Kemper (NYSE:KMPR) Shares Down 4% - What's Next?

Key Points

• Kemper shares fell 4% on Wednesday, trading as low as $27.83 as volume plunged well below normal levels.
• Analyst sentiment remains cautious, with several firms cutting ratings or price targets; the stock’s consensus rating is now “Reduce” with an average target price of $51.75.
• Recent fundamentals were weak: Kemper missed first-quarter earnings and revenue estimates, while its quarterly dividend of $0.32 per share implies a high payout ratio of 206.45%.

Shares of Kemper Corporation (NYSE:KMPR - Get Free Report) traded down 4% on Wednesday . The company traded as low as $27.83 and last traded at $27.4950. Approximately 23,300 shares traded hands during trading, a decline of 98% from the average session volume of 1,060,819 shares. The stock had previously closed at $28.64.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Zacks Research lowered shares of Kemper from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 13th. UBS Group dropped their target price on shares of Kemper from $48.00 to $44.00 and set a "buy" rating on the stock in a research report on Monday, May 11th. Piper Sandler cut their price target on shares of Kemper from $35.00 to $28.00 and set an "underweight" rating on the stock in a research note on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Kemper in a report on Friday, June 12th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, Kemper has an average rating of "Reduce" and a consensus target price of $51.75.

Kemper Price Performance

The company has a current ratio of 0.18, a quick ratio of 0.18 and a debt-to-equity ratio of 0.36. The stock has a 50-day moving average price of $27.42 and a 200 day moving average price of $31.80. The stock has a market capitalization of $1.66 billion, a price-to-earnings ratio of 45.50 and a beta of 1.04.

Kemper (NYSE:KMPR - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The insurance provider reported $0.21 EPS for the quarter, missing the consensus estimate of $0.81 by ($0.60). The business had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.17 billion. Kemper had a net margin of 0.89% and a return on equity of 4.80%. The firm's revenue for the quarter was down 7.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.65 earnings per share. As a group, equities research analysts expect that Kemper Corporation will post 1.94 earnings per share for the current year.

Kemper Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 4.5%. The ex-dividend date was Monday, May 18th. Kemper's dividend payout ratio is 206.45%.

Institutional Investors Weigh In On Kemper

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its position in shares of Kemper by 40.1% in the third quarter. AQR Capital Management LLC now owns 2,780,270 shares of the insurance provider's stock valued at $143,323,000 after acquiring an additional 795,131 shares in the last quarter. Wellington Management Group LLP raised its stake in Kemper by 12.9% in the 3rd quarter. Wellington Management Group LLP now owns 2,776,543 shares of the insurance provider's stock valued at $143,131,000 after purchasing an additional 316,216 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Kemper by 6.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,472,276 shares of the insurance provider's stock valued at $100,227,000 after purchasing an additional 140,539 shares during the last quarter. State Street Corp lifted its holdings in Kemper by 0.5% in the 2nd quarter. State Street Corp now owns 2,212,025 shares of the insurance provider's stock valued at $142,764,000 after purchasing an additional 10,213 shares in the last quarter. Finally, Millennium Management LLC boosted its stake in Kemper by 4.4% during the 4th quarter. Millennium Management LLC now owns 1,164,410 shares of the insurance provider's stock worth $47,205,000 after purchasing an additional 48,750 shares during the last quarter. 86.23% of the stock is currently owned by institutional investors and hedge funds.

Kemper Company Profile

Kemper Corporation NYSE: KMPR is a diversified insurance holding company headquartered in Chicago, Illinois. Formed through the rebranding of Unitrin in 2010, Kemper has established a nationwide presence by offering a broad array of property and casualty insurance products. The company distributes its products through independent agents, brokers and direct-to-consumer channels, serving both individual policyholders and commercial clients.

The personal insurance segment provides coverage for automobiles, homeowners, renters and umbrella lines, while the commercial business focuses on liability, workers' compensation and specialty property solutions tailored to small and mid-sized enterprises.

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