Employers (NYSE:EIG) Stock Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Employers Holdings shares crossed above their 200-day moving average, reaching $50.62 and last trading near $49.43, compared with the moving average of $46.58.
• Analyst sentiment remains cautious but improved: Truist raised its price target to $59 and rated the stock a buy, while other analysts maintained or upgraded it to hold. The consensus rating is Hold with a $59 average price target.
• The company beat quarterly expectations with EPS of $0.70 versus $0.57 expected and revenue of $220.2 million, while declaring a $0.34 quarterly dividend, equivalent to a 2.8% annual yield.

Employers Holdings Inc (NYSE:EIG - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $46.58 and traded as high as $50.62. Employers shares last traded at $49.4250, with a volume of 182,343 shares trading hands.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Truist Financial upped their price target on shares of Employers from $49.00 to $59.00 and gave the company a "buy" rating in a report on Friday, July 31st. Wall Street Zen raised shares of Employers from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Employers in a research report on Tuesday, September 22nd. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $59.00.

Employers Stock Performance

The company has a market capitalization of $887.67 million, a PE ratio of 71.63 and a beta of 0.46. 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's fifty day simple moving average is $49.01 and its 200-day simple moving average is $46.58.

Employers (NYSE:EIG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.13. The company 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 firm's revenue for the quarter was down 10.6% compared to the same quarter last year. During the same period last year, the company earned $0.48 EPS. As a group, equities analysts predict that Employers Holdings Inc will post 2.23 earnings per share for the current year.

Employers Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Investors 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 dividend on an annualized basis and a yield of 2.8%. Employers's dividend payout ratio (DPR) is 197.10%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC increased its stake in Employers by 8.8% in the third quarter. GAMMA Investing LLC now owns 5,035 shares of the financial services provider's stock valued at $240,000 after purchasing an additional 407 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in Employers by 22.9% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,672 shares of the financial services provider's stock worth $80,000 after buying an additional 311 shares during the last quarter. Tidal Investments LLC purchased a new stake in Employers in the 2nd quarter valued at about $714,000. WINTON GROUP Ltd purchased a new stake in Employers in the 2nd quarter valued at about $2,365,000. Finally, Engineers Gate Manager LP increased its stake in shares of Employers by 230.7% during the 2nd quarter. Engineers Gate Manager LP now owns 27,780 shares of the financial services provider's stock valued at $1,402,000 after acquiring an additional 19,380 shares during the last quarter. 80.49% of the stock is currently owned by institutional investors and hedge funds.

About Employers

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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