Stock Traders Purchase High Volume of Put Options on Citizens (NYSE:CIA)

Key Points

• Unusual bearish options activity: Investors purchased 5,030 put options on Citizens, 189% above the typical volume of 1,742 contracts.
• Shares declined 2.3% to $3.54 and remain near their 52-week low of $3.39. Citizens also missed quarterly earnings and revenue expectations, reporting $0.01 EPS versus the $0.07 consensus estimate.
• Insiders have been buying shares, including purchases by a director and the CEO totaling 27,376 shares over 90 days. Analysts maintain a “Moderate Buy” consensus with a $5.50 price target, despite mixed rating changes.

Citizens, Inc. (NYSE:CIA - Get Free Report) saw some unusual options trading on Wednesday. Investors acquired 5,030 put options on the stock. This represents an increase of 189% compared to the typical volume of 1,742 put options.

Citizens Stock Down 2.3%

Shares of CIA stock traded down $0.09 during trading hours on Wednesday, reaching $3.54. 47,945 shares of the company's stock were exchanged, compared to its average volume of 115,705. Citizens has a fifty-two week low of $3.39 and a fifty-two week high of $6.54. The stock has a market capitalization of $197.85 million, a P/E ratio of 16.84 and a beta of 0.43. The business has a fifty day moving average price of $4.01 and a 200-day moving average price of $4.87.

Citizens (NYSE:CIA - Get Free Report) last released its earnings results on Thursday, August 6th. The insurance provider reported $0.01 earnings per share for the quarter, missing analysts' consensus estimates of $0.07 by ($0.06). The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $63.85 million. Citizens had a return on equity of 4.73% and a net margin of 4.55%. As a group, research analysts expect that Citizens will post 0.12 EPS for the current fiscal year.

Insider Transactions at Citizens

In other Citizens news, Director Michael Philip Harwood bought 10,000 shares of the company's stock in a transaction dated Monday, August 31st. The shares were acquired at an average cost of $3.80 per share, with a total value of $38,000.00. Following the completion of the transaction, the director owned 11,096 shares in the company, valued at $42,164.80. The trade was a 912.41% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jon Stenberg bought 12,000 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was acquired at an average cost of $3.65 per share, for a total transaction of $43,800.00. Following the completion of the transaction, the chief executive officer owned 389,574 shares in the company, valued at $1,421,945.10. This represents a 3.18% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have bought 27,376 shares of company stock worth $102,390. Corporate insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Citizens

Hedge funds and other institutional investors have recently made changes to their positions in the business. Squarepoint Ops LLC increased its stake in Citizens by 25.0% in the second quarter. Squarepoint Ops LLC now owns 66,456 shares of the insurance provider's stock valued at $381,000 after acquiring an additional 13,300 shares during the period. Bank of America Corp DE lifted its stake in Citizens by 15.7% during the first quarter. Bank of America Corp DE now owns 42,405 shares of the insurance provider's stock worth $213,000 after purchasing an additional 5,746 shares during the period. Finally, Empowered Funds LLC boosted its holdings in Citizens by 8.3% during the first quarter. Empowered Funds LLC now owns 238,487 shares of the insurance provider's stock valued at $1,200,000 after purchasing an additional 18,244 shares in the last quarter. 13.73% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Weiss Ratings lowered shares of Citizens from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, August 31st. Freedom Broker initiated coverage on Citizens in a report on Monday, August 24th. They set a "buy" rating and a $5.50 target price for the company. Citigroup began coverage on shares of Citizens in a research note on Monday, August 24th. They issued a "buy" rating for the company. Finally, Wall Street Zen raised Citizens from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 29th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $5.50.

About Citizens

Citizens, Inc NYSE: CIA is an insurance holding company headquartered in Austin, Texas. Through its insurance subsidiaries, the company provides life insurance products designed to help individuals and families address final expenses, income protection and other financial needs.

Its product offerings include final expense insurance, ordinary life insurance and other forms of life coverage. Citizens distributes its policies through independent agents and other insurance representatives, serving customers in the United States and selected international markets.

The company traces its history to 1969 and has developed operations in parts of Latin America and the Caribbean in addition to its U.S.

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