DNB Asset Management AS Acquires 56,975 Shares of Aflac Incorporated $AFL

Key Points

• DNB Asset Management AS increased its Aflac stake by 51.3% in the fourth quarter, buying 56,975 additional shares and bringing its total holdings to 168,003 shares worth about $18.5 million.
• Aflac’s latest quarter was mixed: revenue beat expectations at $4.24 billion, but earnings per share missed estimates at $1.75 versus $1.80 expected.
• The company announced a quarterly dividend of $0.61 per share and also issued $500 million of senior notes due 2036, while analysts currently have a consensus Hold rating on the stock.

DNB Asset Management AS grew its holdings in Aflac Incorporated (NYSE:AFL - Free Report) by 51.3% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 168,003 shares of the financial services provider's stock after purchasing an additional 56,975 shares during the period. DNB Asset Management AS's holdings in Aflac were worth $18,526,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of AFL. Navalign LLC bought a new position in shares of Aflac in the 4th quarter valued at $32,000. Darwin Wealth Management LLC bought a new position in shares of Aflac in the 2nd quarter valued at $33,000. Activest Wealth Management grew its position in Aflac by 95.6% in the 4th quarter. Activest Wealth Management now owns 311 shares of the financial services provider's stock worth $34,000 after purchasing an additional 152 shares during the period. Westside Investment Management Inc. grew its position in Aflac by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 324 shares of the financial services provider's stock worth $36,000 after purchasing an additional 162 shares during the period. Finally, Board of the Pension Protection Fund bought a new stake in Aflac in the 4th quarter worth approximately $44,000. Institutional investors own 67.44% of the company's stock.

Aflac Trading Up 0.4%

Shares of AFL stock opened at $116.83 on Friday. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.11 and a quick ratio of 0.11. Aflac Incorporated has a 1 year low of $96.95 and a 1 year high of $119.32. The firm has a fifty day moving average price of $111.74 and a 200-day moving average price of $111.25. The company has a market cap of $59.47 billion, a price-to-earnings ratio of 13.26, a PEG ratio of 2.04 and a beta of 0.62.

Aflac (NYSE:AFL - Get Free Report) last released its earnings results on Wednesday, April 29th. The financial services provider reported $1.75 earnings per share for the quarter, missing analysts' consensus estimates of $1.80 by ($0.05). Aflac had a net margin of 25.60% and a return on equity of 13.88%. The firm had revenue of $4.24 billion for the quarter, compared to analysts' expectations of $4.20 billion. During the same quarter last year, the firm posted $1.66 EPS. The firm's quarterly revenue was up 27.9% compared to the same quarter last year. As a group, equities analysts predict that Aflac Incorporated will post 7.12 earnings per share for the current year.

Aflac Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Wednesday, May 20th will be paid a dividend of $0.61 per share. The ex-dividend date is Wednesday, May 20th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.1%. Aflac's payout ratio is 27.70%.

Insider Buying and Selling at Aflac

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 166,000 shares of Aflac stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $112.38, for a total transaction of $18,655,080.00. Following the transaction, the insider owned 51,723,100 shares in the company, valued at approximately $5,812,641,978. The trade was a 0.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 648,375 shares of company stock worth $72,256,429. 0.80% of the stock is currently owned by insiders.

Key Aflac News

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac issued $500 million of 5.150% senior notes due 2036, which should add balance-sheet flexibility and support liquidity for the insurer’s capital management plans. Aflac Issues $500 Million 2036 Senior Notes Offering
• Positive Sentiment: Recent commentary highlighted strong sales growth in Japan and the U.S., improving Japan margins, and a lower benefit ratio, all of which support Aflac’s earnings durability. Here's Why You Should Keep Holding Aflac in Your Portfolio
• Neutral Sentiment: The latest quarter was mixed, with revenue beating estimates but earnings per share missing consensus, leaving investors focused on whether growth can offset margin pressure.
• Neutral Sentiment: Several recent articles questioned Aflac’s valuation and risk profile after softer Japan margins and the earnings miss, but these pieces mainly reinforced existing concerns rather than introducing a new catalyst.
• Negative Sentiment: Major shareholder Post Holdings Co. Ltd. Japan disclosed another small sale of Aflac shares under a pre-arranged 10b5-1 plan, adding to a recent pattern of insider selling that can weigh on sentiment. Aflac NYSE: AFL Major Shareholder Sells $2,767,885.00 in Stock
• Negative Sentiment: Director Arthur Reginald Collins also sold shares recently, which may add a modest headwind to investor sentiment around the stock. SEC insider filing for Arthur Reginald Collins sale

Analyst Ratings Changes

A number of research firms have commented on AFL. Wells Fargo & Company cut their target price on shares of Aflac from $116.00 to $111.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 5th. Barclays set a $99.00 price objective on shares of Aflac and gave the company an "underweight" rating in a research report on Thursday, April 30th. Weiss Ratings downgraded shares of Aflac from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 1st. Mizuho set a $104.00 price objective on shares of Aflac in a research report on Monday, May 4th. Finally, Wall Street Zen raised shares of Aflac from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $111.36.

Aflac 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.

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