Handelsbanken Fonder AB Increases Stock Position in Aflac Incorporated $AFL

Key Points

• Handelsbanken Fonder AB increased its stake in Aflac by 9.2% in the fourth quarter, ending with 155,551 shares valued at about $17.15 million.
• Aflac’s latest earnings showed EPS of $1.75, missing estimates, while revenue came in slightly above expectations at $4.24 billion and rose 27.9% year over year.
• The company declared a quarterly dividend of $0.61 per share payable June 1, equal to an annualized yield of about 2.1%, even as insiders recently sold shares.

Handelsbanken Fonder AB grew its stake in shares of Aflac Incorporated (NYSE:AFL - Free Report) by 9.2% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 155,551 shares of the financial services provider's stock after acquiring an additional 13,149 shares during the quarter. Handelsbanken Fonder AB's holdings in Aflac were worth $17,153,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Navalign LLC purchased a new stake in shares of Aflac during the 4th quarter valued at about $32,000. Darwin Wealth Management LLC purchased a new position in shares of Aflac in the second quarter worth approximately $33,000. Activest Wealth Management boosted its holdings in shares of Aflac by 95.6% in the fourth quarter. Activest Wealth Management now owns 311 shares of the financial services provider's stock worth $34,000 after buying an additional 152 shares during the last quarter. Westside Investment Management Inc. boosted its holdings in shares of Aflac by 100.0% in the third quarter. Westside Investment Management Inc. now owns 324 shares of the financial services provider's stock worth $36,000 after buying an additional 162 shares during the last quarter. Finally, Park Square Financial Group LLC boosted its holdings in shares of Aflac by 80.6% in the fourth quarter. Park Square Financial Group LLC now owns 354 shares of the financial services provider's stock worth $37,000 after buying an additional 158 shares during the last quarter. Hedge funds and other institutional investors own 67.44% of the company's stock.

Analysts Set New Price Targets

AFL has been the topic of a number of research reports. Weiss Ratings raised shares of Aflac from a "buy (b-)" rating to a "buy (a-)" rating in a report on Friday, May 15th. Keefe, Bruyette & Woods raised their price objective on shares of Aflac from $113.00 to $115.00 and gave the stock a "market perform" rating in a report on Friday, April 10th. Piper Sandler dropped their price objective on shares of Aflac from $130.00 to $125.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Mizuho set a $104.00 price objective on shares of Aflac in a report on Monday, May 4th. Finally, Evercore raised shares of Aflac from a "strong sell" rating to a "strong-buy" rating in a report on Thursday, April 9th. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $111.36.

Aflac Price Performance

NYSE AFL opened at $117.28 on Thursday. Aflac Incorporated has a 12 month low of $96.95 and a 12 month high of $119.81. The stock has a market cap of $59.69 billion, a price-to-earnings ratio of 13.31, a PEG ratio of 2.06 and a beta of 0.62. The company's 50 day moving average is $112.17 and its two-hundred day moving average is $111.53. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.26.

Aflac (NYSE:AFL - Get Free Report) last released its earnings results on Wednesday, April 29th. The financial services provider reported $1.75 EPS for the quarter, missing analysts' consensus estimates of $1.80 by ($0.05). Aflac had a return on equity of 13.88% and a net margin of 25.60%.The firm had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $4.20 billion. During the same quarter in the previous year, the business posted $1.66 EPS. Aflac's revenue was up 27.9% on a year-over-year basis. As a group, research analysts anticipate 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. Shareholders 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 yield of 2.1%. Aflac's dividend payout ratio (DPR) is presently 27.70%.

Insider Activity at Aflac

In other Aflac news, major shareholder Post Holdings Co. Ltd. Japan sold 41,700 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $118.45, for a total transaction of $4,939,365.00. Following the sale, the insider owned 51,474,645 shares in the company, valued at approximately $6,097,171,700.25. This trade represents a 0.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joseph L. Moskowitz sold 600 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $113.73, for a total transaction of $68,238.00. Following the sale, the director owned 25,368 shares in the company, valued at approximately $2,885,102.64. The trade was a 2.31% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 739,815 shares of company stock worth $82,996,891 in the last 90 days. Insiders own 0.80% of the company's stock.

More Aflac News

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Zacks said the accident and health insurance industry remains attractive, citing benefits from rising underwriting exposure and faster digitalization, which is supportive for Aflac and peers. Article: Zacks Industry Outlook Highlights Aflac, Unum, Globe Life, Trupanion and Employers
• Positive Sentiment: The company’s quarterly dividend of $0.61 per share reinforces its appeal to income investors and may help support the stock.
• Neutral Sentiment: Aflac’s latest earnings call highlighted strength in Japan, suggesting underlying business momentum even though the most recent EPS report missed expectations. Article: Aflac Earnings Call Highlights Japan Surge and Strength
• Negative Sentiment: Insider selling has weighed on sentiment, including a recent $4.9 million sale by insiders and additional share sales by major shareholder Post Holdings Co. Ltd. Japan. Article: Aflac Insiders Sell US$4.9m Of Stock, Possibly Signalling Caution
• Negative Sentiment: Director Thomas Kenny also sold shares, adding to concerns that insiders may be taking profits after the stock’s recent strength. Article: Aflac NYSE: AFL Director Sells $202,831.80 in Stock
• Negative Sentiment: Investors may also stay cautious because Aflac’s last reported EPS missed analyst estimates, even though revenue came in ahead of expectations.

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.

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