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

Aflac (NYSE:AFL) issued its quarterly earnings results on Wednesday. The financial services provider reported $1.57 earnings per share for the quarter, missing the consensus estimate of $1.72 by ($0.15), Zacks reports. The company had revenue of $4.87 billion for the quarter, compared to the consensus estimate of $4.45 billion. Aflac had a net margin of 23.55% and a return on equity of 14.97%.

Aflac Stock Performance

Aflac stock traded up $1.46 during trading on Wednesday, reaching $113.50. The company had a trading volume of 2,661,478 shares, compared to its average volume of 2,242,693. The firm has a market capitalization of $59.49 billion, a price-to-earnings ratio of 14.82, a price-to-earnings-growth ratio of 3.31 and a beta of 0.67. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.30. The firm’s 50-day simple moving average is $109.78 and its 200 day simple moving average is $108.44. Aflac has a 52 week low of $96.95 and a 52 week high of $115.83.

Aflac Increases Dividend

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

Insider Buying and Selling

In other Aflac news, Director Joseph L. Moskowitz sold 786 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $113.75, for a total transaction of $89,407.50. Following the sale, the director owned 24,829 shares in the company, valued at approximately $2,824,298.75. This trade represents a 3.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Audrey B. Tillman sold 15,862 shares of Aflac stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $112.00, for a total transaction of $1,776,544.00. Following the transaction, the executive vice president directly owned 230,688 shares in the company, valued at $25,837,056. This represents a 6.43% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 31,766 shares of company stock worth $3,549,706. Corporate insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Aflac

Hedge funds have recently modified their holdings of the stock. Darwin Wealth Management LLC bought a new stake in Aflac in the 2nd quarter valued at $33,000. Headlands Technologies LLC purchased a new position in shares of Aflac during the second quarter valued at about $67,000. Triumph Capital Management purchased a new position in shares of Aflac during the third quarter valued at about $84,000. MUFG Securities EMEA plc bought a new stake in shares of Aflac in the second quarter worth about $152,000. Finally, WFA of San Diego LLC purchased a new stake in shares of Aflac in the second quarter worth about $158,000. Hedge funds and other institutional investors own 67.44% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Mizuho began coverage on shares of Aflac in a report on Tuesday, December 16th. They set an “underperform” rating and a $104.00 price target on the stock. Keefe, Bruyette & Woods upped their price objective on Aflac from $108.00 to $110.00 and gave the company a “market perform” rating in a research report on Thursday, October 9th. Morgan Stanley set a $120.00 target price on Aflac in a report on Monday, December 15th. Evercore ISI boosted their target price on Aflac from $110.00 to $111.00 and gave the stock an “underperform” rating in a research report on Friday, November 7th. Finally, Weiss Ratings restated a “buy (b+)” rating on shares of Aflac in a report on Monday, December 22nd. Three investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Aflac presently has an average rating of “Hold” and a consensus price target 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.