Ethic Inc. Reduces Holdings in Aflac Incorporated $AFL

Key Points

• Ethic Inc. has reduced its holdings in Aflac Incorporated by 3.3%, now owning 128,188 shares valued at $13,469,000 following the sale of 4,419 shares in Q2.
• Aflac's Board of Directors has authorized a stock repurchase program to buy back up to 100 million shares, a move that generally indicates confidence in the company's valuation.
• The company declared a quarterly dividend of $0.58 per share, reflecting a 2.1% yield and a dividend payout ratio of 52.61%.

Ethic Inc. cut its holdings in Aflac Incorporated (NYSE:AFL - Free Report) by 3.3% during the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 128,188 shares of the financial services provider's stock after selling 4,419 shares during the period. Ethic Inc.'s holdings in Aflac were worth $13,469,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AFL. Mid American Wealth Advisory Group Inc. purchased a new stake in Aflac in the 2nd quarter valued at about $26,000. AlphaCore Capital LLC purchased a new position in shares of Aflac during the 1st quarter worth approximately $28,000. Hilltop National Bank acquired a new stake in Aflac in the 2nd quarter valued at approximately $32,000. Golden State Wealth Management LLC raised its position in Aflac by 121.9% in the first quarter. Golden State Wealth Management LLC now owns 304 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 167 shares during the period. Finally, Groupe la Francaise acquired a new position in Aflac during the first quarter worth $34,000. Hedge funds and other institutional investors own 67.44% of the company's stock.

Insider Transactions at Aflac

In other news, Director Joseph L. Moskowitz sold 1,000 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $102.57, for a total value of $102,570.00. Following the transaction, the director owned 25,105 shares in the company, valued at approximately $2,575,019.85. This represents a 3.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.80% of the stock is owned by company insiders.

Aflac Stock Down 0.4%

AFL stock opened at $108.33 on Wednesday. The company's 50 day moving average price is $108.55 and its 200 day moving average price is $105.43. The firm has a market capitalization of $57.94 billion, a price-to-earnings ratio of 24.60, a PEG ratio of 3.02 and a beta of 0.86. Aflac Incorporated has a fifty-two week low of $96.95 and a fifty-two week high of $115.43. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.11 and a current ratio of 0.11.

Aflac (NYSE:AFL - Get Free Report) last posted its quarterly earnings results on Monday, February 27th. The financial services provider reported $1.07 EPS for the quarter. Aflac had a net margin of 15.32% and a return on equity of 15.08%. The company had revenue of $5.91 billion during the quarter. On average, equities research analysts anticipate that Aflac Incorporated will post 6.88 EPS for the current fiscal year.

Aflac announced that its Board of Directors has authorized a stock repurchase program on Tuesday, August 12th that authorizes the company to buyback 100,000,000 shares. This buyback authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

Aflac Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Shareholders of record on Wednesday, August 20th were paid a $0.58 dividend. The ex-dividend date was Wednesday, August 20th. This represents a $2.32 dividend on an annualized basis and a yield of 2.1%. Aflac's dividend payout ratio (DPR) is currently 52.61%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. JPMorgan Chase & Co. boosted their price objective on Aflac from $96.00 to $100.00 and gave the company a "neutral" rating in a report on Tuesday, July 8th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Aflac in a research report on Wednesday, October 8th. Barclays reissued an "underweight" rating and set a $102.00 price target (up previously from $100.00) on shares of Aflac in a research report on Wednesday, October 8th. Keefe, Bruyette & Woods raised their price objective on shares of Aflac from $108.00 to $110.00 and gave the company a "market perform" rating in a research note on Thursday, October 9th. Finally, UBS Group cut their target price on shares of Aflac from $114.00 to $111.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $109.45.

Aflac Company Profile

Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. The company operates through Aflac Japan and Aflac U.S. segments. The Aflac Japan segment offers cancer, medical, nursing care, work leave, GIFT, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products in Japan.

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