuho set a $116.00 price target on shares of Aflac in a research note on Monday, August 10th. Finally, Morgan Stanley boosted their price target on shares of Aflac from $120.00 to $125.00 and gave the stock an "equal weight" rating in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $117.58.

Aflac Price Performance

Shares of AFL opened at $121.74 on Wednesday. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.12 and a quick ratio of 0.12. Aflac Incorporated has a 1-year low of $104.66 and a 1-year high of $130.22. The stock has a market cap of $61.03 billion, a PE ratio of 13.05, a price-to-earnings-growth ratio of 1.96 and a beta of 0.60. The firm has a fifty day moving average price of $121.60 and a 200 day moving average price of $116.04.

Aflac (NYSE:AFL - Get Free Report) last issued its quarterly earnings data 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 return on equity of 13.27% and a net margin of 26.91%.The firm had revenue of $4.22 billion for the quarter, compared to analysts' expectations of $4.11 billion. During the same period in the previous year, the business posted $1.78 EPS. The business's revenue for the quarter was down 1.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Aflac Incorporated will post 7.04 EPS for the current year.

Aflac Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Wednesday, August 19th will be paid a $0.61 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $2.44 dividend on an annualized basis and a yield of 2.0%. Aflac's payout ratio is currently 26.15%.

Aflac Company Profile

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.

Want to see what other hedge funds are holding AFL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Aflac Incorporated (NYSE:AFL - 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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source