Employers (NYSE:EIG) Shares Gap Down Following Weak Earnings

Employers Holdings, Inc. (NYSE:EIG)’s share price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $43.51, but opened at $39.46. Employers shares last traded at $42.37, with a volume of 37,368 shares.

The financial services provider reported $0.67 EPS for the quarter, missing the consensus estimate of $0.69 by ($0.02). The company had revenue of $223.10 million during the quarter, compared to analysts’ expectations of $217.46 million. Employers had a net margin of 13.88% and a return on equity of 10.54%. The business’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.60 earnings per share.

Employers Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 13th. Shareholders of record on Wednesday, February 28th were paid a $0.28 dividend. The ex-dividend date was Tuesday, February 27th. This represents a $1.12 annualized dividend and a yield of 2.55%. Employers’s dividend payout ratio is presently 25.06%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on EIG shares. Truist Financial boosted their target price on Employers from $53.00 to $55.00 and gave the company a “buy” rating in a report on Tuesday, February 20th. Janney Montgomery Scott cut Employers from a “buy” rating to a “neutral” rating in a research note on Tuesday, February 27th.

Institutional Investors Weigh In On Employers

Several hedge funds have recently made changes to their positions in the business. PNC Financial Services Group Inc. raised its stake in shares of Employers by 13.6% during the third quarter. PNC Financial Services Group Inc. now owns 2,516 shares of the financial services provider’s stock worth $101,000 after purchasing an additional 302 shares during the last quarter. SG Americas Securities LLC acquired a new position in Employers in the 3rd quarter valued at about $198,000. Aigen Investment Management LP acquired a new stake in Employers during the third quarter worth approximately $226,000. Los Angeles Capital Management LLC purchased a new stake in shares of Employers in the third quarter valued at $298,000. Finally, Meritage Portfolio Management purchased a new stake in Employers in the 3rd quarter valued at about $314,000. Institutional investors and hedge funds own 80.49% of the company’s stock.

Employers Price Performance

The stock has a market cap of $1.11 billion, a price-to-earnings ratio of 9.84 and a beta of 0.24. The firm’s 50-day moving average is $44.50 and its 200 day moving average is $41.26.

Employers Company Profile

Employers Holdings, Inc, through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers' compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands.