Insider Selling: Aflac (NYSE:AFL) Major Shareholder Sells 41,700 Shares of Stock

Key Points

• Aflac’s major shareholder, Post Holdings Co. Ltd. Japan, sold 41,700 shares on May 18 at an average price of $118.45, generating about $4.94 million. The sale was made under a pre-arranged Rule 10b5-1 plan.
• The shareholder has been steadily trimming its Aflac stake with multiple recent sales in May and April, though it still owns more than 51.4 million shares valued at roughly $6.1 billion.
• Aflac shares were trading around $117.28, near their 52-week high, while the company also recently reported EPS below estimates but maintained revenue growth and announced a $0.61 quarterly dividend.

Aflac Incorporated (NYSE:AFL - Get Free Report) major shareholder Post Holdings Co. Ltd. Japan sold 41,700 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $118.45, for a total transaction of $4,939,365.00. Following the completion of the sale, the insider owned 51,474,645 shares of the company's stock, valued at $6,097,171,700.25. This trade represents a 0.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Major shareholders that own at least 10% of a company's stock are required to disclose their transactions with the SEC.

Post Holdings Co. Ltd. Japan also recently made the following trade(s):

• On Friday, May 15th, Post Holdings Co. Ltd. Japan sold 23,500 shares of Aflac stock. The stock was sold at an average price of $116.85, for a total transaction of $2,745,975.00.
• On Thursday, May 14th, Post Holdings Co. Ltd. Japan sold 24,500 shares of Aflac stock. The shares were sold at an average price of $116.42, for a total transaction of $2,852,290.00.
• On Wednesday, May 13th, Post Holdings Co. Ltd. Japan sold 24,200 shares of Aflac stock. The shares were sold at an average price of $115.36, for a total transaction of $2,791,712.00.
• On Tuesday, May 12th, Post Holdings Co. Ltd. Japan sold 24,300 shares of Aflac stock. The shares were sold at an average price of $115.97, for a total transaction of $2,818,071.00.
• On Monday, May 11th, Post Holdings Co. Ltd. Japan sold 24,100 shares of Aflac stock. The shares were sold at an average price of $114.85, for a total transaction of $2,767,885.00.
• On Thursday, April 9th, Post Holdings Co. Ltd. Japan sold 86,155 shares of Aflac stock. The shares were sold at an average price of $113.24, for a total transaction of $9,756,192.20.
• On Wednesday, April 8th, Post Holdings Co. Ltd. Japan sold 166,000 shares of Aflac stock. The shares were sold at an average price of $112.38, for a total transaction of $18,655,080.00.
• On Tuesday, April 7th, Post Holdings Co. Ltd. Japan sold 24,200 shares of Aflac stock. The shares were sold at an average price of $110.45, for a total transaction of $2,672,890.00.
• On Monday, April 6th, Post Holdings Co. Ltd. Japan sold 21,500 shares of Aflac stock. The shares were sold at an average price of $110.34, for a total transaction of $2,372,310.00.
• On Thursday, April 2nd, Post Holdings Co. Ltd. Japan sold 20,100 shares of Aflac stock. The shares were sold at an average price of $110.20, for a total transaction of $2,215,020.00.

Aflac Trading Down 1.0%

Shares of NYSE AFL traded down $1.13 during midday trading on Wednesday, reaching $117.28. 2,057,942 shares of the stock were exchanged, compared to its average volume of 2,098,589. The company has a market capitalization of $59.69 billion, a P/E ratio of 13.31, a P/E/G ratio of 2.06 and a beta of 0.62. Aflac Incorporated has a 52-week low of $96.95 and a 52-week high of $119.81. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.26. The stock has a 50 day moving average price of $112.17 and a 200-day moving average price of $111.53.

Aflac (NYSE:AFL - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $1.75 EPS for the quarter, missing analysts' consensus estimates of $1.80 by ($0.05). Aflac had a return on equity of 13.88% and a net margin of 25.60%.The firm had revenue of $4.24 billion for the quarter, compared to analysts' expectations of $4.20 billion. During the same quarter last year, the firm earned $1.66 earnings per share. The business's quarterly revenue was up 27.9% compared to the same quarter last year. Equities research analysts expect that Aflac Incorporated will post 7.12 earnings per share for the current fiscal year.

Aflac Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors 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 yield of 2.1%. The ex-dividend date is Wednesday, May 20th. Aflac's payout ratio is presently 27.70%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on AFL. Barclays set a $99.00 price target on shares of Aflac and gave the company an "underweight" rating in a research report on Thursday, April 30th. Keefe, Bruyette & Woods lifted their price target 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. Weiss Ratings raised shares of Aflac from a "buy (b-)" rating to a "buy (a-)" rating in a research report on Friday, May 15th. UBS Group reduced their price target on shares of Aflac from $116.00 to $114.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Finally, Piper Sandler reduced their price target 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 equities research 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 assigned a Sell rating to the stock. Based on data from MarketBeat, Aflac has an average rating of "Hold" and a consensus price target of $111.36.

Aflac News Summary

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Zacks said the accident and health insurance industry remains attractive, citing benefits from rising underwriting exposure and faster digitalization, which is supportive for Aflac and peers. Article: Zacks Industry Outlook Highlights Aflac, Unum, Globe Life, Trupanion and Employers
• Positive Sentiment: The company’s quarterly dividend of $0.61 per share reinforces its appeal to income investors and may help support the stock.
• Neutral Sentiment: Aflac’s latest earnings call highlighted strength in Japan, suggesting underlying business momentum even though the most recent EPS report missed expectations. Article: Aflac Earnings Call Highlights Japan Surge and Strength
• Negative Sentiment: Insider selling has weighed on sentiment, including a recent $4.9 million sale by insiders and additional share sales by major shareholder Post Holdings Co. Ltd. Japan. Article: Aflac Insiders Sell US$4.9m Of Stock, Possibly Signalling Caution
• Negative Sentiment: Director Thomas Kenny also sold shares, adding to concerns that insiders may be taking profits after the stock’s recent strength. Article: Aflac NYSE: AFL Director Sells $202,831.80 in Stock
• Negative Sentiment: Investors may also stay cautious because Aflac’s last reported EPS missed analyst estimates, even though revenue came in ahead of expectations.

Institutional Trading of Aflac

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Stephens Inc. AR increased its stake in Aflac by 0.4% during the fourth quarter. Stephens Inc. AR now owns 21,945 shares of the financial services provider's stock valued at $2,420,000 after purchasing an additional 91 shares during the last quarter. Compound Planning Inc. grew its position in shares of Aflac by 0.7% during the first quarter. Compound Planning Inc. now owns 13,743 shares of the financial services provider's stock worth $1,508,000 after acquiring an additional 91 shares during the last quarter. Root Financial Partners LLC grew its position in shares of Aflac by 4.5% during the fourth quarter. Root Financial Partners LLC now owns 2,119 shares of the financial services provider's stock worth $234,000 after acquiring an additional 92 shares during the last quarter. CENTRAL TRUST Co grew its position in shares of Aflac by 0.5% during the fourth quarter. CENTRAL TRUST Co now owns 19,088 shares of the financial services provider's stock worth $2,105,000 after acquiring an additional 95 shares during the last quarter. Finally, HBK Sorce Advisory LLC grew its position in shares of Aflac by 1.2% during the fourth quarter. HBK Sorce Advisory LLC now owns 7,702 shares of the financial services provider's stock worth $902,000 after acquiring an additional 95 shares during the last quarter. Institutional investors own 67.44% of the company's stock.

Aflac Company Profile

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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