Trillium Asset Management LLC Makes New Investment in Aflac Incorporated $AFL

Key Points

• Trillium Asset Management acquired 129,798 Aflac shares in the second quarter, valued at approximately $15.2 million. Institutional investors and hedge funds collectively own 67.44% of Aflac’s stock.
• Aflac’s latest results were mixed: quarterly EPS of $1.75 narrowly missed estimates, while revenue of $4.22 billion exceeded forecasts but declined 1% year over year.
• The company declared a quarterly dividend of $0.61, equivalent to an annualized $2.44 payout and a roughly 2.1% yield. Analysts maintain a consensus “Hold” rating with an average price target of $116.62.

Trillium Asset Management LLC acquired a new position in shares of Aflac Incorporated (NYSE:AFL - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 129,798 shares of the financial services provider's stock, valued at approximately $15,219,000.

Other large investors have also made changes to their positions in the company. Whipplewood Advisors LLC acquired a new stake in Aflac during the first quarter worth about $25,000. Groupe la Francaise acquired a new position in Aflac in the 1st quarter valued at approximately $25,000. Quarry LP bought a new stake in shares of Aflac in the 4th quarter worth approximately $25,000. Edmond DE Rothschild Holding S.A. acquired a new stake in shares of Aflac during the 2nd quarter worth approximately $27,000. Finally, Nalls Sherbakoff Group LLC acquired a new stake in shares of Aflac during the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 67.44% of the company's stock.

Aflac Stock Performance

Shares of AFL stock opened at $116.16 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.12 and a quick ratio of 0.12. The stock has a market cap of $58.24 billion, a PE ratio of 12.45, a price-to-earnings-growth ratio of 1.88 and a beta of 0.60. The stock has a 50-day moving average of $121.58 and a 200-day moving average of $116.12. Aflac Incorporated has a one year low of $104.66 and a one year high of $130.22.

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

Aflac Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 19th will be issued a $0.61 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $2.44 annualized dividend and a dividend yield of 2.1%. Aflac's payout ratio is 26.15%.

Insider Activity

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 63,000 shares of the company's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $118.12, for a total value of $7,441,560.00. Following the completion of the sale, the insider owned 51,169,435 shares in the company, valued at $6,044,133,662.20. This represents a 0.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 484,925 shares of company stock valued at $56,869,948. 0.80% of the stock is owned by insiders.

More Aflac News

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac continues to offer a defensive income profile, with 43 consecutive years of dividend increases. The company raised its quarterly dividend by 5.2% earlier this year, bringing the annualized payout to $2.44 per share and the yield to roughly 2.1%. This Dividend Stock Has a Realistic Shot at Becoming a Dividend King
• Neutral Sentiment: Recent quarterly results were mixed: earnings per share of $1.75 narrowly missed estimates, while $4.22 billion in revenue exceeded forecasts. However, revenue declined 1% year over year and EPS fell from $1.78 in the prior-year period, limiting the earnings-related support for the stock.
• Negative Sentiment: Wolfe Research began coverage at “underperform” with a $103 target, citing a valuation or outlook that appears less attractive than other analysts’ views. The target is below Aflac’s 200-day moving average and the current consensus target near $116. Wolfe Research Starts Aflac at Underperform
• Negative Sentiment: Japan Post Holdings, a major Aflac shareholder, disclosed several sales totaling about 42,000 shares during August 14–18, including a $1.73 million sale on August 18. The transactions were executed under a pre-arranged Rule 10b5-1 plan and reduced its position by only about 0.03%, so the direct supply impact is limited, but the repeated selling may weigh on sentiment. Major AFLAC Stakeholder Makes Bold Move With High-Value Stock Sale

Wall Street Analysts Forecast Growth

AFL has been the subject of a number of recent research reports. Barclays restated an "underweight" rating and issued a $99.00 target price (up from $98.00) on shares of Aflac in a research note on Friday, August 7th. 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. Weiss Ratings cut shares of Aflac from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Friday, August 7th. Morgan Stanley raised their price objective on shares of Aflac from $120.00 to $125.00 and gave the stock an "equal weight" rating in a report on Thursday, May 21st. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $108.00 target price (up from $100.00) on shares of Aflac in a research report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $116.62.

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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