Kinloch Capital LLC Invests $4.34 Million in Aflac Incorporated $AFL

Key Points

• Kinloch Capital acquired 37,018 Aflac shares worth approximately $4.34 million during the second quarter. Institutional investors collectively own 67.44% of Aflac’s stock, with Vanguard holding more than 57 million shares.
• Aflac reported quarterly EPS of $1.75, slightly below the $1.76 consensus estimate, while revenue of $4.22 billion exceeded expectations. Revenue declined 1% year over year.
• The company declared a quarterly dividend of $0.61 per share, or $2.44 annualized, representing a 2.1% yield. Analysts maintain a consensus “Hold” rating with an average price target of $116.62.

Kinloch Capital LLC bought a new stake in Aflac Incorporated (NYSE:AFL - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 37,018 shares of the financial services provider's stock, valued at approximately $4,340,000.

Several other institutional investors and hedge funds have also recently modified their holdings of AFL. BlackRock Inc. purchased a new position in Aflac in the 2nd quarter valued at approximately $4,093,787,000. Vanguard Group Inc. boosted its holdings in shares of Aflac by 13.4% in the fourth quarter. Vanguard Group Inc. now owns 57,142,072 shares of the financial services provider's stock worth $6,301,056,000 after acquiring an additional 6,759,169 shares during the period. Norges Bank bought a new position in shares of Aflac in the fourth quarter worth $420,078,000. Legal & General Group Plc purchased a new position in shares of Aflac in the second quarter valued at $404,639,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Aflac in the second quarter valued at $298,418,000. 67.44% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Aflac

In other news, Director Joseph L. Moskowitz sold 600 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $124.10, for a total transaction of $74,460.00. Following the completion of the transaction, the director owned 32,710 shares of the company's stock, valued at approximately $4,059,311. The trade was a 1.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Post Holdings Co. Ltd. Japan sold 13,100 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $116.60, for a total transaction of $1,527,460.00. Following the completion of the transaction, the insider owned 50,804,690 shares in the company, valued at approximately $5,923,826,854. This trade represents a 0.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 492,725 shares of company stock valued at $57,777,403. Corporate insiders own 0.80% of the company's stock.

Aflac Trading Up 1.8%

Shares of AFL stock opened at $118.19 on Tuesday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.12 and a current ratio of 0.12. Aflac Incorporated has a 52-week low of $104.66 and a 52-week high of $130.22. The company has a market capitalization of $59.25 billion, a PE ratio of 12.67, a price-to-earnings-growth ratio of 1.87 and a beta of 0.60. The business's fifty day moving average is $121.58 and its 200 day moving average is $116.19.

Aflac (NYSE:AFL - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The financial services provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.76 by ($0.01). Aflac had a net margin of 26.91% and a return on equity of 13.27%. The business had revenue of $4.22 billion for the quarter, compared to the consensus estimate of $4.11 billion. During the same period in the prior year, the business posted $1.78 EPS. Aflac's quarterly revenue was down 1.0% on a year-over-year basis. On average, equities research analysts anticipate that Aflac Incorporated will post 7.04 EPS for the current fiscal year.

Aflac Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 19th will be given a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Wednesday, August 19th. Aflac's dividend payout ratio (DPR) is 26.15%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on AFL shares. Wells Fargo & Company set a $122.00 price objective on Aflac and gave the stock an "equal weight" rating in a report on Wednesday, August 19th. Jefferies Financial Group reaffirmed a "hold" rating and set a $108.00 target price (up from $100.00) on shares of Aflac in a report on Friday, July 10th. Mizuho set a $116.00 price target on Aflac in a research report on Monday, August 10th. JPMorgan Chase & Co. lowered their price target on shares of Aflac from $117.00 to $116.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. Finally, Weiss Ratings upgraded shares of Aflac from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $116.62.

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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