Neuberger Berman Group LLC has significantly increased its investment in Unum Group (NYSE: UNM), acquiring an additional 303,500 shares during the second quarter of 2023. This acquisition marks a substantial 66.4% increase in its holdings, bringing the total to 760,765 shares valued at approximately $61.4 million, according to the firm’s latest Form 13F filing with the Securities and Exchange Commission.
Several other institutional investors have also adjusted their stakes in Unum Group. Advisory Services Network LLC raised its position by 27.0%, acquiring an additional 10,379 shares for a total of 48,859 shares, worth $3.9 million. Similarly, the State of Wyoming increased its holdings by 57.5%, now owning 11,583 shares valued at around $935,000. Corient Private Wealth LLC made a notable increase, boosting its stake by 90.8% to 254,780 shares, worth $20.6 million, while Captrust Financial Advisors raised its stake by 4.5%, owning now 244,675 shares valued at $19.8 million. Additionally, Keel Point LLC entered the market with a new position valued at $1.1 million. Currently, institutional investors hold approximately 86.57% of Unum Group’s stock.
In related developments, insider transactions have also occurred at Unum Group. Executive Vice President Christopher W. Pyne sold 4,000 shares on November 7, 2023, at an average price of $78.04, totaling $312,160. Following this sale, his ownership decreased to 51,372 shares, valued at $4 million. Another executive, Steven Andrew Zabel, sold 7,500 shares on November 19, 2023, for $572,850, reducing his ownership to 113,807 shares valued at approximately $8.7 million. In total, insiders sold 12,400 shares over the past 90 days, representing around 0.92% of the company’s stock.
Unum Group recently reported its earnings for the third quarter of 2023 on November 3. The company posted earnings per share of $2.09, falling short of analysts’ expectations of $2.15 by $0.06. The company’s revenue reached $3.25 billion, slightly below the projected $3.31 billion, though it marked a 5.0% increase compared to the previous year. Analysts forecast that Unum Group will post an average earnings per share of $9.14 for the current fiscal year.
On December 4, 2023, Unum Group’s Board of Directors approved a stock repurchase plan, allowing the company to buy back up to $1 billion in shares, which represents approximately 8.2% of its outstanding stock. Such buyback initiatives typically signal management’s belief that the stock is undervalued.
Investors were also informed of a recent quarterly dividend of $0.46 per share, paid on November 14, 2023, to shareholders of record on October 24. This reflects an annualized dividend of $1.84 and a yield of 2.4%, with a payout ratio of 35.87%.
Several research firms have updated their ratings and price targets for Unum Group. Wells Fargo & Company lowered its target from $100.00 to $98.00 while maintaining an “overweight” rating. Meanwhile, Barclays raised its target from $92.00 to $95.00, also rating the stock as “overweight.” JPMorgan Chase & Co. lowered its target from $94.00 to $92.00 with a “neutral” rating. Currently, two analysts have a “strong buy” rating on the stock, seven have rated it as a “buy,” and three have assigned a “hold” rating. The consensus rating is “moderate buy,” with an average target price of $94.55.
Unum Group operates primarily in the financial protection benefits sector, offering various products including group long-term and short-term disability, life insurance, and supplemental benefits, serving customers in the United States, the United Kingdom, Poland, and other international markets.
