Vanguard Group Inc. Decreases Position in Kemper Corporation $KMPR

Key Points

• Vanguard Group trimmed its Kemper stake by 4.3% in the fourth quarter, though it still held about 10.04% of the insurer, valued at roughly $238.4 million.
• Kemper’s latest earnings were weak, with Q1 EPS of $0.21 versus the expected $0.81 and revenue of $1.11 billion below estimates and down year over year.
• The company continues to return cash to shareholders with a quarterly dividend of $0.32 per share and a 4.2% annualized yield, even as analysts maintain a cautious outlook and several have downgraded the stock.

Vanguard Group Inc. cut its position in Kemper Corporation (NYSE:KMPR - Free Report) by 4.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,881,239 shares of the insurance provider's stock after selling 264,014 shares during the quarter. Vanguard Group Inc. owned about 10.04% of Kemper worth $238,425,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the business. Hantz Financial Services Inc. grew its stake in Kemper by 1,098.0% in the 3rd quarter. Hantz Financial Services Inc. now owns 587 shares of the insurance provider's stock valued at $30,000 after buying an additional 538 shares in the last quarter. Jones Financial Companies Lllp lifted its position in shares of Kemper by 73.5% during the third quarter. Jones Financial Companies Lllp now owns 656 shares of the insurance provider's stock worth $34,000 after acquiring an additional 278 shares in the last quarter. Abich Financial Wealth Management LLC bought a new position in shares of Kemper in the third quarter worth $36,000. Danske Bank A S purchased a new position in shares of Kemper in the third quarter valued at $36,000. Finally, Signaturefd LLC purchased a new position in shares of Kemper in the fourth quarter valued at $32,000. 86.23% of the stock is currently owned by hedge funds and other institutional investors.

Kemper News Summary

Here are the key news stories impacting Kemper this week:

• Neutral Sentiment: Kemper announced a quarterly dividend of $0.32 per share, a move that supports the stock’s income appeal and signals continued capital return to shareholders.
• Neutral Sentiment: The company also reduced its credit facility to improve cost efficiency, which may help streamline financing and lower expenses over time.
• Neutral Sentiment: At its annual meeting, shareholders re-elected the board and backed pay and auditor oversight proposals, suggesting no major governance disruption.
• Negative Sentiment: Kemper reported Q1 EPS of $0.21 versus expectations for $0.81, with revenue of $1.11 billion below estimates and down year over year, reinforcing concern about near-term earnings momentum.
• Negative Sentiment: Analysts highlighted ongoing auto-market headwinds and weaker-than-expected results, with William Blair reiterating a Sell rating on the stock.
• Negative Sentiment: Management outlined a goal to reduce the specialty auto expense ratio below 20%, but that target underscores current pressure on profitability and the need for operational improvement.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on KMPR shares. Piper Sandler dropped their price objective on Kemper from $35.00 to $28.00 and set an "underweight" rating on the stock in a report on Thursday. Citigroup lowered Kemper to a "market perform" rating in a report on Thursday, February 5th. Citizens Jmp cut Kemper from an "outperform" rating to a "market perform" rating in a research report on Thursday, February 5th. Wall Street Zen downgraded shares of Kemper from a "hold" rating to a "sell" rating in a report on Saturday, February 14th. Finally, Zacks Research raised shares of Kemper from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 14th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Kemper currently has a consensus rating of "Reduce" and an average price target of $52.75.

Kemper Trading Up 3.2%

Shares of KMPR stock opened at $30.33 on Friday. The company has a market capitalization of $1.79 billion, a PE ratio of 48.91 and a beta of 1.16. Kemper Corporation has a 52-week low of $27.74 and a 52-week high of $66.13. The business's fifty day moving average is $31.46 and its 200 day moving average is $36.52. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.18 and a current ratio of 0.18.

Kemper (NYSE:KMPR - Get Free Report) last posted its earnings results on Wednesday, May 6th. The insurance provider reported $0.21 EPS for the quarter, missing the consensus estimate of $0.81 by ($0.60). The business had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.17 billion. Kemper had a return on equity of 4.80% and a net margin of 0.89%.Kemper's quarterly revenue was down 7.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.65 earnings per share. On average, equities research analysts anticipate that Kemper Corporation will post 2.83 EPS for the current fiscal year.

Kemper Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th will be issued a dividend of $0.32 per share. The ex-dividend date of this dividend is Monday, May 18th. This represents a $1.28 annualized dividend and a dividend yield of 4.2%. Kemper's payout ratio is presently 58.45%.

Kemper Company Profile

Kemper Corporation NYSE: KMPR is a diversified insurance holding company headquartered in Chicago, Illinois. Formed through the rebranding of Unitrin in 2010, Kemper has established a nationwide presence by offering a broad array of property and casualty insurance products. The company distributes its products through independent agents, brokers and direct-to-consumer channels, serving both individual policyholders and commercial clients.

The personal insurance segment provides coverage for automobiles, homeowners, renters and umbrella lines, while the commercial business focuses on liability, workers' compensation and specialty property solutions tailored to small and mid-sized enterprises.

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