Horace Mann Educators (NYSE:HMN) Sets New 1-Year High on Earnings Beat

Key Points

• Horace Mann Educators' stock reached a new 52-week high of $44.61 following a robust earnings report, where it reported $1.06 EPS, significantly surpassing the estimate of $0.61.
• The company announced a quarterly dividend of $0.35 per share, providing an annualized yield of 3.2% and a payout ratio of 41.42%.
• Wall Street analysts have a consensus rating of "Moderate Buy", with price targets varying between $45.00 and $48.00, indicating potential for future growth.

Shares of Horace Mann Educators Corporation (NYSE:HMN - Get Free Report) hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $44.61 and last traded at $43.78, with a volume of 55855 shares changing hands. The stock had previously closed at $42.34.

The insurance provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.45. The company had revenue of $302.60 million for the quarter, compared to analyst estimates of $425.35 million. Horace Mann Educators had a net margin of 8.49% and a return on equity of 14.23%. The business's quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.20 earnings per share.

Horace Mann Educators Dividend Announcement

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

Horace Mann Educators announced that its Board of Directors has initiated a share repurchase program on Tuesday, May 13th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the insurance provider to buy up to 3% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts recently issued reports on HMN shares. Raymond James Financial restated a "strong-buy" rating on shares of Horace Mann Educators in a research note on Thursday, May 15th. Piper Sandler lifted their price target 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. Wall Street Zen lowered shares of Horace Mann Educators from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 2nd. Finally, BMO Capital Markets set a $48.00 price target on shares of Horace Mann Educators and gave the stock an "outperform" rating in a research note on Monday, July 28th. Three research 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 company. According to MarketBeat.com, Horace Mann Educators has a consensus rating of "Moderate Buy" and a consensus price target of $46.75.

Insider Buying and Selling at Horace Mann Educators

In other Horace Mann Educators news, EVP Bret A. Conklin sold 4,760 shares of the business's stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $42.90, for a total transaction of $204,204.00. Following the completion of the sale, the executive vice president owned 58,587 shares in the company, valued at $2,513,382.30. The trade was a 7.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Marita Zuraitis sold 5,000 shares of the business's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $42.28, for a total transaction of $211,400.00. Following the sale, the chief executive officer owned 302,155 shares of the company's stock, valued at approximately $12,775,113.40. The trade was a 1.63% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 51,198 shares of company stock worth $2,210,975 over the last 90 days. Insiders own 4.00% of the company's stock.

Institutional Trading of Horace Mann Educators

Institutional investors have recently added to or reduced their stakes in the business. Bank of Montreal Can boosted its holdings in shares of Horace Mann Educators by 2.1% during the fourth quarter. Bank of Montreal Can now owns 13,269 shares of the insurance provider's stock valued at $521,000 after acquiring an additional 272 shares during the period. PNC Financial Services Group Inc. boosted its holdings in shares of Horace Mann Educators by 4.0% during the first quarter. PNC Financial Services Group Inc. now owns 8,478 shares of the insurance provider's stock valued at $362,000 after acquiring an additional 325 shares during the period. Martingale Asset Management L P boosted its holdings in shares of Horace Mann Educators by 0.7% during the first quarter. Martingale Asset Management L P now owns 48,332 shares of the insurance provider's stock valued at $2,065,000 after acquiring an additional 340 shares during the period. Natixis Advisors LLC boosted its holdings in shares of Horace Mann Educators by 1.7% during the first quarter. Natixis Advisors LLC now owns 22,275 shares of the insurance provider's stock valued at $952,000 after acquiring an additional 370 shares during the period. Finally, Exchange Traded Concepts LLC boosted its holdings in shares of Horace Mann Educators by 1.9% during the second quarter. Exchange Traded Concepts LLC now owns 19,532 shares of the insurance provider's stock valued at $839,000 after acquiring an additional 372 shares during the period. Institutional investors own 99.28% of the company's stock.

Horace Mann Educators Trading Up 1.6%

The company has a market cap of $1.79 billion, a price-to-earnings ratio of 13.05 and a beta of 0.27. The firm's fifty day moving average price is $42.14 and its 200-day moving average price is $41.56. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.09 and a quick ratio of 0.09.

About Horace Mann Educators

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.