Diamond Hill Capital Management LLC Investment Advisor Makes New $94.61 Million Investment in MetLife, Inc. $MET

Key Points

• Diamond Hill Capital Management initiated a $94.61 million MetLife position in the second quarter, purchasing 1.12 million shares. Institutional investors collectively own approximately 94.99% of MetLife’s stock.
• MetLife reported quarterly earnings of $2.43 per share, exceeding the $2.30 analyst consensus, while revenue rose 10.5% year over year. The board also authorized a $3 billion share repurchase program covering up to 4.8% of outstanding shares.
• MetLife declared a quarterly dividend of $0.5925 per share, equivalent to a 2.4% annualized yield. Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $101.07.

Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in MetLife, Inc. (NYSE:MET - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 1,118,126 shares of the financial services provider's stock, valued at approximately $94,605,000. Diamond Hill Capital Management LLC Investment Advisor owned approximately 0.17% of MetLife as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. HBK Sorce Advisory LLC purchased a new stake in MetLife during the 2nd quarter worth about $1,951,000. Flputnam Investment Management Co. purchased a new stake in shares of MetLife in the second quarter worth about $465,000. Global Retirement Partners LLC purchased a new stake in shares of MetLife in the second quarter worth about $1,255,000. 1ST Source Bank bought a new position in shares of MetLife in the second quarter valued at approximately $3,251,000. Finally, Bank of New York Mellon Corp purchased a new position in MetLife during the second quarter valued at approximately $293,287,000. Hedge funds and other institutional investors own 94.99% of the company's stock.

MetLife Trading Down 0.1%

Shares of MET opened at $97.57 on Monday. MetLife, Inc. has a 1-year low of $67.33 and a 1-year high of $100.93. The company has a market capitalization of $62.78 billion, a P/E ratio of 18.69, a P/E/G ratio of 0.75 and a beta of 0.78. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.20 and a quick ratio of 0.20. The firm's 50 day simple moving average is $91.52 and its 200 day simple moving average is $81.58.

MetLife (NYSE:MET - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The financial services provider reported $2.43 EPS for the quarter, topping analysts' consensus estimates of $2.30 by $0.13. The business had revenue of $13.52 billion during the quarter, compared to analysts' expectations of $19.67 billion. MetLife had a net margin of 4.57% and a return on equity of 23.39%. The business's quarterly revenue was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.02 EPS. Sell-side analysts forecast that MetLife, Inc. will post 9.7 earnings per share for the current fiscal year.

MetLife announced that its board has authorized a share buyback plan on Wednesday, August 5th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 4.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

MetLife Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 4th will be issued a dividend of $0.5925 per share. This represents a $2.37 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 4th. MetLife's payout ratio is currently 45.40%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on MET. Atlantic Securities set a $103.00 target price on shares of MetLife in a report on Wednesday, July 15th. Wall Street Zen lowered shares of MetLife from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Morgan Stanley upped their price target on shares of MetLife from $93.00 to $103.00 and gave the stock an "overweight" rating in a report on Monday, July 6th. JPMorgan Chase & Co. increased their price objective on MetLife from $106.00 to $108.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 11th. Finally, Wells Fargo & Company lifted their price objective on MetLife from $95.00 to $101.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $101.07.

MetLife Profile

MetLife, Inc is a global provider of insurance, annuities and employee benefit programs. Headquartered in New York City, the company offers a range of risk protection and retirement solutions to individuals, employers and institutional clients. Its core businesses include life insurance, group benefits, retirement products such as annuities, and supplemental health products including dental and disability coverage.

In addition to traditional life and group insurance, MetLife provides workplace benefits and voluntary products distributed through employer-sponsored programs.

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