Employers (NYSE:EIG) Shares Down 9.5% – Should You Sell?

Shares of Employers Holdings Inc (NYSE:EIG) fell 9.5% during trading on Friday . The stock traded as low as $39.09 and last traded at $38.4250. 102,430 shares were traded during mid-day trading, a decline of 60% from the average session volume of 255,318 shares. The stock had previously closed at $42.45.

Key Stories Impacting Employers

Here are the key news stories impacting Employers this week:

• Positive Sentiment: Q4 EPS beat — Employers reported $0.66 EPS vs. consensus ~$0.41, surprising on earnings-per-share despite underwriting headwinds. Zacks: EIG Tops Q4 Earnings
• Positive Sentiment: Dividend maintained and capital return — the board declared a $0.32 quarterly cash dividend (3.4% yield), signaling shareholder returns and steady capital policy. MarketBeat: Dividend Announcement
• Positive Sentiment: Recapitalization completed — management announced completion of a $125 million recapitalization, which should strengthen the balance sheet and support capacity for underwriting and growth. Business Insider: Q4 Results & Recapitalization
• Positive Sentiment: Strategic product expansion — launched an Excess Workers’ Compensation product for self-insured organizations, extending addressable market and offering analytics/risk services that can drive higher‑margin business over time. GlobeNewswire: New Excess Product
• Neutral Sentiment: Management commentary and call transcripts are available — dig into the earnings call for color on loss drivers, pricing, and deployment of recapitalization proceeds. Seeking Alpha: Q4 Call Transcript Fool: Call Transcript
• Neutral Sentiment: Book value and policy counts — adjusted book value per share and policies in‑force rose year over year, showing some underlying franchise resilience. GlobeNewswire: Full Results
• Negative Sentiment: Revenue and underwriting weakness — Q4 revenue (~$170.5M) missed estimates (~$217M), and full‑year net income plunged vs. prior year (from $118.6M to $10.8M) driven by a higher loss & LAE ratio and a GAAP combined ratio >110%, which pressures profitability and investor confidence. Yahoo Finance: Revenue Miss
• Negative Sentiment: Investment volatility and lower adjusted earnings — net realized/unrealized investment losses and sharply lower annual GAAP net income reduce cushions against underwriting shocks. These items amplify short‑term downside despite EPS beat. GlobeNewswire: Full Results

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Wall Street Zen upgraded Employers from a “sell” rating to a “hold” rating in a report on Saturday. Zacks Research upgraded Employers from a “strong sell” rating to a “hold” rating in a research report on Tuesday, December 30th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Employers in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of “Hold”.

Employers Trading Down 7.5%

The business has a 50 day simple moving average of $43.62 and a two-hundred day simple moving average of $42.01. The company has a market cap of $882.52 million, a PE ratio of 118.96 and a beta of 0.57.

Employers (NYSE:EIG) last released its earnings results on Thursday, February 19th. The financial services provider reported $0.66 EPS for the quarter, beating the consensus estimate of $0.41 by $0.25. Employers had a return on equity of 2.05% and a net margin of 1.26%.The firm had revenue of $170.50 million during the quarter, compared to analyst estimates of $217.35 million. During the same period in the prior year, the firm posted $1.15 earnings per share. The business’s quarterly revenue was down 21.3% compared to the same quarter last year. On average, equities research analysts expect that Employers Holdings Inc will post 3.63 earnings per share for the current fiscal year.

Employers Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Wednesday, March 4th. Employers’s dividend payout ratio is presently 50.59%.

Hedge Funds Weigh In On Employers

Several institutional investors and hedge funds have recently bought and sold shares of EIG. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its holdings in shares of Employers by 4.3% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 6,172 shares of the financial services provider’s stock valued at $291,000 after purchasing an additional 257 shares during the last quarter. Aquatic Capital Management LLC raised its position in shares of Employers by 1.2% in the 3rd quarter. Aquatic Capital Management LLC now owns 22,623 shares of the financial services provider’s stock worth $961,000 after buying an additional 277 shares during the period. Deutsche Bank AG boosted its holdings in Employers by 1.3% in the fourth quarter. Deutsche Bank AG now owns 24,084 shares of the financial services provider’s stock valued at $1,040,000 after acquiring an additional 302 shares during the last quarter. Osaic Holdings Inc. grew its position in Employers by 133.5% during the second quarter. Osaic Holdings Inc. now owns 635 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 363 shares during the period. Finally, Clearstead Advisors LLC increased its stake in Employers by 145.5% during the fourth quarter. Clearstead Advisors LLC now owns 621 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 368 shares during the last quarter. Institutional investors and hedge funds own 80.49% of the company’s stock.

Employers Company Profile

Employers Holdings, Inc (NYSE: EIG) is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers’ compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries.

The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors.