Kemper (NYSE:KMPR) Shares Down 6.8% – Should You Sell?

Kemper Corporation (NYSE:KMPR)’s stock price was down 6.8% on Monday . The stock traded as low as $26.55 and last traded at $26.5590. Approximately 193,958 shares were traded during mid-day trading, a decline of 81% from the average session volume of 1,033,695 shares. The stock had previously closed at $28.51.

Key Headlines Impacting Kemper

Here are the key news stories impacting Kemper this week:

• Positive Sentiment: Several company insiders purchased shares near $26, including Director Jason Gorevic, who bought 5,000 shares, Director Gerald Laderman, CFO Bradley Camden and EVP Carl Evans. The cluster of purchases may signal that management considers the valuation attractive. Kemper insider buying report
• Positive Sentiment: UBS maintained a “Buy” rating on Kemper and reduced its price target slightly to $43 from $44. The target remains well above recent trading levels, implying substantial potential upside if the insurer’s results improve. UBS rating on Kemper
• Neutral Sentiment: Kemper’s latest earnings call continues to draw investor attention, with analysts focusing on key questions about the company’s second-quarter performance and outlook. The article does not provide enough detail to determine whether those discussions materially change the investment case. Analyst questions from Kemper’s Q2 earnings call
• Neutral Sentiment: Kemper declared a quarterly dividend of $0.32 per share, or $1.28 annualized, representing a yield of approximately 4.9%. The income appeal is tempered by the company’s negative payout ratio and recent losses.
• Negative Sentiment: Although quarterly EPS of $0.45 exceeded the $0.34 consensus estimate, revenue of $1.09 billion missed the $1.16 billion forecast. Revenue declined 10.8% year over year, while EPS fell from $1.30 in the prior-year quarter, raising concerns about underlying operating momentum.
• Negative Sentiment: Analyst opinion remains unfavorable overall, with a consensus rating of “Reduce” based on three Holds and four Sells. Piper Sandler cut its target to $28, and the stock remains below its 50-day average of $27.33 and 200-day average of $30.24.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Zacks Research lowered Kemper from a “hold” rating to a “strong sell” rating in a research report on Wednesday, May 13th. UBS Group cut their price target on shares of Kemper from $44.00 to $43.00 and set a “buy” rating on the stock in a research report on Monday. Wall Street Zen raised shares of Kemper from a “sell” rating to a “hold” rating in a research note on Saturday. Piper Sandler decreased their price objective on shares of Kemper from $35.00 to $28.00 and set an “underweight” rating for the company in a report on Thursday, May 7th. Finally, Weiss Ratings lowered shares of Kemper from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $43.67.

Kemper Stock Down 0.7%

The company has a market capitalization of $1.54 billion, a P/E ratio of -3.12 and a beta of 1.04. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.43. The firm has a fifty day simple moving average of $27.33 and a 200-day simple moving average of $30.24.

Kemper (NYSE:KMPR) last released its quarterly earnings data on Wednesday, August 5th. The insurance provider reported $0.45 earnings per share 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 quarter in the previous year, the business posted $1.30 EPS. Kemper’s revenue for the quarter was down 10.8% on a year-over-year basis. On average, equities research analysts expect that Kemper Corporation will post 1.93 EPS for the current fiscal year.

Kemper Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 4.9%. The ex-dividend date is Friday, August 21st. Kemper’s dividend payout ratio (DPR) is -15.24%.

Insider Activity at Kemper

In related news, 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, for a total transaction of $105,960.00. Following the completion of the acquisition, the director directly owned 33,365 shares of the company’s stock, valued at $883,838.85. This represents a 13.62% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jason N. Gorevic acquired 5,000 shares of the stock in a transaction dated Monday, August 10th. The shares were bought at an average cost of $25.91 per share, with a total value of $129,550.00. Following the transaction, the director directly owned 31,802 shares of the company’s stock, valued at $823,989.82. This represents a 18.66% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders bought 11,000 shares of company stock worth $288,380. Corporate insiders own 0.61% of the company’s stock.

Institutional Trading of Kemper

A number of institutional investors have recently modified their holdings of KMPR. Huntington National Bank raised its position in Kemper by 187.1% in the 4th quarter. Huntington National Bank now owns 646 shares of the insurance provider’s stock valued at $26,000 after buying an additional 421 shares during the last quarter. Danske Bank A S bought a new position in shares of Kemper during the 3rd quarter worth approximately $36,000. Signaturefd LLC bought a new position in shares of Kemper during the 4th quarter worth approximately $32,000. Rockefeller Capital Management L.P. lifted its position in shares of Kemper by 616.7% in the fourth quarter. Rockefeller Capital Management L.P. now owns 946 shares of the insurance provider’s stock worth $38,000 after purchasing an additional 814 shares in the last quarter. Finally, Farther Finance Advisors LLC lifted its position in shares of Kemper by 11,455.6% in the fourth quarter. Farther Finance Advisors LLC now owns 1,040 shares of the insurance provider’s stock worth $42,000 after purchasing an additional 1,031 shares in the last quarter. 86.23% of the stock is currently owned by institutional investors.

About Kemper

Kemper Corporation (NYSE:KMPR) is a diversified insurance holding company headquartered in Chicago, Illinois. Formed through the rebranding of Unitrin in 2010, Kemper has established a nationwide presence by offering a broad array of property and casualty insurance products. The company distributes its products through independent agents, brokers and direct-to-consumer channels, serving both individual policyholders and commercial clients.

The personal insurance segment provides coverage for automobiles, homeowners, renters and umbrella lines, while the commercial business focuses on liability, workers’ compensation and specialty property solutions tailored to small and mid-sized enterprises.