Unum Group (UNM – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Elyse Greenspan from Wells Fargo maintained a Buy rating on the stock and has a $66.00 price target.
Elyse Greenspan’s rating is based on a comprehensive analysis of Unum Group’s recent financial performance and strategic initiatives. In the first quarter of 2024, Unum Group reported an operating EPS of $2.12, surpassing both Wells Fargo’s estimate of $1.98 and the consensus estimate of $1.97. After considering certain favorable factors, the adjusted EPS stands closer to estimates, indicating a strong underlying performance. The results were primarily bolstered by a positive trend in the group disability segment and an exceptional group life experience. Furthermore, Unum’s long-term care (LTC) results met the company’s expectations and the firm witnessed an improvement in persistency rates across most products, attributed to recent technological initiatives. These factors contribute to the belief in the stock’s potential for a positive reaction.
Despite some areas of concern, such as lower-than-expected variable investment income and a slight decrease in core sales, Greenspan sees a positive outlook for Unum Group. The company’s core premium growth remained robust at 7.1% versus the estimated 5.1%, showcasing strong revenue generation capabilities. Additionally, management has expressed a commitment to increasing the dividend by 15% in the third quarter, which signals confidence in Unum’s financial strength and its ability to provide shareholder value. These aspects, coupled with the company’s solid liquidity levels and the anticipation of favorable group disability and life trends, underpin Greenspan’s Buy rating for Unum Group’s stock.
In another report released yesterday, KBW also assigned a Buy rating to the stock with a $64.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UNM in relation to earlier this year.
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Unum Group (UNM) Company Description:
Unum Group is engaged in providing financial protection benefits. It operates through the following segments: Unum U.S., Unum UK, Colonial Life, Closed Block and Corporate. The Unum U.S. segment comprises of group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. The Unum UK segment offers insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and critical illness products. The Colonial Life segment includes insurance for accident, sickness, disability products, life products, and cancer and critical illness products. The Closed Block segment consists of individual disability, group and individual long-term care, and other insurance products no longer actively marketed. The Corporate segment refers to investment income on corporate assets and other corporate income and expenses not allocated to a line of business; and interest expense on corporate debt other than non-recourse debt. The company was founded in 1848 and is headquartered in Chattanooga, TN.
