Kemper (NYSE:KMPR) Shares Gap Down Following Weak Earnings

Kemper Corporation (NYSE:KMPR) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $42.63, but opened at $38.23. Kemper shares last traded at $35.8070, with a volume of 623,160 shares changing hands.

The insurance provider reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $1.33 by ($1.00). Kemper had a return on equity of 14.39% and a net margin of 7.18%.The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the previous year, the firm posted $1.62 earnings per share. Kemper’s quarterly revenue was up 5.2% compared to the same quarter last year.

Kemper Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 3rd. Investors of record on Monday, November 17th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 3.5%. The ex-dividend date is Monday, November 17th. Kemper’s dividend payout ratio is presently 24.11%.

Kemper declared that its board has approved a stock buyback plan on Tuesday, August 5th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the insurance provider to purchase up to 12.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research firms recently commented on KMPR. Cowen reiterated a “buy” rating on shares of Kemper in a research note on Thursday, August 7th. Piper Sandler restated an “underweight” rating and issued a $50.00 price objective (down previously from $75.00) on shares of Kemper in a research note on Wednesday, August 6th. Zacks Research upgraded shares of Kemper from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 7th. Weiss Ratings restated a “hold (c)” rating on shares of Kemper in a research note on Wednesday, October 8th. Finally, JMP Securities dropped their price objective on shares of Kemper from $85.00 to $75.00 and set a “market outperform” rating for the company in a research note on Wednesday, August 6th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Kemper currently has a consensus rating of “Hold” and an average price target of $67.25.

Institutional Investors Weigh In On Kemper

A number of hedge funds have recently added to or reduced their stakes in KMPR. Hantz Financial Services Inc. grew its holdings in Kemper by 1,098.0% during the 3rd quarter. Hantz Financial Services Inc. now owns 587 shares of the insurance provider’s stock worth $30,000 after acquiring an additional 538 shares during the last quarter. Jones Financial Companies Lllp grew its holdings in Kemper by 73.5% during the 3rd quarter. Jones Financial Companies Lllp now owns 656 shares of the insurance provider’s stock worth $34,000 after acquiring an additional 278 shares during the last quarter. Bayforest Capital Ltd bought a new stake in Kemper during the 1st quarter worth about $44,000. IFP Advisors Inc grew its holdings in Kemper by 651.6% during the 2nd quarter. IFP Advisors Inc now owns 699 shares of the insurance provider’s stock worth $45,000 after acquiring an additional 606 shares during the last quarter. Finally, UMB Bank n.a. grew its holdings in Kemper by 194.6% during the 3rd quarter. UMB Bank n.a. now owns 881 shares of the insurance provider’s stock worth $45,000 after acquiring an additional 582 shares during the last quarter. Institutional investors own 86.23% of the company’s stock.

Kemper Trading Down 14.5%

The business’s fifty day simple moving average is $50.17 and its 200 day simple moving average is $56.91. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.32. The stock has a market cap of $2.29 billion, a P/E ratio of 6.84 and a beta of 1.23.

About Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance.