Aflac (NYSE:AFL) Announces Earnings Results, Misses Expectations By $0.15 EPS

Aflac (NYSE:AFL) issued its quarterly earnings data on Wednesday. The financial services provider reported $1.57 EPS for the quarter, missing analysts’ consensus estimates of $1.72 by ($0.15), Zacks reports. Aflac had a return on equity of 14.97% and a net margin of 23.55%.The business had revenue of $4.87 billion during the quarter, compared to analysts’ expectations of $4.45 billion.

Aflac Stock Performance

Shares of Aflac stock traded up $1.46 during midday trading on Wednesday, hitting $113.50. The company had a trading volume of 2,661,478 shares, compared to its average volume of 2,242,693. The company has a fifty day simple moving average of $109.78 and a 200 day simple moving average of $108.44. The stock has a market cap of $59.49 billion, a price-to-earnings ratio of 14.82, a PEG ratio of 3.31 and a beta of 0.67. The company has a quick ratio of 0.11, a current ratio of 0.11 and a debt-to-equity ratio of 0.30. Aflac has a 12-month low of $96.95 and a 12-month high of $115.83.

Aflac Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Wednesday, February 18th will be issued a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a dividend yield of 2.1%. This is an increase from Aflac’s previous quarterly dividend of $0.58. The ex-dividend date is Wednesday, February 18th. Aflac’s dividend payout ratio is currently 30.29%.

Insider Activity at Aflac

In other news, EVP Steven Kent Beaver sold 5,492 shares of the business’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $109.53, for a total transaction of $601,538.76. Following the sale, the executive vice president directly owned 38,368 shares of the company’s stock, valued at $4,202,447.04. The trade was a 12.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Audrey B. Tillman sold 15,862 shares of the firm’s stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $112.00, for a total value of $1,776,544.00. Following the completion of the transaction, the executive vice president owned 230,688 shares of the company’s stock, valued at $25,837,056. This trade represents a 6.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 31,766 shares of company stock worth $3,549,706. 0.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Aflac

Institutional investors have recently bought and sold shares of the business. Sunbelt Securities Inc. boosted its position in Aflac by 76.9% during the third quarter. Sunbelt Securities Inc. now owns 4,921 shares of the financial services provider’s stock worth $550,000 after purchasing an additional 2,139 shares in the last quarter. San Luis Wealth Advisors LLC purchased a new position in shares of Aflac during the 3rd quarter valued at approximately $285,000. Integrated Investment Consultants LLC purchased a new stake in Aflac in the 3rd quarter worth $239,000. Financial Engines Advisors L.L.C. raised its position in Aflac by 9.5% during the third quarter. Financial Engines Advisors L.L.C. now owns 2,278 shares of the financial services provider’s stock worth $254,000 after acquiring an additional 197 shares during the period. Finally, Gould Capital LLC raised its position in Aflac by 0.6% during the third quarter. Gould Capital LLC now owns 29,815 shares of the financial services provider’s stock worth $3,330,000 after acquiring an additional 192 shares during the period. 67.44% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on AFL. Mizuho started coverage on shares of Aflac in a research report on Tuesday, December 16th. They issued an “underperform” rating and a $104.00 price objective on the stock. Raymond James Financial reissued an “outperform” rating and set a $119.00 price target (up from $110.00) on shares of Aflac in a research note on Tuesday, December 30th. Morgan Stanley set a $120.00 price objective on Aflac in a report on Monday, December 15th. Keefe, Bruyette & Woods increased their target price on Aflac from $108.00 to $110.00 and gave the stock a “market perform” rating in a research note on Thursday, October 9th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Aflac from $101.00 to $105.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Aflac has an average rating of “Hold” and a consensus target price of $110.64.

Aflac Company Profile

Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac’s product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.