Kemper (NYSE:KMPR) Reaches New 12-Month Low on Disappointing Earnings

Key Points

• Kemper Corporation's stock hit a new 52-week low of $45.02 after reporting quarterly earnings of $1.30 per share, missing expectations by $0.22.
• The company announced a quarterly dividend of $0.32 per share, representing an annualized yield of 2.7% and a payout ratio of 23.93%.
• A recent share buyback plan allows Kemper to repurchase $500 million worth of stock, indicating management's confidence that shares are undervalued.

Kemper Corporation (NYSE:KMPR - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $45.02 and last traded at $47.42, with a volume of 932176 shares. The stock had previously closed at $61.49.

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 analyst estimates of $1.23 billion. Kemper had a return on equity of 15.02% and a net margin of 7.38%. Kemper's revenue for the quarter was up 8.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.42 earnings per share.

Kemper Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Monday, August 18th will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.7%. Kemper's dividend payout ratio (DPR) is presently 23.93%.

Kemper announced that its board has approved a share buyback 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 stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research firms have recently commented on KMPR. Piper Sandler restated an "underweight" rating and set a $50.00 target price (down from $75.00) on shares of Kemper in a research report on Wednesday. Wall Street Zen lowered shares of Kemper from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. One investment analyst has rated the stock with a sell rating, four have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $74.40.

Insider Transactions at Kemper

In other Kemper news, Director Alberto J. Paracchini bought 500 shares of the firm's stock in a transaction on Tuesday, June 10th. The shares were acquired at an average cost of $61.71 per share, with a total value of $30,855.00. Following the purchase, the director directly owned 10,323 shares of the company's stock, valued at $637,032.33. This trade represents a 5.09% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Gerald Laderman bought 2,500 shares of the firm's stock in a transaction on Tuesday, June 10th. The stock was acquired at an average cost of $62.24 per share, for a total transaction of $155,600.00. Following the completion of the purchase, the director directly owned 21,635 shares in the company, valued at approximately $1,346,562.40. This represents a 13.07% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Treasurer of the State of North Carolina lifted its stake in Kemper by 0.6% in the 4th quarter. Treasurer of the State of North Carolina now owns 26,630 shares of the insurance provider's stock worth $1,769,000 after purchasing an additional 160 shares in the last quarter. Pictet Asset Management Holding SA lifted its stake in Kemper by 2.6% in the 4th quarter. Pictet Asset Management Holding SA now owns 8,232 shares of the insurance provider's stock worth $547,000 after purchasing an additional 206 shares in the last quarter. Federated Hermes Inc. lifted its stake in 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 purchasing an additional 263 shares in the last quarter. CX Institutional lifted its stake in Kemper by 50.3% in the 2nd quarter. CX Institutional now owns 861 shares of the insurance provider's stock worth $56,000 after purchasing an additional 288 shares in the last quarter. Finally, UMB Bank n.a. lifted its stake in Kemper by 104.4% in the 1st quarter. UMB Bank n.a. now owns 650 shares of the insurance provider's stock worth $43,000 after purchasing an additional 332 shares in the last quarter. 86.23% of the stock is owned by hedge funds and other institutional investors.

Kemper Price Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.22 and a current ratio of 0.22. The stock's 50 day simple moving average is $62.58 and its two-hundred day simple moving average is $63.47. The firm has a market capitalization of $3.07 billion, a PE ratio of 8.96 and a beta of 1.27.

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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