Employers (NYSE:EIG) Sets New 1-Year High - Here's Why

Key Points

• Employers Holdings reached a new 52-week high, trading as high as $53.51, while its 50-day and 200-day moving averages stood at $49.33 and $47.33, respectively.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $59.00; Truist Financial raised its target to $59.00 and issued a Buy rating.
• The company exceeded quarterly expectations with $0.70 in EPS versus $0.57 forecast and $220.2 million in revenue, while paying a $0.34 quarterly dividend yielding about 2.6%.

Employers Holdings Inc (NYSE:EIG - Get Free Report)'s share price reached a new 52-week high during trading on Monday. The company traded as high as $53.51 and last traded at $51.81, with a volume of 107,727 shares. The stock had previously closed at $52.08.

Wall Street Analyst Weigh In

EIG has been the topic of several research analyst reports. Truist Financial raised their price objective on shares of Employers from $49.00 to $59.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Employers in a report on Tuesday, September 22nd. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $59.00.

Employers Price Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.39 and a current ratio of 0.39. The stock has a market capitalization of $936.76 million, a P/E ratio of 76.33 and a beta of 0.46. The stock has a 50-day simple moving average of $49.33 and a 200 day simple moving average of $47.33.

Employers (NYSE:EIG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.57 by $0.13. The firm had revenue of $220.20 million for the quarter, compared to analysts' expectations of $203.51 million. Employers had a net margin of 0.91% and a return on equity of 1.30%. The business's revenue for the quarter was down 10.6% on a year-over-year basis. During the same period last year, the firm earned $0.48 earnings per share. On average, equities analysts forecast that Employers Holdings Inc will post 2.23 earnings per share for the current fiscal year.

Employers Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Wednesday, August 12th were given a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Wednesday, August 12th. Employers's payout ratio is currently 197.10%.

Institutional Investors Weigh In On Employers

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of Employers in the 2nd quarter valued at approximately $130,258,000. Arrowstreet Capital Limited Partnership increased its position in Employers by 27.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 300,567 shares of the financial services provider's stock worth $12,365,000 after buying an additional 65,100 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Employers during the 2nd quarter worth approximately $6,135,000. Empowered Funds LLC acquired a new stake in Employers during the 2nd quarter valued at $5,344,000. Finally, Principal Financial Group Inc. increased its holdings in shares of Employers by 2.0% in the first quarter. Principal Financial Group Inc. now owns 109,252 shares of the financial services provider's stock valued at $4,495,000 after purchasing an additional 2,123 shares during the last quarter. 80.49% of the stock is currently owned by institutional investors and hedge funds.

Employers Company Profile

Employers Holdings, Inc NYSE: EIG is an insurance holding company specializing in workers' compensation coverage for small and midsize businesses. Through its insurance subsidiaries, the company provides policies designed to cover workplace injuries, related medical expenses, rehabilitation, and wage-replacement benefits.

In addition to underwriting workers' compensation insurance, Employers offers claims management, workplace-safety and loss-control services, risk-management resources, and policyholder support.

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