Resona Asset Management Co. Ltd. Trims Position in Aflac Incorporated $AFL

Key Points

• Resona Asset Management cut its Aflac stake by 6.0% in the fourth quarter, though it still held 173,743 shares worth about $19.1 million. Institutional ownership remains high overall, at 67.44% of Aflac’s stock.
• Insiders have been selling shares, including directors Joseph L. Moskowitz and Thomas J. Kenny, and insiders sold 698,115 shares worth about $78.1 million over the last 90 days. That activity may signal profit-taking after the stock’s recent strength.
• Aflac’s latest earnings missed EPS estimates at $1.75 versus $1.80 expected, even though revenue topped forecasts and rose 27.9% year over year. The company also announced a quarterly dividend of $0.61 per share, yielding about 2.1%.

Resona Asset Management Co. Ltd. lessened its stake in Aflac Incorporated (NYSE:AFL - Free Report) by 6.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 173,743 shares of the financial services provider's stock after selling 11,011 shares during the period. Resona Asset Management Co. Ltd.'s holdings in Aflac were worth $19,144,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in AFL. Navalign LLC purchased a new position in Aflac in the 4th quarter worth about $32,000. Darwin Wealth Management LLC purchased a new position in Aflac in the 2nd quarter worth about $33,000. Activest Wealth Management increased its stake 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 buying an additional 152 shares during the period. Westside Investment Management Inc. increased its stake 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 buying an additional 162 shares during the period. Finally, Park Square Financial Group LLC increased its stake in Aflac by 80.6% in the 4th 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 period. Hedge funds and other institutional investors own 67.44% of the company's stock.

Insiders Place Their Bets

In other news, Director Joseph L. Moskowitz sold 600 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $113.73, for a total value of $68,238.00. Following the sale, the director directly owned 25,368 shares in the company, valued at approximately $2,885,102.64. This trade represents a 2.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Thomas J. Kenny sold 1,740 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $116.57, for a total transaction of $202,831.80. Following the completion of the sale, the director owned 13,219 shares in the company, valued at $1,540,938.83. This represents a 11.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 698,115 shares of company stock worth $78,057,526. Insiders own 0.80% of the company's stock.

Analysts Set New Price Targets

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 on the stock in a research report on Tuesday, May 5th. Wall Street Zen raised shares of Aflac from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Evercore raised shares of Aflac from a "strong sell" rating to a "strong-buy" rating in a research report on Thursday, April 9th. Keefe, Bruyette & Woods raised their target price on shares of Aflac from $113.00 to $115.00 and gave the company a "market perform" rating in a research report on Friday, April 10th. Finally, Piper Sandler cut their target price on shares of Aflac from $130.00 to $125.00 and set an "overweight" rating on the stock in a research report on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $111.36.

Aflac Trading Down 0.2%

NYSE AFL opened at $118.38 on Wednesday. Aflac Incorporated has a one year low of $96.95 and a one year high of $119.81. The company has a market capitalization of $60.25 billion, a price-to-earnings ratio of 13.44, a price-to-earnings-growth ratio of 2.07 and a beta of 0.62. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.11 and a current ratio of 0.11. The company's 50-day simple moving average is $112.02 and its two-hundred day simple moving average is $111.45.

Aflac (NYSE:AFL - Get Free Report) last released its quarterly 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 during the quarter, compared to the consensus estimate of $4.20 billion. During the same quarter in the prior year, the business posted $1.66 earnings per share. The firm's quarterly revenue was up 27.9% on a year-over-year basis. Equities analysts forecast that Aflac Incorporated will post 7.12 EPS for the current fiscal year.

Aflac Announces Dividend

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

Aflac News Roundup

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac’s industry outlook remains favorable, with analysts citing benefits from rising underwriting exposure and faster digitalization in accident and health insurance. Article: 5 Stocks to Watch From Prospering Accident & Health Insurance Industry
• Positive Sentiment: The company’s quarterly dividend of $0.61 per share underscores a steady shareholder-return profile, which can help support the stock for income-focused investors.
• Neutral Sentiment: Institutional ownership remains high, and several funds recently added to positions, suggesting continued interest from larger investors.
• Negative Sentiment: A major shareholder, Post Holdings Co. Ltd. Japan, sold about 23,500 to 24,500 shares in recent transactions under a pre-arranged trading plan, which may pressure sentiment. Article: SEC filing for Post Holdings Co. Ltd. Japan sale
• Negative Sentiment: Director Thomas Kenny also sold 1,740 shares, adding to the impression of insider profit-taking after the stock’s recent strength. Article: SEC filing for Thomas J. Kenny sale
• Negative Sentiment: Even after a strong run, Aflac’s last earnings report missed EPS estimates, which may keep some investors cautious about near-term upside.

About Aflac

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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