Piper Sandler Reaffirms Underweight Rating for Kemper (NYSE:KMPR)

Key Points

• Piper Sandler has reaffirmed an "underweight" rating for Kemper, lowering its target price from $75.00 to $50.00, suggesting a potential downside of 18.85% from the current stock price.
• Kemper's stock price increased by 1.2%, opening at $61.61, with a reported quarterly earnings miss of $1.30 per share compared to analysts' expectations of $1.52.
• The company has authorized a $500 million share buyback program, indicating that management believes the stock is undervalued, as it allows repurchase of up to 12.8% of outstanding shares.

Kemper (NYSE:KMPR - Get Free Report)'s stock had its "underweight" rating reiterated by analysts at Piper Sandler in a research note issued on Wednesday, MarketBeat reports. They presently have a $50.00 target price on the insurance provider's stock, down from their previous target price of $75.00. Piper Sandler's target price suggests a potential downside of 18.85% from the company's current price.

Separately, Wall Street Zen downgraded Kemper from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. One analyst has rated the stock with a sell rating, four have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $74.40.

Kemper Stock Up 1.2%

Shares of KMPR opened at $61.61 on Wednesday. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.32. Kemper has a fifty-two week low of $53.57 and a fifty-two week high of $73.01. The firm has a market cap of $3.94 billion, a PE ratio of 11.52 and a beta of 1.27. The company's fifty day moving average is $62.58 and its two-hundred day moving average is $63.47.

Kemper (NYSE:KMPR - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The insurance provider reported $1.30 earnings per share for the quarter, missing analysts' consensus estimates of $1.52 by ($0.22). Kemper had a return on equity of 15.02% and a net margin of 7.38%. The business had revenue of $1.23 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same period last year, the company posted $1.42 earnings per share. The firm's revenue for the quarter was up 8.5% on a year-over-year basis. Analysts forecast that Kemper will post 6.03 earnings per share for the current year.

Kemper declared that its Board of Directors has authorized a share buyback program 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 shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other Kemper news, Director Gerald Laderman bought 2,500 shares of Kemper stock in a transaction dated Tuesday, June 10th. The stock was bought at an average price of $62.24 per share, for a total transaction of $155,600.00. Following the completion of the acquisition, the director directly owned 21,635 shares of the company's stock, valued at approximately $1,346,562.40. This trade represents a 13.07% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Alberto J. Paracchini purchased 500 shares of Kemper stock in a transaction dated Tuesday, June 10th. The shares were purchased at an average price of $61.71 per share, with a total value of $30,855.00. Following the completion of the acquisition, the director owned 10,323 shares in the company, valued at $637,032.33. The trade was a 5.09% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.76% of the stock is owned by insiders.

Institutional Trading of Kemper

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. American Century Companies Inc. raised its stake in Kemper by 2.5% during the fourth quarter. American Century Companies Inc. now owns 13,551 shares of the insurance provider's stock worth $900,000 after acquiring an additional 334 shares in the last quarter. LPL Financial LLC increased its position in shares of Kemper by 16.2% in the 4th quarter. LPL Financial LLC now owns 11,147 shares of the insurance provider's stock valued at $741,000 after buying an additional 1,556 shares in the last quarter. Pictet Asset Management Holding SA lifted its holdings in shares of Kemper by 2.6% during the 4th quarter. Pictet Asset Management Holding SA now owns 8,232 shares of the insurance provider's stock valued at $547,000 after purchasing an additional 206 shares in the last quarter. Cerity Partners LLC increased its position in shares of Kemper by 52.1% during the fourth quarter. Cerity Partners LLC now owns 20,228 shares of the insurance provider's stock worth $1,335,000 after acquiring an additional 6,929 shares in the last quarter. Finally, Bank of Nova Scotia bought a new stake in shares of Kemper in the 4th quarter valued at about $1,863,000. Institutional investors and hedge funds own 86.23% of the company's stock.

About Kemper

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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