Kemper Corporation (NYSE:KMPR) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts recommend "Reduce" — nine analysts give Kemper an average rating of "Reduce" (4 sell, 3 hold, 2 buy) with a one-year consensus target of $54.50.
• Recent earnings missed expectations — Kemper reported $0.25 EPS vs. a $0.85 consensus and $1.13B revenue vs. $1.22B, with quarterly revenue down 4.7% year-over-year, signaling near-term operational weakness.
• Market snapshot and income — shares trade around $32 (52-week range $28.41–$66.13) with a $1.88B market cap and a 4.0% dividend yield ($0.32 quarterly) and a payout ratio of ~58%.

Shares of Kemper Corporation (NYSE:KMPR - Get Free Report) have earned an average recommendation of "Reduce" from the nine research firms that are presently covering the company, MarketBeat.com reports. Four equities research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $54.50.

Several research analysts have recently issued reports on KMPR shares. Wall Street Zen downgraded shares of Kemper from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Citigroup downgraded shares of Kemper to a "market perform" rating in a research note on Thursday, February 5th. UBS Group dropped their target price on shares of Kemper from $56.00 to $48.00 and set a "buy" rating on the stock in a research note on Wednesday, April 8th. Zacks Research downgraded shares of Kemper from a "hold" rating to a "strong sell" rating in a research note on Monday, February 23rd. Finally, Weiss Ratings cut shares of Kemper from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, March 17th.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC raised its holdings in shares of Kemper by 40.1% during the third quarter. AQR Capital Management LLC now owns 2,780,270 shares of the insurance provider's stock valued at $143,323,000 after purchasing an additional 795,131 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of Kemper by 12.9% during the third quarter. Wellington Management Group LLP now owns 2,776,543 shares of the insurance provider's stock valued at $143,131,000 after purchasing an additional 316,216 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Kemper by 6.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,472,276 shares of the insurance provider's stock valued at $100,227,000 after purchasing an additional 140,539 shares during the last quarter. State Street Corp raised its holdings in shares of Kemper by 0.5% during the second quarter. State Street Corp now owns 2,212,025 shares of the insurance provider's stock valued at $142,764,000 after purchasing an additional 10,213 shares during the last quarter. Finally, Lakewood Capital Management LP raised its holdings in shares of Kemper by 13.7% during the third quarter. Lakewood Capital Management LP now owns 1,181,090 shares of the insurance provider's stock valued at $60,885,000 after purchasing an additional 142,000 shares during the last quarter. 86.23% of the stock is owned by hedge funds and other institutional investors.

Kemper Trading Up 2.9%

Shares of NYSE KMPR opened at $32.05 on Tuesday. The firm's 50 day moving average price is $31.61 and its 200-day moving average price is $38.42. The company has a market cap of $1.88 billion, a PE ratio of 14.63 and a beta of 1.14. Kemper has a 52-week low of $28.41 and a 52-week high of $66.13. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.18 and a current ratio of 0.18.

Kemper (NYSE:KMPR - Get Free Report) last issued its earnings results on Wednesday, February 4th. The insurance provider reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.85 by ($0.60). The firm had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.22 billion. Kemper had a return on equity of 8.02% and a net margin of 2.99%.The company's quarterly revenue was down 4.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.78 EPS. On average, equities research analysts expect that Kemper will post 6.03 EPS for the current fiscal year.

Kemper Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 3rd. Stockholders of record on Tuesday, February 17th were issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend was Tuesday, February 17th. Kemper's payout ratio is presently 58.45%.

About Kemper

Kemper Corporation NYSE: KMPR is a diversified insurance holding company headquartered in Chicago, Illinois. Formed through the rebranding of Unitrin in 2010, Kemper has established a nationwide presence by offering a broad array of property and casualty insurance products. The company distributes its products through independent agents, brokers and direct-to-consumer channels, serving both individual policyholders and commercial clients.

The personal insurance segment provides coverage for automobiles, homeowners, renters and umbrella lines, while the commercial business focuses on liability, workers' compensation and specialty property solutions tailored to small and mid-sized enterprises.

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