Jackson Financial (NYSE:JXN) Trading Up 9.1% on Earnings Beat

Key Points

• Jackson Financial's stock surged 9.1% to $94.29 following a quarterly earnings report that surpassed analysts' expectations, with an EPS of $4.87 compared to the estimated $4.61.
• The company announced a quarterly dividend of $0.80 per share, representing a 3.4% yield, despite having a high dividend payout ratio of 310.68%.
• Analysts have raised their target prices for Jackson Financial, with Barclays setting it at $114.00 and Keefe, Bruyette & Woods at $102.00, reflecting positive sentiment in the market.

Jackson Financial Inc. (NYSE:JXN - Get Free Report)'s share price was up 9.1% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $94.48 and last traded at $94.29. Approximately 347,432 shares traded hands during trading, a decline of 55% from the average daily volume of 769,064 shares. The stock had previously closed at $86.46.

The company reported $4.87 EPS for the quarter, topping analysts' consensus estimates of $4.61 by $0.26. Jackson Financial had a net margin of 1.73% and a return on equity of 14.73%. The business had revenue of ($471.00) million for the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the prior year, the firm earned $5.32 EPS. The company's revenue for the quarter was down 3.3% compared to the same quarter last year.

Jackson Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Monday, September 15th will be issued a $0.80 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.5%. Jackson Financial's dividend payout ratio (DPR) is currently -5,333.33%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on JXN. Barclays raised their price target on shares of Jackson Financial from $108.00 to $114.00 and gave the stock an "overweight" rating in a report on Monday, July 7th. Morgan Stanley set a $91.00 price target on shares of Jackson Financial and gave the stock an "equal weight" rating in a report on Monday, May 19th. Finally, Keefe, Bruyette & Woods raised their target price on shares of Jackson Financial from $100.00 to $102.00 and gave the stock a "market perform" rating in a report on Wednesday, July 9th.

Institutional Investors Weigh In On Jackson Financial

Institutional investors and hedge funds have recently made changes to their positions in the stock. Quarry LP purchased a new stake in shares of Jackson Financial in the 4th quarter valued at approximately $28,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in shares of Jackson Financial by 111.6% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 438 shares of the company's stock valued at $39,000 after acquiring an additional 231 shares during the period. NBC Securities Inc. purchased a new stake in shares of Jackson Financial in the 1st quarter valued at approximately $37,000. Brooklyn Investment Group raised its stake in shares of Jackson Financial by 987.0% in the 1st quarter. Brooklyn Investment Group now owns 500 shares of the company's stock valued at $42,000 after acquiring an additional 454 shares during the period. Finally, Sound Income Strategies LLC raised its stake in shares of Jackson Financial by 1,342.9% in the 2nd quarter. Sound Income Strategies LLC now owns 505 shares of the company's stock valued at $45,000 after acquiring an additional 470 shares during the period. 89.96% of the stock is owned by hedge funds and other institutional investors.

Jackson Financial Stock Up 1.7%

The business's 50 day moving average price is $86.52 and its 200-day moving average price is $84.70. The firm has a market capitalization of $6.46 billion, a PE ratio of 4.71 and a beta of 1.46. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.28 and a current ratio of 0.28.

About Jackson Financial

Jackson Financial Inc, through its subsidiaries, provides suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and payout annuities, as well as registered index-linked annuities and lifetime income solutions.