Unum Group (NYSE:UNM) Short Interest Update

Key Points

• Unum Group saw a significant rise in short interest, increasing by 2,220.7% from 94,800 to 2,200,000 shares as of July 15th, indicating heightened bearish sentiment among investors.
• The company recently announced an increase in its quarterly dividend from $0.42 to $0.46, reflecting a positive outlook for investors with a current 2.6% dividend yield.
• Despite reporting a missed EPS estimate of $2.07, Unum Group's revenue rose by 4.0% year-over-year to $3.36 billion, suggesting underlying growth amid challenges.

Unum Group (NYSE:UNM - Get Free Report) was the recipient of a significant increase in short interest in July. As of July 15th, there was short interest totaling 2,200,000 shares, anincreaseof2,220.7% from the June 30th total of 94,800 shares. Based on an average daily trading volume, of 1,180,000 shares, the days-to-cover ratio is currently 1.9 days. Currently,1.3% of the shares of the stock are sold short. Currently,1.3% of the shares of the stock are sold short. Based on an average daily trading volume, of 1,180,000 shares, the days-to-cover ratio is currently 1.9 days.

Insider Activity

In other news, EVP Elizabeth Claire Ahmed sold 10,000 shares of the stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $80.00, for a total value of $800,000.00. Following the sale, the executive vice president directly owned 51,170 shares of the company's stock, valued at approximately $4,093,600. This represents a 16.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.92% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Quintet Private Bank Europe S.A. bought a new stake in Unum Group in the second quarter valued at $28,000. Vermillion & White Wealth Management Group LLC bought a new stake in Unum Group in the first quarter valued at $30,000. Atwood & Palmer Inc. boosted its holdings in Unum Group by 100.0% in the second quarter. Atwood & Palmer Inc. now owns 400 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 200 shares in the last quarter. N.E.W. Advisory Services LLC bought a new stake in Unum Group in the first quarter valued at $35,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Unum Group by 196.9% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 478 shares of the financial services provider's stock valued at $39,000 after acquiring an additional 317 shares in the last quarter. 86.57% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. UBS Group set a $87.00 target price on shares of Unum Group and gave the company a "neutral" rating in a research report on Wednesday. Barclays set a $96.00 target price on shares of Unum Group and gave the company an "overweight" rating in a research report on Monday, July 7th. JPMorgan Chase & Co. lifted their target price on shares of Unum Group from $87.00 to $96.00 and gave the company a "neutral" rating in a research report on Tuesday, July 8th. Evercore ISI dropped their target price on shares of Unum Group from $100.00 to $96.00 and set an "outperform" rating for the company in a research report on Wednesday. Finally, Keefe, Bruyette & Woods reissued an "outperform" rating and set a $95.00 price target (down from $100.00) on shares of Unum Group in a research note on Thursday. Five equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $91.62.

Unum Group Trading Down 2.7%

Shares of NYSE UNM traded down $1.92 during mid-day trading on Friday, hitting $69.89. The stock had a trading volume of 1,696,363 shares, compared to its average volume of 1,433,142. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.30 and a current ratio of 0.30. Unum Group has a 1 year low of $51.80 and a 1 year high of $84.48. The business has a 50 day moving average price of $79.91 and a two-hundred day moving average price of $78.49. The firm has a market cap of $12.19 billion, a P/E ratio of 8.37, a price-to-earnings-growth ratio of 1.18 and a beta of 0.41.

Unum Group (NYSE:UNM - Get Free Report) last issued its earnings results on Tuesday, July 29th. The financial services provider reported $2.07 EPS for the quarter, missing the consensus estimate of $2.23 by ($0.16). Unum Group had a return on equity of 13.44% and a net margin of 11.77%. The firm had revenue of $3.36 billion during the quarter, compared to analysts' expectations of $3.35 billion. During the same period in the previous year, the firm earned $2.16 earnings per share. The firm's quarterly revenue was up 4.0% compared to the same quarter last year. On average, equities analysts anticipate that Unum Group will post 9.14 EPS for the current fiscal year.

Unum Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Friday, July 25th will be paid a $0.46 dividend. The ex-dividend date of this dividend is Friday, July 25th. This is a positive change from Unum Group's previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a dividend yield of 2.6%. Unum Group's payout ratio is presently 22.01%.

Unum Group Company Profile

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products.

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