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 increase in short interest in August. As of August 15th, there was short interest totaling 3,660,000 shares, an increase of 64.1% from the July 31st total of 2,230,000 shares. Approximately 5.9% of the company's stock are short sold. Based on an average trading volume of 773,700 shares, the days-to-cover ratio is currently 4.7 days. Based on an average trading volume of 773,700 shares, the days-to-cover ratio is currently 4.7 days. Approximately 5.9% of the company's stock are short sold.

Kemper Stock Performance

NYSE KMPR traded up $0.60 during mid-day trading on Thursday, reaching $53.56. 702,662 shares of the stock were exchanged, compared to its average volume of 755,010. The business's 50 day moving average is $57.09 and its 200-day moving average is $61.04. Kemper has a 1 year low of $45.02 and a 1 year high of $73.01. The company has a market capitalization of $3.36 billion, a P/E ratio of 10.09 and a beta of 1.30. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.21 and a current ratio of 0.21.

Kemper (NYSE:KMPR - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The insurance provider reported $1.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.52 by ($0.22). Kemper had a return on equity of 14.39% and a net margin of 7.18%.The firm had revenue of $1.23 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same period last year, the company posted $1.42 earnings per share. The business's quarterly revenue was up 8.5% on a year-over-year basis. On average, equities research analysts forecast that Kemper will post 6.03 EPS for the current fiscal year.

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

Kemper Announces Dividend

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

Insider Activity at Kemper

In other news, Director Gerald Laderman acquired 3,000 shares of Kemper stock in a transaction that occurred on Thursday, August 7th. The stock was purchased at an average price of $49.37 per share, for a total transaction of $148,110.00. Following the purchase, the director directly owned 24,635 shares in the company, valued at $1,216,229.95. The trade was a 13.87% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Jason N. Gorevic acquired 2,000 shares of Kemper stock in a transaction that occurred on Thursday, August 7th. The shares were purchased at an average price of $49.14 per share, with a total value of $98,280.00. Following the purchase, the director owned 22,072 shares in the company, valued at $1,084,618.08. This represents a 9.96% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Kemper

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KMPR. Northern Trust Corp lifted its holdings in Kemper by 11.2% during the fourth quarter. Northern Trust Corp now owns 554,437 shares of the insurance provider's stock valued at $36,837,000 after purchasing an additional 55,994 shares in the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in Kemper during the fourth quarter valued at $255,000. Ameriprise Financial Inc. lifted its holdings in Kemper by 4.4% during the fourth quarter. Ameriprise Financial Inc. now owns 1,238,284 shares of the insurance provider's stock valued at $82,271,000 after purchasing an additional 52,290 shares in the last quarter. Algert Global LLC lifted its holdings in Kemper by 13.7% during the fourth quarter. Algert Global LLC now owns 16,650 shares of the insurance provider's stock valued at $1,106,000 after purchasing an additional 2,010 shares in the last quarter. Finally, Captrust Financial Advisors lifted its holdings in Kemper by 83.5% during the fourth quarter. Captrust Financial Advisors now owns 7,121 shares of the insurance provider's stock valued at $473,000 after purchasing an additional 3,240 shares in the last quarter. 86.23% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Piper Sandler reaffirmed an "underweight" rating and issued a $50.00 price objective (down from $75.00) on shares of Kemper in a report on Wednesday, August 6th. JMP Securities dropped their price objective on shares of Kemper from $85.00 to $75.00 and set a "market outperform" rating on the stock in a report on Wednesday, August 6th. Wall Street Zen downgraded shares of Kemper from a "strong-buy" rating to a "hold" rating in a report on Saturday, August 9th. Cowen reaffirmed a "buy" rating on shares of Kemper in a report on Thursday, August 7th. Finally, Zacks Research raised shares of Kemper to a "strong sell" rating in a report on Monday, August 11th. One 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. Based on data from MarketBeat, Kemper presently has an average rating of "Moderate Buy" and a consensus price target of $72.75.

Kemper Company Profile

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.