Unum Group (NYSE:UNM) Sets New 12-Month High – Here’s Why

Unum Group (NYSE:UNM)’s share price reached a new 52-week high on Tuesday . The stock traded as high as $84.48 and last traded at $83.92, with a volume of 166517 shares trading hands. The stock had previously closed at $83.34.

Analysts Set New Price Targets

A number of research analysts recently commented on UNM shares. Raymond James upgraded Unum Group from a “market perform” rating to a “strong-buy” rating and set a $108.00 price objective on the stock in a report on Wednesday, March 5th. Morgan Stanley upped their price target on Unum Group from $80.00 to $84.00 and gave the company an “equal weight” rating in a research note on Friday, February 28th. Barclays raised their price objective on Unum Group from $76.00 to $85.00 and gave the stock an “overweight” rating in a research report on Monday, January 6th. Wells Fargo & Company upped their target price on shares of Unum Group from $81.00 to $91.00 and gave the company an “overweight” rating in a research report on Wednesday, February 19th. Finally, Jefferies Financial Group lifted their price target on shares of Unum Group from $91.00 to $96.00 and gave the company a “buy” rating in a research report on Tuesday, December 10th. Five analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $86.62.

Unum Group Stock Performance

The company’s fifty day moving average price is $77.15 and its two-hundred day moving average price is $70.66. The firm has a market capitalization of $14.83 billion, a PE ratio of 8.86, a price-to-earnings-growth ratio of 1.14 and a beta of 0.74. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.28 and a current ratio of 0.29.

Unum Group (NYSE:UNM) last released its quarterly earnings data on Tuesday, February 4th. The financial services provider reported $2.03 earnings per share for the quarter, missing the consensus estimate of $2.14 by ($0.11). Unum Group had a net margin of 13.81% and a return on equity of 14.91%. As a group, equities analysts expect that Unum Group will post 9.14 earnings per share for the current year.

Unum Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 14th. Shareholders of record on Friday, January 24th were given a $0.42 dividend. The ex-dividend date was Friday, January 24th. This represents a $1.68 dividend on an annualized basis and a yield of 2.00%. Unum Group’s payout ratio is currently 17.74%.

Unum Group declared that its board has approved a stock buyback plan on Tuesday, February 18th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 7.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity at Unum Group

In other news, CEO Richard P. Mckenney sold 50,000 shares of the company’s stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $81.99, for a total value of $4,099,500.00. Following the sale, the chief executive officer now owns 980,637 shares in the company, valued at approximately $80,402,427.63. This represents a 4.85 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Lisa G. Iglesias sold 7,000 shares of Unum Group stock in a transaction dated Monday, March 3rd. The stock was sold at an average price of $82.75, for a total value of $579,250.00. Following the completion of the transaction, the executive vice president now owns 31,284 shares of the company’s stock, valued at $2,588,751. This trade represents a 18.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.93% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Unum Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. Wellington Management Group LLP bought a new stake in Unum Group during the fourth quarter valued at $240,000. 111 Capital acquired a new position in shares of Unum Group in the 4th quarter valued at about $219,000. Wealth Enhancement Advisory Services LLC grew its position in shares of Unum Group by 13.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 39,826 shares of the financial services provider’s stock valued at $2,909,000 after buying an additional 4,859 shares during the last quarter. Total Wealth Planning & Management Inc. acquired a new stake in Unum Group during the fourth quarter worth about $2,189,000. Finally, Jefferies Financial Group Inc. bought a new position in Unum Group in the fourth quarter worth about $4,166,000. 86.57% of the stock is owned by institutional investors and hedge funds.

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.