StockNews.com Downgrades Unum Group (NYSE:UNM) to Hold

StockNews.com downgraded shares of Unum Group (NYSE:UNM) from a buy rating to a hold rating in a research note published on Monday.

Several other research analysts also recently weighed in on UNM. BMO Capital Markets started coverage on shares of Unum Group in a research note on Thursday, January 23rd. They issued an “outperform” rating and a $91.00 target price for the company. Keefe, Bruyette & Woods boosted their price objective on shares of Unum Group from $88.00 to $90.00 and gave the company an “outperform” rating in a research report on Wednesday, February 12th. Morgan Stanley raised their target price on shares of Unum Group from $62.00 to $64.00 and gave the stock an “equal weight” rating in a research report on Wednesday, October 30th. Wells Fargo & Company boosted their price target on Unum Group from $81.00 to $91.00 and gave the company an “overweight” rating in a report on Wednesday, February 19th. Finally, Truist Financial lifted their price objective on Unum Group from $70.00 to $75.00 and gave the company a “buy” rating in a research report on Friday, November 1st. Five investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $81.17.

Unum Group Stock Performance

Shares of UNM opened at $77.37 on Monday. The company has a 50-day moving average of $74.51 and a two-hundred day moving average of $67.33. The stock has a market cap of $14.13 billion, a P/E ratio of 8.17, a PEG ratio of 1.14 and a beta of 0.80. Unum Group has a 12-month low of $48.38 and a 12-month high of $79.43. The company has a current ratio of 0.29, a quick ratio of 0.28 and a debt-to-equity ratio of 0.32.

Unum Group (NYSE:UNM) last posted its earnings results on Tuesday, February 4th. The financial services provider reported $2.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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, research analysts predict that Unum Group will post 9.14 EPS for the current fiscal year.

Unum Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 14th. Stockholders of record on Friday, January 24th were paid a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 2.17%. The ex-dividend date of this dividend was Friday, January 24th. Unum Group’s dividend 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 repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 7.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Unum Group

Several institutional investors have recently bought and sold shares of UNM. Vanguard Group Inc. boosted its position in Unum Group by 8.4% during the 4th quarter. Vanguard Group Inc. now owns 20,497,586 shares of the financial services provider’s stock worth $1,496,939,000 after purchasing an additional 1,596,078 shares during the period. Norges Bank purchased a new stake in shares of Unum Group in the fourth quarter worth about $1,003,918,000. Charles Schwab Investment Management Inc. grew its stake in shares of Unum Group by 0.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,552,252 shares of the financial services provider’s stock valued at $405,481,000 after buying an additional 51,744 shares in the last quarter. Northern Trust Corp boosted its holdings in Unum Group by 33.2% in the 4th quarter. Northern Trust Corp now owns 1,930,349 shares of the financial services provider’s stock worth $140,973,000 after acquiring an additional 480,926 shares during the period. Finally, First Trust Advisors LP grew its position in Unum Group by 15.4% in the fourth quarter. First Trust Advisors LP now owns 1,708,452 shares of the financial services provider’s stock valued at $124,768,000 after acquiring an additional 227,644 shares in the last quarter. 86.57% of the stock is currently owned by hedge funds and other institutional investors.

About Unum Group

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.