Unum Group (NYSE:UNM) Sets New 12-Month High – Still a Buy?

Unum Group (NYSE:UNM) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $95.18 and last traded at $94.9220, with a volume of 88199 shares trading hands. The stock had previously closed at $92.80.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on UNM. Wolfe Research dropped their price target on shares of Unum Group from $102.00 to $100.00 and set an “outperform” rating on the stock in a research note on Monday, July 6th. Morgan Stanley increased their target price on shares of Unum Group from $87.00 to $92.00 and gave the stock an “equal weight” rating in a research report on Monday, August 24th. Wells Fargo & Company raised their target price on Unum Group from $100.00 to $101.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Atlantic Securities set a $88.00 price target on Unum Group in a research report on Wednesday, July 15th. Finally, UBS Group set a $94.00 price target on Unum Group in a research note on Tuesday, July 7th. Eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $99.42.

Unum Group Price Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 0.34 and a quick ratio of 0.34. The stock’s 50 day moving average price is $89.80 and its two-hundred day moving average price is $83.01. The firm has a market capitalization of $15.18 billion, a price-to-earnings ratio of 22.35, a PEG ratio of 1.02 and a beta of 0.27.

Unum Group (NYSE:UNM) last posted its earnings results on Tuesday, July 28th. The financial services provider reported $2.16 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.16. The business had revenue of $3.39 billion for the quarter, compared to analyst estimates of $2.90 billion. Unum Group had a net margin of 5.26% and a return on equity of 12.60%. Unum Group’s revenue was up .3% compared to the same quarter last year. During the same period last year, the business posted $1.92 EPS. Unum Group has set its FY 2026 guidance at 8.600-8.900 EPS. On average, equities research analysts anticipate that Unum Group will post 8.64 EPS for the current year.

Unum Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 24th were paid a $0.505 dividend. The ex-dividend date was Friday, July 24th. This is a boost from Unum Group’s previous quarterly dividend of $0.46. This represents a $2.02 dividend on an annualized basis and a dividend yield of 2.1%. Unum Group’s dividend payout ratio is presently 47.09%.

Unum Group declared that its board has approved a share repurchase program on Wednesday, August 26th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Institutional Trading of Unum Group

Several hedge funds have recently added to or reduced their stakes in UNM. Prosperity Consulting Group LLC increased its position in Unum Group by 1.6% in the 1st quarter. Prosperity Consulting Group LLC now owns 8,157 shares of the financial services provider’s stock worth $596,000 after buying an additional 128 shares during the period. D.A. Davidson & CO. lifted its holdings in shares of Unum Group by 1.9% during the first quarter. D.A. Davidson & CO. now owns 7,922 shares of the financial services provider’s stock worth $579,000 after buying an additional 144 shares during the last quarter. WPG Advisers LLC boosted its position in shares of Unum Group by 12.5% in the second quarter. WPG Advisers LLC now owns 1,301 shares of the financial services provider’s stock valued at $116,000 after acquiring an additional 145 shares during the period. Smartleaf Asset Management LLC boosted its position in shares of Unum Group by 5.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,781 shares of the financial services provider’s stock valued at $218,000 after acquiring an additional 149 shares during the period. Finally, Larson Financial Group LLC boosted its position in shares of Unum Group by 0.4% in the fourth quarter. Larson Financial Group LLC now owns 37,864 shares of the financial services provider’s stock valued at $2,934,000 after acquiring an additional 159 shares during the period. Institutional investors own 86.57% of the company’s stock.

About Unum Group

Unum Group (NYSE: UNM) is a leading provider of employee benefits in the United States and selected international markets, specializing in disability, life, accident and critical illness insurance. Through both fully insured and self-funded arrangements, the company offers group coverage designed to protect income and mitigate financial hardship for employees and their families. Its portfolio includes short-term and long-term disability plans, group life and accidental death & dismemberment (AD&D) policies, as well as critical illness and hospital indemnity products.

In addition to its core product lines, Unum Group markets voluntary benefits under its Colonial Life brand, allowing employees to purchase supplemental insurance such as accident, cancer, and dental coverage directly through payroll deductions.