Unum Group [NYSE: UNM] loss -0.63% or -0.14 points to close at $22.13 with a heavy trading volume of 3218727 shares. The company report on December 17, 2020 that Unum Group Announces Reinsurance Transaction with Global Atlantic on $7.1 Billion Closed Individual Disability Block.
Unum Group (NYSE: UNM) announced that three of its insurance company subsidiaries have entered into an agreement to reinsure a substantial portion of Unum’s Closed Individual Disability Insurance Block (“IDI”) business, backed by approximately $7.1 billion in reserves, to a subsidiary of Global Atlantic through a coinsurance arrangement. Global Atlantic’s subsidiary will maintain over-collateralized trust accounts for the benefit of each Unum ceding company to secure its obligations under the relevant reinsurance agreement. Unum will continue to provide service and administration for the reinsured IDI business.
Once the transaction is fully executed, assuming receipt of all consents and regulatory approvals, Unum expects to release approximately $600 million of capital backing the block. Initially, the released capital is expected to be held at the holding company, increasing capital flexibility during the current challenging economic environment. There is expected to be minimal impact to the weighted average risk-based capital ratio and statutory operating earnings of its U.S. traditional insurance subsidiaries once the transaction is fully completed.
It opened the trading session at $23.24, the shares rose to $23.99 and dropped to $21.98, the range by which the price of stock traded the whole day. The daily chart for UNM points out that the company has recorded 34.28% gains over the past six months. However, it is still -131.0% lower than its most recent low trading price.
If we look at the average trading volume of 2.48M shares, UNM reached to a volume of 3218727 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Unum Group [UNM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UNM shares is $21.09 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UNM stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Barclays have made an estimate for Unum Group shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on November 17, 2020. The new note on the price target was released on June 01, 2020, representing the official price target for Unum Group stock. Previously, the target price had yet another drop from $19 to $18, while Credit Suisse kept a Neutral rating on UNM stock.
The Average True Range (ATR) for Unum Group is set at 0.94, with the Price to Sales ratio for UNM stock in the period of the last 12 months amounting to 0.39. The Price to Book ratio for the last quarter was 0.41, with the Price to Cash per share for the same quarter was set at 0.50. Price to Free Cash Flow for UNM in the course of the last twelve months was 3.32.
Trading performance analysis for UNM stock
Unum Group [UNM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.06. With this latest performance, UNM shares gained by 3.41% in over the last four-week period, additionally plugging by 34.28% over the last 6 months – not to mention a drop of -25.29% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UNM stock in for the last two-week period is set at 49.67, with the RSI for the last a single of trading hit 42.69, and the three-weeks RSI is set at 52.70 for Unum Group [UNM]. The present Moving Average for the last 50 days of trading for this stock 20.70, while it was recorded at 22.57 for the last single week of trading, and 17.60 for the last 200 days.
Unum Group [UNM]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Unum Group [UNM] shares currently have an operating margin of +13.22. Unum Group’s Net Margin is presently recorded at +9.17.
Return on Total Capital for UNM is now 12.69, given the latest momentum, and Return on Invested Capital for the company is 8.96. Return on Equity for this stock inclined to 11.84, with Return on Assets sitting at 1.81. When it comes to the capital structure of this company, Unum Group [UNM] has a Total Debt to Total Equity ratio set at 34.53. Additionally, UNM Total Debt to Total Capital is recorded at 25.67, with Total Debt to Total Assets ending up at 5.41. Long-Term Debt to Equity for the company is recorded at 30.26, with the Long-Term Debt to Total Capital now at 22.49.
Reflecting on the efficiency of the workforce at the company, Unum Group [UNM] managed to generate an average of $106,825 per employee.
Unum Group [UNM]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Unum Group posted 1.41/share EPS, while the average EPS was predicted by analysts to be reported at 1.38/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UNM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Unum Group go to 4.21%.
An analysis of insider ownership at Unum Group [UNM]
There are presently around $3,904 million, or 91.90% of UNM stock, in the hands of institutional investors. The top three institutional holders of UNM stocks are: VANGUARD GROUP INC with ownership of 24,957,895, which is approximately -4.559% of the company’s market cap and around 0.70% of the total institutional ownership; FMR LLC, holding 18,283,162 shares of the stock with an approximate value of $404.61 million in UNM stocks shares; and BLACKROCK INC., currently with $375.11 million in UNM stock with ownership of nearly -4.208% of the company’s market capitalization.
Positions in Unum Group stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 184 institutional holders increased their position in Unum Group [NYSE:UNM] by around 7,346,087 shares. Additionally, 219 investors decreased positions by around 18,047,262 shares, while 51 investors held positions by with 151,035,423 shares. The mentioned changes placed institutional holdings at 176,428,772 shares, according to the latest SEC report filing. UNM stock had 44 new institutional investments in for a total of 1,623,386 shares, while 61 institutional investors sold positions of 2,464,821 shares during the same period.