MetLife (NYSE:MET) Reaches New 12-Month High Following Better-Than-Expected Earnings

Key Points

• MetLife shares reached a new 52-week high of $100.93 after the company reported quarterly EPS of $2.43, exceeding analysts’ $2.30 consensus. Revenue rose 10.5% year over year to $19.07 billion, although it fell short of the $19.67 billion estimate.
• The company announced a quarterly dividend of $0.5925 per share, equivalent to a 2.4% annualized yield, and authorized a $3 billion share-repurchase program covering up to 4.8% of outstanding shares.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $100.71; institutional investors own approximately 94.99% of MetLife’s shares.

MetLife, Inc. (NYSE:MET - Get Free Report)'s share price hit a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $100.93 and last traded at $99.6820, with a volume of 419120 shares. The stock had previously closed at $96.26.

The financial services provider reported $2.43 EPS for the quarter, topping analysts' consensus estimates of $2.30 by $0.13. MetLife had a net margin of 4.66% and a return on equity of 22.60%. The business had revenue of $19.07 billion for the quarter, compared to the consensus estimate of $19.67 billion. During the same period in the previous year, the firm earned $2.02 EPS. The business's revenue for the quarter was up 10.5% on a year-over-year basis.

MetLife Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 4th will be issued a $0.5925 dividend. The ex-dividend date is Tuesday, August 4th. This represents a $2.37 dividend on an annualized basis and a dividend yield of 2.4%. MetLife's dividend payout ratio is presently 45.93%.

MetLife declared that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the financial services provider to buy up to 4.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

MET has been the subject of a number of research reports. Wall Street Zen lowered MetLife from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Keefe, Bruyette & Woods increased their price target on shares of MetLife from $98.00 to $105.00 and gave the stock an "outperform" rating in a research report on Monday, July 13th. JPMorgan Chase & Co. raised their price target on shares of MetLife from $96.00 to $106.00 and gave the stock an "overweight" rating in a report on Tuesday, July 21st. Mizuho upped their price objective on shares of MetLife from $95.00 to $102.00 and gave the company an "outperform" rating in a research note on Thursday, July 9th. Finally, Weiss Ratings upgraded shares of MetLife from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $100.71.

Hedge Funds Weigh In On MetLife

Several institutional investors have recently bought and sold shares of the stock. Activest Wealth Management increased its holdings in shares of MetLife by 205.8% during the 4th quarter. Activest Wealth Management now owns 315 shares of the financial services provider's stock worth $25,000 after purchasing an additional 212 shares during the period. Garton & Associates Financial Advisors LLC acquired a new stake in shares of MetLife during the 4th quarter worth approximately $30,000. Sound Income Strategies LLC grew its holdings in shares of MetLife by 58.9% during the 4th quarter. Sound Income Strategies LLC now owns 383 shares of the financial services provider's stock worth $29,000 after purchasing an additional 142 shares in the last quarter. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of MetLife during the fourth quarter valued at approximately $31,000. Finally, Prosperity Bancshares Inc acquired a new position in shares of MetLife in the fourth quarter valued at $31,000. 94.99% of the stock is currently owned by institutional investors.

MetLife Stock Up 3.5%

The firm has a market capitalization of $64.13 billion, a price-to-earnings ratio of 19.33, a price-to-earnings-growth ratio of 0.74 and a beta of 0.78. The business has a 50 day moving average of $89.44 and a 200 day moving average of $80.54. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.20 and a quick ratio of 0.20.

About MetLife

MetLife, Inc is a global provider of insurance, annuities and employee benefit programs. Headquartered in New York City, the company offers a range of risk protection and retirement solutions to individuals, employers and institutional clients. Its core businesses include life insurance, group benefits, retirement products such as annuities, and supplemental health products including dental and disability coverage.

In addition to traditional life and group insurance, MetLife provides workplace benefits and voluntary products distributed through employer-sponsored programs.

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