Truist Financial Issues Pessimistic Forecast for AMERISAFE (NASDAQ:AMSF) Stock Price

AMERISAFE (NASDAQ:AMSF) had its target price decreased by analysts at Truist Financial from $27.00 to $25.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has a “hold” rating on the insurance provider’s stock. Truist Financial‘s price objective suggests a potential upside of 13.74% from the company’s previous close.

A number of other equities analysts have also weighed in on AMSF. Morgan Stanley set a $40.00 target price on AMERISAFE in a research report on Monday, October 12th. Citigroup restated a “market outperform” rating on shares of AMERISAFE in a research report on Monday, October 12th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of AMERISAFE in a research report on Monday. Wall Street Zen lowered shares of AMERISAFE from a “hold” rating to a “sell” rating in a research note on Tuesday, October 20th. Finally, Zacks Research raised AMERISAFE from a “strong sell” rating to a “hold” rating in a report on Monday, September 28th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, AMERISAFE has an average rating of “Hold” and a consensus target price of $33.33.

AMERISAFE Stock Down 4.8%

AMERISAFE stock traded down $1.11 during trading hours on Friday, hitting $21.98. The stock had a trading volume of 74,292 shares, compared to its average volume of 291,771. The stock has a market capitalization of $407.42 million, a P/E ratio of 10.25 and a beta of 0.24. AMERISAFE has a 12-month low of $21.97 and a 12-month high of $42.10. The stock’s 50-day moving average price is $25.00 and its 200-day moving average price is $31.07.

AMERISAFE (NASDAQ:AMSF) last posted its quarterly earnings results on Wednesday, October 28th. The insurance provider reported $0.40 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.08). AMERISAFE had a net margin of 12.10% and a return on equity of 13.98%. The firm had revenue of $76.67 million for the quarter, compared to analysts’ expectations of $84.72 million. On average, research analysts expect that AMERISAFE will post 1.95 EPS for the current fiscal year.

Hedge Funds Weigh In On AMERISAFE

A number of hedge funds have recently modified their holdings of AMSF. Global Retirement Partners LLC purchased a new stake in shares of AMERISAFE in the second quarter worth $26,000. Parallel Advisors LLC raised its position in shares of AMERISAFE by 5,714.3% during the 1st quarter. Parallel Advisors LLC now owns 814 shares of the insurance provider’s stock valued at $27,000 after purchasing an additional 800 shares during the period. Allworth Financial LP raised its position in shares of AMERISAFE by 317.8% during the 2nd quarter. Allworth Financial LP now owns 1,124 shares of the insurance provider’s stock valued at $38,000 after purchasing an additional 855 shares during the period. PNC Financial Services Group Inc. raised its position in shares of AMERISAFE by 148.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,571 shares of the insurance provider’s stock valued at $52,000 after purchasing an additional 938 shares during the period. Finally, Quantbot Technologies LP purchased a new position in shares of AMERISAFE during the 2nd quarter valued at $49,000. 97.41% of the stock is currently owned by institutional investors.

Key Headlines Impacting AMERISAFE

Here are the key news stories impacting AMERISAFE this week:

• Positive Sentiment: Management expects workers’ compensation loss costs to decline by approximately 5% to 6% through 2027, which could support future claims margins if pricing discipline improves. However, executives described current competition as “irrational.” Amerisafe sees loss cost declines into 2027
• Positive Sentiment: AMERISAFE declared a quarterly dividend of $0.41 per share, or $1.64 annualized, representing an indicated yield of roughly 7.1% at the referenced share price. The dividend may provide downside support for income-focused investors.
• Positive Sentiment: Citizens reaffirmed an “outperform” rating, although it reduced its price target from $40 to $35 because of the quarterly misses. The revised target still implies substantial potential upside from recent levels. Citizens lowers AMERISAFE price target
• Neutral Sentiment: Third-quarter revenue increased year over year to approximately $79.8 million, while operating profit rose to about $32.8 million. These gains indicate stronger core operating performance, but they did not translate into higher net income or earnings per share.
• Negative Sentiment: AMERISAFE reported EPS of roughly $0.39 to $0.40, down from $0.55 a year earlier and below analyst expectations near $0.47 to $0.49. Revenue also fell short of estimates, coming in near $79.8 million versus expectations of roughly $85 million. AMERISAFE lags third-quarter estimates
• Negative Sentiment: The quarter marked a fifth consecutive earnings decline, with margins pressured by rising commission costs despite lower new-business volumes. Operating cash flow also weakened to approximately $1.8 million, adding to investor concerns about the quality and sustainability of earnings. Amerisafe third-quarter earnings analysis

About AMERISAFE

AMERISAFE, Inc is a specialty workers’ compensation insurance company serving small and midsized businesses. The company focuses on employers in industries with elevated workplace risks, including construction, trucking, logging, agriculture, manufacturing, and maritime operations.

Through its insurance subsidiaries, AMERISAFE provides workers’ compensation coverage designed to protect businesses from costs associated with workplace injuries and occupational illnesses. Its services also include workplace safety and loss-control support, claims management, medical cost containment, and premium audit services.

Headquartered in DeRidder, Louisiana, AMERISAFE primarily serves employers in the southeastern and south-central United States.