Traders Buy High Volume of Citizens Put Options (NYSE:CIA)

Key Points

• Unusual bearish options activity: Traders bought 3,200 Citizens put options, 50% above the typical volume of 2,127 contracts.
• Analyst sentiment is mixed: Citizens has an average “Hold” rating and a $5.50 price target, with recent ratings ranging from “Buy” to “Strong Sell.”
• Shares remain under pressure: The stock fell to $3.56, near its 12-month low of $3.31, after the company missed quarterly earnings and revenue estimates. Insiders nevertheless purchased 27,376 shares worth about $102,390 during the last quarter.

Citizens, Inc. (NYSE:CIA - Get Free Report) saw some unusual options trading activity on Friday. Stock traders purchased 3,200 put options on the company. This represents an increase of 50% compared to the typical volume of 2,127 put options.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Zacks Research lowered shares of Citizens from a "hold" rating to a "strong sell" rating in a research report on Wednesday, October 7th. Freedom Broker initiated coverage on shares of Citizens in a research note on Monday, August 24th. They set a "buy" rating and a $5.50 price target on the stock. Wall Street Zen upgraded shares of Citizens from a "strong sell" rating to a "sell" rating in a research note on Sunday, October 11th. Weiss Ratings raised shares of Citizens from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 16th. Finally, Citigroup assumed coverage on shares of Citizens in a research report on Monday, August 24th. They set a "buy" rating on the stock. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Citizens currently has an average rating of "Hold" and an average target price of $5.50.

Insider Transactions at Citizens

In other Citizens news, Director Michael Philip Harwood acquired 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, for a total transaction of $38,000.00. Following the completion of the purchase, the director owned 11,096 shares of the company's stock, valued at approximately $42,164.80. This trade represents a 912.41% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Jon Stenberg acquired 12,000 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The shares were acquired at an average cost of $3.65 per share, with a total value of $43,800.00. Following the transaction, the chief executive officer directly owned 389,574 shares in the company, valued at $1,421,945.10. The trade was a 3.18% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 27,376 shares of company stock worth $102,390 over the last quarter. 2.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Citizens

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC raised its position in shares of Citizens by 25.0% in the 2nd 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 increased its position in shares of 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 acquiring an additional 5,746 shares in the last quarter. Finally, Empowered Funds LLC raised its holdings in shares of Citizens by 8.3% during the first quarter. Empowered Funds LLC now owns 238,487 shares of the insurance provider's stock worth $1,200,000 after acquiring an additional 18,244 shares during the period. Institutional investors own 13.73% of the company's stock.

Citizens Stock Performance

Shares of NYSE CIA traded down $0.07 during mid-day trading on Friday, hitting $3.56. 10,576 shares of the stock were exchanged, compared to its average volume of 114,750. Citizens has a twelve month low of $3.31 and a twelve month high of $6.54. The stock's fifty day simple moving average is $3.66 and its two-hundred day simple moving average is $4.72. The company has a market cap of $199.53 million, a P/E ratio of 16.98 and a beta of 0.47.

Citizens (NYSE:CIA - Get Free Report) last released its quarterly 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 business had revenue of $61.90 million for the quarter, compared to analyst estimates of $63.85 million. Citizens had a net margin of 4.55% and a return on equity of 4.73%. As a group, equities research analysts predict that Citizens will post 0.12 earnings per share for the current fiscal year.

About Citizens

Citizens, Inc NYSE: CIA is an insurance holding company headquartered in Austin, Texas. Through its subsidiaries, the company primarily provides life insurance and related products to individuals and families in the United States and selected international markets.

Its product offerings include final-expense and burial insurance, ordinary whole-life and term-life policies, endowment products, and certain accident and health insurance coverage. These products are designed to provide financial protection, death benefits, and other forms of insurance support for policyholders and their beneficiaries.

Citizens has historically served customers in the United States as well as markets in Latin America and Asia.

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