Employers (NYSE:EIG) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Employers (NYSE:EIG) issued its quarterly earnings results on Wednesday. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.55 by ($0.02), FiscalAI reports. The business had revenue of $207.60 million during the quarter, compared to the consensus estimate of $213.04 million. Employers had a return on equity of 1.05% and a net margin of 0.95%.The firm’s revenue was up 2.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.87 earnings per share.

Employers Stock Performance

Shares of NYSE EIG traded down $0.07 during trading on Friday, reaching $42.05. 83,277 shares of the company traded hands, compared to its average volume of 268,829. The firm has a 50 day simple moving average of $41.10 and a 200-day simple moving average of $41.62. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $783.41 million, a PE ratio of 127.59 and a beta of 0.48. Employers has a 52-week low of $35.73 and a 52-week high of $50.37.

Employers Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Wednesday, May 13th will be issued a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Wednesday, May 13th. This is a boost from Employers’s previous quarterly dividend of $0.32. Employers’s payout ratio is 387.88%.

Insider Activity

In other news, insider Ann Marie Smith sold 5,000 shares of the firm’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $39.29, for a total transaction of $196,450.00. Following the sale, the insider owned 8,704 shares of the company’s stock, valued at $341,980.16. This trade represents a 36.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Michael Pedraja purchased 2,000 shares of the company’s stock in a transaction dated Tuesday, February 24th. The shares were bought at an average cost of $39.73 per share, for a total transaction of $79,460.00. Following the acquisition, the executive vice president owned 19,830 shares in the company, valued at approximately $787,845.90. The trade was a 11.22% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 1.40% of the company’s stock.

Institutional Trading of Employers

A number of institutional investors have recently made changes to their positions in EIG. Osaic Holdings Inc. increased its holdings 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 buying an additional 363 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in Employers by 179.6% during the second quarter. Tower Research Capital LLC TRC now owns 2,276 shares of the financial services provider’s stock valued at $107,000 after buying an additional 1,462 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in Employers by 26.8% during the second quarter. BNP Paribas Financial Markets now owns 2,718 shares of the financial services provider’s stock valued at $128,000 after buying an additional 575 shares during the last quarter. Royal Bank of Canada increased its holdings in Employers by 33.3% during the fourth quarter. Royal Bank of Canada now owns 3,186 shares of the financial services provider’s stock valued at $137,000 after buying an additional 796 shares during the last quarter. Finally, Virtus Advisers LLC purchased a new stake in Employers during the third quarter valued at approximately $254,000. Hedge funds and other institutional investors own 80.49% of the company’s stock.

Wall Street Analyst Weigh In

EIG has been the topic of a number of analyst reports. Wall Street Zen cut shares of Employers from a “hold” rating to a “sell” rating in a research note on Saturday, March 7th. Zacks Research upgraded shares of Employers from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 24th. One analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Buy”.

Key Stories Impacting Employers

Here are the key news stories impacting Employers this week:

• Positive Sentiment: Company boosted its quarterly dividend to $0.34 (annualized yield ~3.2%) and authorized a new $125 million share repurchase program — actions that return cash to shareholders and support the share price. Press Release
• Neutral Sentiment: Management held an earnings call and transcripts are available; listen for commentary on underwriting trends, loss ratios and outlook which will determine whether capital returns are sustainable. Earnings Call Transcript
• Negative Sentiment: Q1 results missed estimates: EPS of $0.53 versus consensus roughly $0.55–$0.57, and revenue $207.6M vs. ~ $213M expected — EPS fell sharply from $0.87 a year ago, signaling weaker underwriting/profitability. Earnings Miss
• Negative Sentiment: Profitability metrics are weak: net margin (~0.95%) and return on equity (~1.05%) are low, which increases investor focus on whether buybacks/dividends are prudent versus rebuilding underwriting performance. Market Data & Metrics

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.