Aflac (NYSE:AFL) Reaches New 12-Month High Following Earnings Beat

Aflac Incorporated (NYSE:AFL)’s stock price reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $131.19 and last traded at $130.5330, with a volume of 384,478 shares changing hands. The stock had previously closed at $125.30.

The financial services provider reported $2.43 EPS for the quarter, topping the consensus estimate of $1.80 by $0.63. The company had revenue of $3.27 billion for the quarter, compared to analyst estimates of $4.12 billion. Aflac had a net margin of 26.91% and a return on equity of 13.27%. Aflac’s quarterly revenue was down 31.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.49 EPS.

Aflac Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 18th will be issued a $0.61 dividend. The ex-dividend date is Wednesday, November 18th. This represents a $2.44 dividend on an annualized basis and a yield of 1.9%. Aflac’s dividend payout ratio is currently 26.15%.

Key Headlines Impacting Aflac

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Adjusted earnings were $2.43 per share, beating analyst expectations of about $1.80 and coming close to $2.49 a year earlier. Aflac Q3 earnings report
• Positive Sentiment: Aflac declared a quarterly dividend of $0.61 per share, equivalent to $2.44 annually and a stated yield of 1.9%. The dividend is payable December 1 to shareholders of record November 18. Aflac results and dividend announcement
• Neutral Sentiment: Quarterly revenue figures in the supplied reports conflict: several cite $3.27 billion, below the $4.12 billion estimate, while another reports $4.297 billion and a beat. Investors may want to consult Aflac’s release for the applicable revenue measure. Revenue estimate report
• Negative Sentiment: Reports also said GAAP net profit fell; one cited net earnings of $303 million, or $0.61 per diluted share. This contrasts with the stronger adjusted EPS figure and could temper the earnings beat’s positive impact. Aflac Q3 profit report

Analyst Upgrades and Downgrades

Several research firms have weighed in on AFL. TD Cowen restated a “hold” rating and set a $110.00 target price (up from $101.00) on shares of Aflac in a report on Wednesday, July 22nd. Raymond James Financial upped their price target on Aflac from $119.00 to $123.00 in a research note on Wednesday, August 26th. JPMorgan Chase & Co. increased their price objective on Aflac from $116.00 to $119.00 and gave the company a “neutral” rating in a report on Thursday, October 15th. Jefferies Financial Group raised their price objective on Aflac from $108.00 to $112.00 and gave the company a “hold” rating in a research note on Monday, August 10th. Finally, Wolfe Research initiated coverage on Aflac in a research note on Wednesday, August 19th. They issued an “underperform” rating and a $103.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $117.20.

Insider Activity

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 113,611 shares of the firm’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $118.53, for a total value of $13,466,311.83. Following the transaction, the insider directly owned 50,134,329 shares in the company, valued at approximately $5,942,422,016.37. This trade represents a 0.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 713,662 shares of company stock worth $83,323,978. 0.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Archer Investment Corp bought a new stake in Aflac during the 2nd quarter valued at approximately $26,000. Groupe la Francaise acquired a new stake in Aflac in the 1st quarter valued at approximately $25,000. Edmond DE Rothschild Holding S.A. acquired a new stake in Aflac in the 2nd quarter valued at approximately $27,000. Whipplewood Advisors LLC bought a new position in Aflac in the 1st quarter worth approximately $25,000. Finally, Washington Trust Advisors Inc. bought a new position in Aflac in the 2nd quarter worth approximately $29,000. Institutional investors and hedge funds own 67.44% of the company’s stock.

Aflac Trading Up 4.1%

The company has a market capitalization of $65.39 billion, a price-to-earnings ratio of 13.95, a price-to-earnings-growth ratio of 1.96 and a beta of 0.55. The business has a fifty day moving average price of $117.17 and a 200 day moving average price of $116.05. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.12 and a quick ratio of 0.12.

About Aflac

Aflac Incorporated (NYSE:AFL) is an insurance company specializing in supplemental health and life insurance. Through its policies, the company helps individuals and families manage expenses that may not be fully covered by major medical insurance, including deductibles, copayments and other out-of-pocket costs.

Aflac offers products such as accident, cancer, critical illness, hospital indemnity, dental and vision, disability, life and long-term care insurance. Many of its supplemental policies provide cash benefits directly to policyholders, who can generally use the funds according to their individual needs.