Kemper Corporation (NYSE:KMPR) Short Interest Up 64.1% in August

Key Points

• Kemper Corporation's short interest surged by 64.1% in August, reaching a total of 3,660,000 shares as of August 15th, compared to 2,230,000 shares at the end of July.
• Wall Street analysts expressed mixed opinions on Kemper, with Piper Sandler downgrading its price target to $50.00 and Zacks Research issuing a strong sell rating.
• The company initiated a $500 million share repurchase program, indicating a belief that its shares are undervalued, while also declaring a quarterly dividend of $0.32 per share.

Kemper Corporation (NYSE:KMPR - Get Free Report) was the recipient of a large growth in short interest during the month of August. As of August 15th, there was short interest totaling 3,660,000 shares, agrowthof64.1% from the July 31st total of 2,230,000 shares. Based on an average daily trading volume, of 773,700 shares, the short-interest ratio is presently 4.7 days. Approximately5.9% of the shares of the company are short sold. Approximately5.9% of the shares of the company are short sold. Based on an average daily trading volume, of 773,700 shares, the short-interest ratio is presently 4.7 days.

Wall Street Analyst Weigh In

Several research firms recently weighed in on KMPR. Piper Sandler restated an "underweight" rating and issued a $50.00 price objective (down from $75.00) on shares of Kemper in a research report on Wednesday, August 6th. Wall Street Zen cut shares of Kemper from a "strong-buy" rating to a "hold" rating in a research note on Saturday, August 9th. JMP Securities lowered their price objective on shares of Kemper from $85.00 to $75.00 and set a "market outperform" rating on the stock in a research report on Wednesday, August 6th. Cowen reaffirmed a "buy" rating on shares of Kemper in a report on Thursday, August 7th. Finally, Zacks Research raised Kemper to a "strong sell" rating in a research note on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $72.75.

Insider Transactions at Kemper

In other Kemper news, Director Gerald Laderman purchased 3,000 shares of the stock in a transaction dated Thursday, August 7th. The shares were bought at an average price of $49.37 per share, with a total value of $148,110.00. Following the completion of the transaction, the director directly owned 24,635 shares in the company, valued at approximately $1,216,229.95. This trade represents a 13.87% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Jason N. Gorevic purchased 2,000 shares of Kemper stock in a transaction dated Thursday, August 7th. The stock was bought at an average price of $49.14 per share, with a total value of $98,280.00. Following the completion of the transaction, the director owned 22,072 shares of the company's stock, valued at $1,084,618.08. This represents a 9.96% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders bought 8,000 shares of company stock worth $432,845. 6.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kemper

A number of hedge funds have recently modified their holdings of the company. State of Wyoming grew its stake in shares of Kemper by 4.7% in the second quarter. State of Wyoming now owns 4,431 shares of the insurance provider's stock worth $286,000 after purchasing an additional 199 shares during the last quarter. Federated Hermes Inc. grew its position in shares of Kemper by 4.8% in the 1st quarter. Federated Hermes Inc. now owns 5,688 shares of the insurance provider's stock worth $380,000 after buying an additional 263 shares during the last quarter. CX Institutional grew its position in shares of Kemper by 50.3% in the 2nd quarter. CX Institutional now owns 861 shares of the insurance provider's stock worth $56,000 after buying an additional 288 shares during the last quarter. State Board of Administration of Florida Retirement System increased its stake in shares of Kemper by 0.5% during the second quarter. State Board of Administration of Florida Retirement System now owns 61,635 shares of the insurance provider's stock valued at $3,978,000 after buying an additional 300 shares during the period. Finally, UMB Bank n.a. raised its holdings in shares of Kemper by 104.4% during the first quarter. UMB Bank n.a. now owns 650 shares of the insurance provider's stock valued at $43,000 after acquiring an additional 332 shares in the last quarter. Hedge funds and other institutional investors own 86.23% of the company's stock.

Kemper Trading Down 0.4%

Shares of NYSE:KMPR traded down $0.22 on Friday, reaching $53.95. 1,012,246 shares of the company traded hands, compared to its average volume of 826,568. The stock has a market capitalization of $3.39 billion, a P/E ratio of 10.16 and a beta of 1.30. The business's 50-day simple moving average is $57.72 and its 200 day simple moving average is $61.28. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.32. Kemper has a 52 week low of $45.02 and a 52 week high of $73.01.

Kemper (NYSE:KMPR - Get Free Report) last issued its earnings results on Tuesday, August 5th. The insurance provider reported $1.30 earnings per share for the quarter, missing the consensus estimate of $1.52 by ($0.22). The company had revenue of $1.23 billion for the quarter, compared to analysts' expectations of $1.23 billion. Kemper had a net margin of 7.18% and a return on equity of 14.39%. During the same quarter in the prior year, the company earned $1.42 earnings per share. The company's revenue was up 8.5% compared to the same quarter last year. As a group, equities analysts anticipate that Kemper will post 6.03 EPS for the current fiscal year.

Kemper announced that its Board of Directors has initiated a share repurchase program on Tuesday, August 5th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the insurance provider to buy up to 12.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Kemper Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Shareholders of record on Monday, August 18th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Monday, August 18th. This represents a $1.28 annualized dividend and a yield of 2.4%. Kemper's dividend payout ratio is presently 24.11%.

About Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance.

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