Kemper (NYSE:KMPR) Lowered to "Market Perform" Rating by Raymond James Financial

Key Points

• Raymond James Financial has downgraded Kemper from an "outperform" rating to a "market perform" rating, with a price target set at $60.00, suggesting a potential upside of 29.52% from the current price.
• Kemper reported a miss in earnings for the last quarter, with EPS of $1.30 instead of the expected $1.52, though revenue increased by 8.5% year-over-year.
• Insider activity has increased, with two directors acquiring shares recently, indicating a potential lack of confidence in the stock’s value from an external perspective.

Kemper (NYSE:KMPR - Get Free Report) was downgraded by analysts at Raymond James Financial from an "outperform" rating to a "market perform" rating in a research report issued on Wednesday, Marketbeat reports. They presently have a $60.00 price objective on the insurance provider's stock. Raymond James Financial's target price would indicate a potential upside of 29.52% from the stock's current price.

A number of other research firms also recently weighed in on KMPR. Weiss Ratings restated a "hold (c)" rating on shares of Kemper in a research note on Wednesday, October 8th. Zacks Research upgraded shares of Kemper from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 7th. Cowen reiterated a "buy" rating on shares of Kemper in a research report on Thursday, August 7th. Wall Street Zen downgraded shares of Kemper from a "strong-buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, JMP Securities cut their target price 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. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Kemper has a consensus rating of "Hold" and an average target price of $67.25.

Kemper Stock Performance

NYSE:KMPR traded down $4.05 during mid-day trading on Wednesday, reaching $46.33. 692,482 shares of the company's stock were exchanged, compared to its average volume of 633,871. 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 has a one year low of $45.02 and a one year high of $73.01. The firm has a market capitalization of $2.91 billion, a PE ratio of 8.70 and a beta of 1.25. The business's fifty day simple moving average is $52.11 and its two-hundred day simple moving average is $58.41.

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 the consensus estimate of $1.52 by ($0.22). Kemper had a net margin of 7.18% and a return on equity of 14.39%. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the business earned $1.42 earnings per share. Kemper's quarterly revenue was up 8.5% compared to the same quarter last year. Analysts anticipate that Kemper will post 6.03 earnings per share for the current fiscal year.

Kemper announced that its Board of Directors has authorized a stock buyback plan on Tuesday, August 5th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to purchase up to 12.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, Director Gerald Laderman acquired 3,000 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were bought at an average cost of $49.37 per share, for a total transaction of $148,110.00. Following the completion of the transaction, the director owned 24,635 shares in the company, valued at approximately $1,216,229.95. This trade represents a 13.87% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jason N. Gorevic acquired 2,000 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was bought at an average price of $49.14 per share, for a total transaction 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. The trade was a 9.96% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.76% of the company's stock.

Institutional Trading of Kemper

Several hedge funds and other institutional investors have recently bought and sold shares of KMPR. AQR Capital Management LLC boosted its stake in Kemper by 57.7% in the second quarter. AQR Capital Management LLC now owns 1,985,139 shares of the insurance provider's stock worth $127,783,000 after buying an additional 726,295 shares in the last quarter. Boston Partners boosted its stake in shares of Kemper by 19.3% during the second quarter. Boston Partners now owns 1,508,352 shares of the insurance provider's stock valued at $97,026,000 after purchasing an additional 244,391 shares during the period. MetLife Investment Management LLC boosted its stake in shares of Kemper by 673.8% during the first quarter. MetLife Investment Management LLC now owns 262,650 shares of the insurance provider's stock valued at $17,558,000 after purchasing an additional 228,707 shares during the period. Assenagon Asset Management S.A. purchased a new stake in shares of Kemper during the second quarter valued at approximately $12,819,000. Finally, Qube Research & Technologies Ltd boosted its stake in shares of Kemper by 54.3% during the second quarter. Qube Research & Technologies Ltd now owns 536,281 shares of the insurance provider's stock valued at $34,612,000 after purchasing an additional 188,641 shares during the period. Hedge funds and other institutional investors own 86.23% of the company's stock.

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.

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