Horace Mann Educators (NYSE:HMN) Announces Quarterly Earnings Results, Beats Expectations By $0.45 EPS

Key Points

• Horace Mann Educators reported a quarterly earnings per share (EPS) of $1.06, surpassing analyst expectations by $0.45. Revenue for the quarter was $302.60 million, which represents a 6.1% year-over-year increase.
• The company declared a quarterly dividend of $0.35, which provides an annual yield of 3.2% and a payout ratio of 41.42%.
• Horace Mann's Board of Directors also initiated a stock repurchase plan allowing for up to $50 million in share buybacks, indicating management's belief that the stock is undervalued.

Horace Mann Educators (NYSE:HMN - Get Free Report) released its earnings results on Wednesday. The insurance provider reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.45, Zacks reports. Horace Mann Educators had a net margin of 8.49% and a return on equity of 14.23%. The business had revenue of $302.60 million for the quarter, compared to analyst estimates of $425.35 million. During the same period last year, the company posted $0.20 EPS. The business's revenue was up 6.1% on a year-over-year basis.

Horace Mann Educators Trading Up 1.6%

NYSE:HMN traded up $0.70 on Friday, reaching $44.10. The company's stock had a trading volume of 253,802 shares, compared to its average volume of 284,533. Horace Mann Educators has a 1-year low of $33.00 and a 1-year high of $44.64. The business's 50-day moving average price is $42.14 and its two-hundred day moving average price is $41.53. The firm has a market cap of $1.79 billion, a PE ratio of 13.05 and a beta of 0.27. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.09 and a current ratio of 0.09.

Horace Mann Educators Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 16th were issued a $0.35 dividend. The ex-dividend date of this dividend was Monday, June 16th. This represents a $1.40 annualized dividend and a yield of 3.2%. Horace Mann Educators's dividend payout ratio is 41.42%.

Horace Mann Educators declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 13th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 3% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Bret A. Conklin sold 4,760 shares of the company's stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $42.90, for a total transaction of $204,204.00. Following the sale, the executive vice president owned 58,587 shares in the company, valued at $2,513,382.30. This represents a 7.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Marita Zuraitis sold 5,000 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $42.28, for a total transaction of $211,400.00. Following the transaction, the chief executive officer owned 302,155 shares in the company, valued at $12,775,113.40. This represents a 1.63% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 51,198 shares of company stock worth $2,210,975 over the last ninety days. Company insiders own 4.00% of the company's stock.

Institutional Investors Weigh In On Horace Mann Educators

Institutional investors have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Horace Mann Educators by 5.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 138,788 shares of the insurance provider's stock worth $5,930,000 after purchasing an additional 7,542 shares in the last quarter. Jane Street Group LLC boosted its position in Horace Mann Educators by 313.8% during the first quarter. Jane Street Group LLC now owns 91,640 shares of the insurance provider's stock valued at $3,916,000 after buying an additional 69,492 shares during the period. Intech Investment Management LLC grew its holdings in shares of Horace Mann Educators by 8.4% in the first quarter. Intech Investment Management LLC now owns 32,340 shares of the insurance provider's stock worth $1,382,000 after purchasing an additional 2,507 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Horace Mann Educators by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,449 shares of the insurance provider's stock worth $1,045,000 after buying an additional 1,064 shares during the period. Finally, Royal Bank of Canada raised its holdings in Horace Mann Educators by 36.2% during the 1st quarter. Royal Bank of Canada now owns 8,251 shares of the insurance provider's stock valued at $352,000 after buying an additional 2,194 shares during the last quarter. Institutional investors own 99.28% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Wall Street Zen cut shares of Horace Mann Educators from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 2nd. Piper Sandler upped their target price on shares of Horace Mann Educators from $44.00 to $45.00 and gave the stock a "neutral" rating in a research note on Thursday, July 3rd. Raymond James Financial reiterated a "strong-buy" rating on shares of Horace Mann Educators in a report on Thursday, May 15th. Finally, BMO Capital Markets set a $48.00 target price on shares of Horace Mann Educators and gave the stock an "outperform" rating in a research note on Monday, July 28th. Three analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, Horace Mann Educators has an average rating of "Moderate Buy" and an average price target of $46.75.

Horace Mann Educators Company Profile

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters.

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