Dimensional Fund Advisors LP Decreases Stake in Employers Holdings Inc $EIG

Key Points

• Dimensional Fund Advisors reduced its Employers Holdings stake by 2.4%, selling 41,491 shares and retaining approximately 9.35% of the company. Institutional investors and hedge funds collectively own 80.49% of EIG.
• Employers reported a quarterly earnings beat, with EPS of $0.70 versus the $0.57 consensus and revenue of $220.2 million versus expectations of $203.5 million. However, premiums declined year over year and the 105.8% combined ratio indicated underwriting losses.
• Truist upgraded EIG to “Buy” and raised its price target to $59, while the company declared a $0.34 quarterly dividend and continued share repurchases. Despite the positive developments, the broader analyst consensus remains “Hold.”

Dimensional Fund Advisors LP lessened its holdings in shares of Employers Holdings Inc (NYSE:EIG - Free Report) by 2.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,705,311 shares of the financial services provider's stock after selling 41,491 shares during the quarter. Dimensional Fund Advisors LP owned approximately 9.35% of Employers worth $70,157,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. Azarias Capital Management L.P. bought a new position in shares of Employers in the fourth quarter valued at approximately $2,983,000. Legato Capital Management LLC boosted its holdings in shares of Employers by 230.7% during the 4th quarter. Legato Capital Management LLC now owns 34,479 shares of the financial services provider's stock worth $1,488,000 after buying an additional 24,053 shares during the period. Intech Investment Management LLC grew its stake in Employers by 719.3% in the 4th quarter. Intech Investment Management LLC now owns 95,115 shares of the financial services provider's stock valued at $4,106,000 after buying an additional 83,506 shares during the last quarter. Teacher Retirement System of Texas grew its stake in Employers by 24.4% in 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 buying an additional 27,299 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new position in Employers in the 4th quarter worth $1,606,000. 80.49% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting 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.

Employers Trading Down 2.2%

Shares of Employers stock opened at $50.47 on Friday. Employers Holdings Inc has a 52-week low of $35.73 and a 52-week high of $52.59. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.44 and a quick ratio of 0.40. The firm has a market capitalization of $920.54 million, a PE ratio of 73.14 and a beta of 0.46. The company's fifty day moving average price is $48.14 and its two-hundred day moving average price is $44.29.

Employers (NYSE:EIG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.70 EPS for the quarter, topping analysts' consensus estimates of $0.57 by $0.13. The firm had revenue of $220.20 million during the quarter, compared to analysts' expectations of $203.51 million. Employers had a net margin of 0.91% and a return on equity of 1.30%. The company's revenue for the quarter was down 10.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.48 earnings per share. On average, analysts expect that Employers Holdings Inc will post 2.15 EPS for the current year.

Employers Announces Dividend

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

Analyst Ratings Changes

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

Employers Company 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.

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