Kemper (NYSE:KMPR) Trading Down 6% - What's Next?

Key Points

• Kemper shares fell 6% to about $25.78 in midday trading, with volume roughly 80% below the average session level. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: Kemper has an average “Reduce” rating, with one Buy, three Holds and four Sells, and a consensus price target of $43.67. Piper Sandler cut its target to $28 and rated the stock “underweight,” while UBS maintained a Buy rating with a reduced $43 target.
• Kemper beat quarterly EPS expectations, reporting $0.45 versus the $0.34 consensus, but revenue declined 10.8% year over year to $1.09 billion. The company declared a quarterly dividend of $0.32 per share, implying a 5% annualized yield, while insiders bought 14,000 shares during the quarter.

Kemper Corporation (NYSE:KMPR - Get Free Report)'s stock price traded down 6% during mid-day trading on Monday . The company traded as low as $25.82 and last traded at $25.78. 203,903 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 1,030,208 shares. The stock had previously closed at $27.42.

Analyst Ratings Changes

Several research analysts have commented on the stock. UBS Group lowered their price objective on shares of Kemper from $44.00 to $43.00 and set a "buy" rating for the company in a research report on Monday, August 10th. Piper Sandler decreased their price target on Kemper from $35.00 to $28.00 and set an "underweight" rating on the stock in a research note on Thursday, May 7th. Weiss Ratings cut Kemper from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 6th. Wall Street Zen upgraded Kemper from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Zacks Research lowered Kemper from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 13th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Kemper has an average rating of "Reduce" and a consensus target price of $43.67.

Kemper Stock Performance

The firm has a market capitalization of $1.52 billion, a price-to-earnings ratio of -3.06 and a beta of 1.04. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.43. The stock's 50-day moving average is $27.52 and its 200-day moving average is $29.99.

Kemper (NYSE:KMPR - Get Free Report) last issued its earnings results on Wednesday, August 5th. The insurance provider reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.11. The firm had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.16 billion. Kemper had a negative net margin of 10.84% and a positive return on equity of 2.89%. The company's quarterly revenue was down 10.8% on a year-over-year basis. During the same quarter last year, the business posted $1.30 earnings per share. On average, analysts predict that Kemper Corporation will post 1.97 EPS for the current fiscal year.

Kemper Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be given a dividend of $0.32 per share. The ex-dividend date is Friday, August 21st. This represents a $1.28 dividend on an annualized basis and a yield of 5.0%. Kemper's payout ratio is currently -15.24%.

Insiders Place Their Bets

In other news, Director Jason N. Gorevic bought 5,000 shares of the company's stock in a transaction on Monday, August 10th. The stock was purchased at an average cost of $25.91 per share, for a total transaction of $129,550.00. Following the completion of the transaction, the director owned 31,802 shares of the company's stock, valued at $823,989.82. This trade represents a 18.66% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Bradley T. Camden bought 1,000 shares of the company's stock in a transaction on Tuesday, August 11th. The stock was purchased at an average price of $26.34 per share, with a total value of $26,340.00. Following the completion of the transaction, the chief financial officer directly owned 51,259 shares of the company's stock, valued at approximately $1,350,162.06. The trade was a 1.99% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 14,000 shares of company stock worth $367,880. Company insiders own 0.61% of the company's stock.

Institutional Investors Weigh In On Kemper

Several hedge funds have recently added to or reduced their stakes in KMPR. Bank of America Corp DE bought a new stake in Kemper during the 2nd quarter worth approximately $20,800,000. Freestone Grove Partners LP acquired a new position in shares of Kemper during the second quarter worth $1,807,000. Man Group plc acquired a new position in shares of Kemper during the second quarter worth $7,666,000. Jupiter Topco LLC acquired a new position in shares of Kemper during the second quarter worth $665,000. Finally, Hsbc Holdings PLC bought a new stake in shares of Kemper in the second quarter worth $2,093,000. 86.23% of the stock is currently owned by institutional investors and hedge funds.

About Kemper

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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