Kemper (NYSE:KMPR) Shares Gap Down on Analyst Downgrade

Key Points

• Kemper's stock gapped down from $50.37 to $49.04 after Raymond James Financial downgraded it to a market perform rating, reducing its target price to $60.00.
• Directors Gerald Laderman and Jason N. Gorevic recently increased their holdings by purchasing additional shares at prices around $49, indicating insider confidence despite the downgrade.
• The company also declared a quarterly dividend of $0.32, with a current dividend yield of 2.8%, and initiated a stock buyback plan to repurchase up to $500 million in shares.

Kemper Corporation (NYSE:KMPR - Get Free Report) gapped down prior to trading on Wednesday after Raymond James Financial downgraded the stock from an outperform rating to a market perform rating. The stock had previously closed at $50.37, but opened at $49.04. Raymond James Financial now has a $60.00 price target on the stock. Kemper shares last traded at $48.08, with a volume of 167,580 shares changing hands.

Several other research firms have also recently issued reports on KMPR. Wall Street Zen cut Kemper from a "strong-buy" rating to a "hold" rating in a research note on Saturday, August 9th. Cowen reissued a "buy" rating on shares of Kemper in a research note on Thursday, August 7th. JMP Securities cut their target price on Kemper from $85.00 to $75.00 and set a "market outperform" rating for the company in a research note on Wednesday, August 6th. Weiss Ratings reissued a "hold (c)" rating on shares of Kemper in a research note on Wednesday, October 8th. Finally, Piper Sandler reissued an "underweight" rating and set a $50.00 target price (down previously from $75.00) on shares of Kemper in a research note on Wednesday, August 6th. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Kemper has an average rating of "Hold" and a consensus target price of $67.25.

Insiders Place Their Bets

In related news, Director Gerald Laderman bought 3,000 shares of the firm's stock in a transaction that occurred 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 completion of the acquisition, 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jason N. Gorevic bought 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, with a total value of $98,280.00. Following the completion of the acquisition, the director owned 22,072 shares of the company's stock, valued at $1,084,618.08. This trade represents a 9.96% increase in their position. The disclosure for this purchase can be found here. Company insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. CX Institutional purchased a new stake in Kemper during the 1st quarter worth about $38,000. CENTRAL TRUST Co purchased a new stake in Kemper during the 1st quarter worth about $44,000. Bayforest Capital Ltd purchased a new stake in Kemper during the 1st quarter worth about $44,000. IFP Advisors Inc lifted its holdings in shares of Kemper by 651.6% in the 2nd quarter. IFP Advisors Inc now owns 699 shares of the insurance provider's stock valued at $45,000 after purchasing an additional 606 shares during the last quarter. Finally, Allworth Financial LP lifted its holdings in shares of Kemper by 68.8% in the 1st quarter. Allworth Financial LP now owns 883 shares of the insurance provider's stock valued at $59,000 after purchasing an additional 360 shares during the last quarter. 86.23% of the stock is currently owned by hedge funds and other institutional investors.

Kemper Price Performance

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 firm has a market capitalization of $2.90 billion, a PE ratio of 8.70 and a beta of 1.25. The company has a fifty day moving average price of $52.11 and a two-hundred day moving average price of $58.41.

Kemper (NYSE:KMPR - Get Free Report) last posted its earnings results on Tuesday, August 5th. The insurance provider reported $1.30 earnings per share 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 analysts' expectations of $1.23 billion. During the same period in the previous year, the firm posted $1.42 earnings per share. The firm's revenue for the quarter was up 8.5% on a year-over-year basis. Sell-side analysts forecast that Kemper Corporation will post 6.03 earnings per share for the current year.

Kemper Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Monday, August 18th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.8%. The ex-dividend date was Monday, August 18th. Kemper's payout ratio is 24.11%.

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

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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