Stock Buyback Plan Announced by Unum Group (NYSE:UNM) Board of Directors

Unum Group (NYSE:UNM) announced that its Board of Directors has approved a stock repurchase program on Thursday, December 4th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 8.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Unum Group Stock Performance

UNM stock traded up $0.98 during mid-day trading on Friday, hitting $74.32. 1,317,865 shares of the company were exchanged, compared to its average volume of 1,142,491. Unum Group has a 1-year low of $66.81 and a 1-year high of $84.48. The stock has a market capitalization of $12.44 billion, a PE ratio of 14.49, a price-to-earnings-growth ratio of 1.43 and a beta of 0.20. The business has a 50 day simple moving average of $76.19 and a 200-day simple moving average of $76.39. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 0.32.

Unum Group (NYSE:UNM) last announced its earnings results on Monday, November 3rd. The financial services provider reported $2.09 earnings per share for the quarter, missing analysts’ consensus estimates of $2.15 by ($0.06). The firm had revenue of $3.25 billion for the quarter, compared to the consensus estimate of $3.31 billion. Unum Group had a return on equity of 13.09% and a net margin of 6.99%.Unum Group’s revenue for the quarter was up 5.0% on a year-over-year basis. During the same quarter last year, the business posted $2.13 EPS. On average, equities analysts forecast that Unum Group will post 9.14 earnings per share for the current year.

Unum Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, November 14th. Stockholders of record on Friday, October 24th were issued a dividend of $0.46 per share. The ex-dividend date of this dividend was Friday, October 24th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 2.5%. Unum Group’s dividend payout ratio (DPR) is currently 35.87%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on UNM shares. JPMorgan Chase & Co. lowered their price target on Unum Group from $94.00 to $92.00 and set a “neutral” rating on the stock in a research report on Tuesday, November 4th. Wolfe Research upgraded shares of Unum Group to a “strong-buy” rating in a report on Tuesday, September 16th. Morgan Stanley upped their price target on shares of Unum Group from $79.00 to $81.00 and gave the stock an “equal weight” rating in a research report on Tuesday, October 7th. Wells Fargo & Company decreased their price objective on shares of Unum Group from $100.00 to $98.00 and set an “overweight” rating for the company in a research report on Wednesday, October 8th. Finally, Evercore ISI upped their target price on shares of Unum Group from $96.00 to $99.00 and gave the company an “outperform” rating in a report on Wednesday, November 5th. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $94.67.

Insider Transactions at Unum Group

In other news, EVP Christopher W. Pyne sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $78.04, for a total transaction of $312,160.00. Following the transaction, the executive vice president directly owned 51,372 shares of the company’s stock, valued at approximately $4,009,070.88. This trade represents a 7.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Steven Andrew Zabel sold 7,500 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $76.38, for a total value of $572,850.00. Following the completion of the sale, the executive vice president owned 113,807 shares of the company’s stock, valued at approximately $8,692,578.66. This trade represents a 6.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.92% of the company’s stock.

About Unum Group

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products.