Neuberger Berman Group LLC has significantly increased its investment in Unum Group (NYSE: UNM) by acquiring an additional 303,500 shares during the second quarter of 2023. This move raises Neuberger Berman’s total holdings to 760,765 shares, representing a notable increase of 66.4%. According to the company’s latest Form 13F filing with the Securities and Exchange Commission, these shares were valued at approximately $61.4 million as of the filing date.
Several other institutional investors have also adjusted their positions in Unum Group. For instance, Advisory Services Network LLC raised its stake by 27.0%, acquiring 10,379 additional shares. This brings their total ownership to 48,859 shares, valued at around $3.9 million. Similarly, the State of Wyoming increased its position by 57.5%, owning 11,583 shares worth approximately $935,000 after buying an additional 4,230 shares.
Corient Private Wealth LLC made a significant move by boosting its stake by 90.8%, now holding 254,780 shares valued at $20.6 million. Captrust Financial Advisors also increased its holdings by 4.5%, owning 244,675 shares worth about $19.8 million. Additionally, Keel Point LLC entered a new position in Unum Group valued at $1.1 million. Collectively, hedge funds and institutional investors own approximately 86.57% of Unum Group’s stock.
Insider Transactions and Company Performance
In related developments, insider trading activity has been notable. On November 7, Christopher W. Pyne, Executive Vice President, sold 4,000 shares at an average price of $78.04, totaling $312,160. Following this sale, Pyne retains 51,372 shares valued at approximately $4 million, marking a 7.22% decrease in his ownership.
Another insider, Steven Andrew Zabel, also sold shares on November 19, disposing of 7,500 shares at an average price of $76.38, amounting to $572,850. Zabel’s remaining holdings now total 113,807 shares, valued at about $8.7 million, reflecting a 6.18% decrease in ownership. Over the past 90 days, insiders have sold a total of 12,400 shares valued at $951,160, with corporate insiders currently holding only 0.92% of the stock.
Unum Group reported its latest earnings on November 3, revealing an earnings per share (EPS) of $2.09 for the quarter, falling short of analysts’ estimates by $0.06. The company’s net margin stood at 6.99% with a return on equity of 13.09%. Revenue for the quarter reached $3.25 billion, slightly below the anticipated $3.31 billion, while marking a 5% increase compared to the same period last year.
Stock Buyback and Dividend Announcements
In a strategic move, Unum Group’s Board of Directors approved a stock repurchase plan on December 4, allowing the company to buy back up to $1 billion worth of shares, equating to approximately 8.2% of its stock. Such buyback plans typically indicate that management believes the stock is undervalued, a sentiment that could bolster investor confidence.
Additionally, Unum Group declared a quarterly dividend of $0.46 per share, which was distributed on November 14 to shareholders on record as of October 24. This translates to an annual dividend of $1.84, yielding 2.4%. The current dividend payout ratio stands at 35.87%.
Analysts have recently adjusted their price targets for Unum Group stock. Wells Fargo & Company lowered its target from $100.00 to $98.00, maintaining an “overweight” rating. Barclays raised its target from $92.00 to $95.00, also assigning an “overweight” rating. Conversely, JPMorgan Chase & Co. cut its target from $94.00 to $92.00, giving it a “neutral” rating. Overall, analysts categorize Unum Group as a “Moderate Buy” with an average target price of $94.55.
Unum Group operates primarily in the United States, the United Kingdom, and Poland, providing financial protection benefit solutions through its various segments. The company continues to adapt and respond to market demands, positioning itself for potential growth and shareholder value enhancement in the coming quarters.
