Wells Fargo & Company set a $56.00 price target on Unum Group (NYSE:UNM) in a report published on Wednesday morning. The brokerage currently has a hold rating on the financial services provider’s stock.
“We are raising our 2018E EPS to $4.43 from $4.40 to reflect stronger earnings from Unum US in the near term. We are raising our price target to $56 from $53 per share, which is based on applying a 1.3x multiple on our forward 12-month BVPS estimate, ex. accumulated other comprehensive income. Potential impacts from tax reform come in three ways. From a GAAP perspective, tax reform would be highly beneficial to Unum with effectively tax rate going to under 20% (versus the company’s current rate of 31-32%) and a write-down of its deferred tax liability. On a cash basis, tax reform would still be positive but less favorable compared to GAAP due to timing differences in reserves and higher deferred acquisition costs (DAC) taxes being amortized over a longer period. From a capital perspective, UNM would have to write down its deferred tax asset (DTA) on a statutory (STAT) basis.”,” the firm’s analyst wrote.
Other analysts have also issued research reports about the stock. Zacks Investment Research lowered shares of Unum Group from a buy rating to a hold rating in a report on Monday, September 25th. BidaskClub lowered shares of Unum Group from a strong-buy rating to a buy rating in a report on Thursday, August 17th. SunTrust Banks reaffirmed a buy rating and set a $62.00 target price on shares of Unum Group in a report on Friday, October 27th. ValuEngine raised shares of Unum Group from a buy rating to a strong-buy rating in a report on Friday, September 1st. Finally, Royal Bank of Canada reaffirmed a hold rating and set a $51.00 target price on shares of Unum Group in a report on Tuesday, October 10th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. Unum Group has an average rating of Hold and an average target price of $54.00.
Unum Group (NYSE:UNM) last posted its earnings results on Wednesday, October 25th. The financial services provider reported $1.09 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.04 by $0.05. The business had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.82 billion. Unum Group had a net margin of 8.67% and a return on equity of 10.37%. Unum Group’s revenue was up 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.01 EPS. sell-side analysts expect that Unum Group will post 4.21 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, November 17th. Shareholders of record on Monday, October 30th were paid a $0.23 dividend. The ex-dividend date of this dividend was Friday, October 27th. This represents a $0.92 dividend on an annualized basis and a yield of 1.70%. Unum Group’s dividend payout ratio is presently 21.60%.
In other Unum Group news, Director E Michael Caulfield sold 3,814 shares of the business’s stock in a transaction that occurred on Monday, October 30th. The shares were sold at an average price of $52.42, for a total value of $199,929.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Christopher J. Jerome sold 7,849 shares of the business’s stock in a transaction that occurred on Friday, November 17th. The stock was sold at an average price of $53.24, for a total transaction of $417,880.76. The disclosure for this sale can be found here. 0.53% of the stock is owned by insiders.
A number of hedge funds have recently added to or reduced their stakes in the business. BB&T Investment Services Inc. purchased a new stake in shares of Unum Group in the 2nd quarter valued at $100,000. Jacobi Capital Management LLC purchased a new stake in shares of Unum Group in the 2nd quarter valued at $159,000. Invictus RG purchased a new stake in shares of Unum Group in the 3rd quarter valued at $176,000. Keel Point LLC purchased a new stake in shares of Unum Group in the 3rd quarter valued at $202,000. Finally, Schulhoff & Co. Inc. purchased a new stake in shares of Unum Group in the 3rd quarter valued at $204,000. 91.77% of the stock is owned by institutional investors and hedge funds.
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Unum Group Company Profile
Unum Group is a provider of financial protection benefits in the United States and the United Kingdom. The Company’s products include disability, life, accident, critical illness, dental and vision, and other related services. Its segments include Unum US, Unum UK, Colonial Life, Closed Block and Corporate.
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