Unum Group (NYSE: UNM) stock jumped 14.57% on Friday to $35.93 against a previous-day closing price of $31.36. With 3.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.11 million shares. During the session, the Insurance – Life company that operates in wider Financial sector, reached to the highest price of $36.46 whereas the lowest price it dropped to was $34.51. The 52-week range on UNM shows that it touched its highest point at $37.49 and its lowest point at $22.25 during that stretch. It currently has a 1-year price target of $34.77. With its current market cap of 7.41 billion, UNM has annualized dividend of $1.32 while the current yield stands at 3.67%. Beta for the stock currently stands at 1.29.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UNM was up-trending over the past week, with a rise of 8.78%, but this was up by 12.53% over a month. Three-month performance surged to 15.16% while six-month performance rose 41.79%. The stock gained 31.85% in the past year, while it has gained 46.24% so far this year. A look at the trailing 12-month EPS for UNM yields 4.52 with Next year EPS estimates of 5.78. For the next quarter, that number is 1.22. This implies an EPS growth rate of 3.40% for this year and 12.10% for next year. EPS is expected to grow by 13.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 0.40%.
Float and Shares Shorts:
At present, 202.63 million UNM shares are outstanding with a float of 199.57 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.64 million, which was 1.81% higher than short shares on Jun 14, 2022. In addition to Mr. Richard Paul McKenney as the firm’s Pres, CEO & Director, Mr. Steven Andrew Zabel serves as its Exec. VP, Interim Principal Accounting Officer & CFO.
Through their ownership of 89.20% of UNM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.81% of UNM, in contrast to 35.71% held by mutual funds. Shares owned by individuals account for 19.75%. As the largest shareholder in UNM with 10.52% of the stake, The Vanguard Group, Inc. holds 21,148,679 shares worth 21,148,679. A second-largest stockholder of UNM, BlackRock Fund Advisors, holds 20,418,681 shares, controlling over 10.15% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in UNM, holding 18,132,452 shares or 9.02% stake. With a 6.94% stake in UNM, the Fidelity Low Priced Stock Fund is the largest stakeholder. A total of 13,964,568 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.88% of UNM stock, is the second-largest Mutual Fund holder. It holds 5,796,608 shares valued at 197.2 million. Vanguard Total Stock Market Index holds 2.50% of the stake in UNM, owning 5,035,789 shares worth 171.32 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UNM since 13 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UNM analysts setting a high price target of $44.00 and a low target of $21.00, the average target price over the next 12 months is $34.77. Based on these targets, UNM could surge 22.46% to reach the target high and fall by -41.55% to reach the target low. Reaching the average price target will result in a decline of -3.23% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UNM will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $5.35 being high and $4.95 being low. For UNM, this leads to a yearly average estimate of $5.16. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Unum Group surprised analysts by $0.69 when it reported $1.91 EPS against a consensus estimate of $1.22. The surprise factor in the prior quarter was $0.57. Based on analyst estimates, the high estimate for the next quarter is $1.35 and the low estimate is $1.10. The average estimate for the next quarter is thus $1.25.
Summary of Insider Activity:
Insiders traded UNM stock several times over the past three months with 16 Buys and 3 Sells. In these transactions, 65,817 shares were bought while 49,453 shares were sold. The number of buy transactions has increased to 39 while that of sell transactions has risen to 63 over the past year. The total number of shares bought during that period was 502,037 while 309,798 shares were sold.