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

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.

Shares of Jackson Financial Inc. (NYSE:JXN - Get Free Report) rose 9.1% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $94.48 and last traded at $94.29. Approximately 347,432 shares traded hands during mid-day 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. The company had revenue of ($471.00) million for the quarter, compared to analysts' expectations of $1.77 billion. Jackson Financial had a net margin of 1.73% and a return on equity of 14.73%. The firm's revenue was down 3.3% compared to the same quarter last year. During the same quarter last year, the business earned $5.32 EPS.

Jackson Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Monday, September 15th will be paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Monday, September 15th. Jackson Financial's dividend payout ratio (DPR) is -5,333.33%.

Analysts Set New Price Targets

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

Institutional Trading of Jackson Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP bought a new stake in shares of Jackson Financial during the 4th quarter worth approximately $28,000. NBC Securities Inc. purchased a new stake in shares of Jackson Financial during the first quarter valued at $37,000. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in shares of Jackson Financial by 111.6% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 438 shares of the company's stock valued at $39,000 after purchasing an additional 231 shares during the period. Brooklyn Investment Group grew its holdings in shares of Jackson Financial by 987.0% in the first quarter. Brooklyn Investment Group now owns 500 shares of the company's stock worth $42,000 after purchasing an additional 454 shares during the last quarter. Finally, Sound Income Strategies LLC increased its stake in Jackson Financial by 1,342.9% in the 2nd quarter. Sound Income Strategies LLC now owns 505 shares of the company's stock worth $45,000 after buying 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 1.2%

The stock has a market cap of $6.43 billion, a P/E ratio of -1,500.33 and a beta of 1.46. The company's 50 day moving average price is $86.35 and its two-hundred day moving average price is $84.89. The company has a quick ratio of 0.29, a current ratio of 0.28 and a debt-to-equity ratio of 0.46.

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.