Employers (NYSE:EIG) Sets New 52-Week High - Here's What Happened

Key Points

• Employers Holdings shares reached a new 52-week high, trading as high as $52.60 before closing near $51.30. The stock has gained momentum, with its 50-day and 200-day moving averages at $49.00 and $46.97, respectively.
• Analyst sentiment remains mixed: Truist Financial raised its price target to $59 and maintained a Buy rating, while other analysts rate the stock Hold. The consensus rating is Hold with a $59 average price target.
• The company exceeded quarterly earnings expectations, reporting $0.70 in EPS versus the $0.57 consensus and $220.2 million in revenue. Employers also paid a $0.34 quarterly dividend, equivalent to a 2.7% yield, while institutional investors own 80.49% of the shares.

Employers Holdings Inc (NYSE:EIG - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Monday. The company traded as high as $52.60 and last traded at $51.30, with a volume of 7,737 shares. The stock had previously closed at $51.21.

Wall Street Analyst Weigh In

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

Employers Stock Down 0.1%

The company has a market capitalization of $918.47 million, a PE ratio of 74.11 and a beta of 0.46. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.15. The firm has a 50 day simple moving average of $49.00 and a two-hundred day simple moving average of $46.97.

Employers (NYSE:EIG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.70 EPS for the quarter, topping the consensus estimate of $0.57 by $0.13. Employers had a return on equity of 1.30% and a net margin of 0.91%. The business had revenue of $220.20 million during the quarter, compared to analysts' expectations of $203.51 million. During the same quarter in the prior year, the business earned $0.48 earnings per share. The company's quarterly revenue was down 10.6% compared to the same quarter last year. Research analysts expect that Employers Holdings Inc will post 2.23 EPS for the current year.

Employers Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Wednesday, August 12th were given a dividend of $0.34 per share. The ex-dividend date was Wednesday, August 12th. This represents a $1.36 annualized dividend and a yield of 2.7%. Employers's payout ratio is presently 197.10%.

Hedge Funds Weigh In On Employers

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Employers in the second quarter valued at about $130,258,000. Arrowstreet Capital Limited Partnership increased its stake in shares of Employers by 27.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 300,567 shares of the financial services provider's stock worth $12,365,000 after purchasing an additional 65,100 shares in the last quarter. Azarias Capital Management L.P. raised its holdings in shares of Employers by 102.8% in the first quarter. Azarias Capital Management L.P. now owns 140,180 shares of the financial services provider's stock worth $5,767,000 after acquiring an additional 71,072 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Employers in the 2nd quarter valued at about $6,135,000. Finally, Principal Financial Group Inc. lifted its stake in shares of Employers by 2.0% during 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 buying an additional 2,123 shares during the period. 80.49% of the stock is owned by institutional investors and hedge funds.

Employers Company Profile

Employers Holdings, Inc NYSE: EIG is an insurance holding company that specializes in workers' compensation coverage for small and midsize businesses. Through its insurance subsidiaries, the company provides policies that help employers cover medical expenses, wage replacement, and other costs associated with workplace injuries.

The company focuses primarily on small businesses in lower- to moderate-hazard industries, including retail, professional services, hospitality, construction, and other commercial sectors.

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