Wall Street Zen Downgrades Kemper (NYSE:KMPR) to Hold

Key Points

• Kemper has been downgraded from a "strong-buy" to a "hold" rating by Wall Street Zen, indicating a shift in analyst sentiment regarding the stock's performance.
• In addition, Piper Sandler reduced its price target for Kemper shares from $75.00 to $50.00, highlighting concerns about the company's outlook.
• Kemper recently reported quarterly earnings of $1.30 per share, missing analysts' estimates, while announcing a share buyback program allowing repurchases of up to $500 million of its stock.

Kemper (NYSE:KMPR - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Other equities research analysts have also recently issued reports about the company. Piper Sandler reissued an "underweight" rating and issued a $50.00 target price (down from $75.00) on shares of Kemper in a research note on Wednesday, August 6th. Cowen reissued a "buy" rating on shares of Kemper in a research note on Thursday, August 7th. Finally, JMP Securities cut their target price on Kemper from $85.00 to $75.00 and set a "market outperform" rating on the stock in a research note on Wednesday, August 6th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $72.40.

Kemper Stock Up 2.6%

KMPR traded up $1.33 during trading on Friday, reaching $52.27. The stock had a trading volume of 1,145,135 shares, compared to its average volume of 552,360. The stock's 50 day moving average is $61.50 and its two-hundred day moving average is $63.03. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $3.28 billion, a price-to-earnings ratio of 9.84 and a beta of 1.27. Kemper has a one year low of $45.02 and a one year high of $73.01.

Kemper (NYSE:KMPR - Get Free Report) last released its earnings results on Tuesday, August 5th. The insurance provider reported $1.30 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 company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.23 billion. During the same period in the prior year, the company posted $1.42 earnings per share. The company's revenue was up 8.5% on a year-over-year basis. As a group, analysts expect that Kemper will post 6.03 earnings per share for the current year.

Kemper announced that its board has approved a stock repurchase plan on Tuesday, August 5th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the insurance provider to purchase up to 12.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Kemper

In other Kemper news, Director Jason N. Gorevic acquired 2,000 shares of the company's stock in a transaction that occurred on Thursday, August 7th. The shares were bought at an average cost of $49.14 per share, with a total value of $98,280.00. Following the completion of the transaction, the director directly owned 22,072 shares of the company's stock, valued at approximately $1,084,618.08. This represents a 9.96% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gerald Laderman bought 3,000 shares of the stock in a transaction on Thursday, August 7th. The stock was purchased at an average cost of $49.37 per share, for a total transaction of $148,110.00. Following the acquisition, the director owned 24,635 shares of the company's stock, valued at $1,216,229.95. This trade represents a 13.87% increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 8,000 shares of company stock valued at $432,845 over the last ninety days. Insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Treasurer of the State of North Carolina raised its stake in shares of Kemper by 0.6% in the fourth quarter. Treasurer of the State of North Carolina now owns 26,630 shares of the insurance provider's stock worth $1,769,000 after buying an additional 160 shares during the period. Federated Hermes Inc. raised its stake in shares of Kemper by 4.8% in the first 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 period. CX Institutional raised its stake in shares of Kemper by 50.3% in the second quarter. CX Institutional now owns 861 shares of the insurance provider's stock worth $56,000 after buying an additional 288 shares during the period. UMB Bank n.a. raised its stake in shares of Kemper by 104.4% in the first quarter. UMB Bank n.a. now owns 650 shares of the insurance provider's stock worth $43,000 after buying an additional 332 shares during the period. Finally, American Century Companies Inc. raised its stake in shares of Kemper by 2.5% in the fourth quarter. American Century Companies Inc. now owns 13,551 shares of the insurance provider's stock worth $900,000 after buying an additional 334 shares during the period. Institutional investors own 86.23% of the company's stock.

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.