Kemper (NYSE:KMPR) Shares Gap Up - Here's Why

Key Points

• Kemper shares jumped 10.4%, opening at $31.29 versus a prior close of $29.48 and later trading at $32.72.
• Analyst sentiment remains cautious: Kemper has a consensus “Reduce” rating, with two Buy, two Hold and four Sell ratings, and an average price target of $37.67.
• The insurer exceeded quarterly EPS expectations ($0.45 versus $0.34) but reported lower revenue and a year-over-year earnings decline; it also maintains a quarterly dividend of $0.32 per share, yielding about 3.9%.

Kemper Corporation (NYSE:KMPR - Get Free Report) shares gapped up prior to trading on Thursday. The stock had previously closed at $29.48, but opened at $31.29. Kemper shares last traded at $32.72, with a volume of 37,181 shares.

Analysts Set New Price Targets

KMPR has been the subject of a number of analyst reports. Wall Street Zen raised shares of Kemper from a "sell" rating to a "hold" rating in a research note on Sunday, September 27th. TD Cowen dropped their price target on Kemper from $81.00 to $42.00 and set a "buy" rating on the stock in a research report on Thursday, August 27th. Weiss Ratings downgraded Kemper from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, August 6th. UBS Group cut their price target on Kemper from $44.00 to $43.00 and set a "buy" rating on the stock in a research note on Monday, August 10th. Finally, Zacks Research lowered Kemper from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 20th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, Kemper currently has a consensus rating of "Reduce" and an average price target of $37.67.

Kemper Stock Up 10.4%

The company has a market cap of $1.92 billion, a P/E ratio of -3.87 and a beta of 1.07. The company's 50-day moving average is $27.43 and its two-hundred day moving average is $29.82. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.17 and a quick ratio of 0.17.

Kemper (NYSE:KMPR - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The insurance provider reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.11. Kemper had a positive return on equity of 2.89% and a negative net margin of 10.84%. The business had revenue of $1.09 billion for the quarter, compared to analysts' expectations of $1.16 billion. During the same period in the prior year, the firm posted $1.30 EPS. The firm's quarterly revenue was down 10.8% on a year-over-year basis. As a group, equities analysts predict that Kemper Corporation will post 2.02 earnings per share for the current fiscal year.

Kemper Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 21st were issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend was Friday, August 21st. Kemper's dividend payout ratio is presently -15.24%.

Insider Activity at Kemper

In other Kemper news, EVP Thomas Evans bought 1,000 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was acquired at an average price of $26.53 per share, with a total value of $26,530.00. Following the transaction, the executive vice president owned 91,629 shares in the company, valued at $2,430,917.37. This represents a 1.10% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Gerald Laderman purchased 4,000 shares of Kemper stock in a transaction dated Tuesday, August 11th. The stock was bought at an average price of $26.49 per share, with a total value of $105,960.00. Following the completion of the purchase, the director directly owned 33,365 shares of the company's stock, valued at approximately $883,838.85. This trade represents a 13.62% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 14,000 shares of company stock valued at $367,880 over the last three months. 0.61% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KMPR. Choreo LLC increased its position in Kemper by 9.2% in the third quarter. Choreo LLC now owns 8,977 shares of the insurance provider's stock worth $224,000 after buying an additional 759 shares in the last quarter. D.A. Davidson & CO. increased its holdings in Kemper by 67.8% in the 3rd quarter. D.A. Davidson & CO. now owns 56,375 shares of the insurance provider's stock worth $1,409,000 after acquiring an additional 22,784 shares in the last quarter. Pinnacle Wealth Planning Services Inc. raised its stake in Kemper by 264.0% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,354 shares of the insurance provider's stock worth $34,000 after acquiring an additional 982 shares during the period. IFP Advisors Inc lifted its holdings in Kemper by 47.2% during the third quarter. IFP Advisors Inc now owns 2,114 shares of the insurance provider's stock valued at $53,000 after purchasing an additional 678 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC bought a new position in shares of Kemper in the third quarter worth approximately $275,000. Institutional investors own 86.23% of the company's stock.

About Kemper

Kemper Corporation NYSE: KMPR is an insurance holding company that provides property and casualty insurance products to individuals, families and businesses in the United States. Its operations focus primarily on personal and commercial automobile insurance, along with related coverage designed for customers in specialty and preferred insurance markets.

The company offers products that may include nonstandard and standard auto insurance, homeowners and renters insurance, and other personal insurance solutions.

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