Unum Group (NYSE:UNM) to Repurchase $1.00 billion in Stock

Unum Group (NYSE:UNM) declared that its Board of Directors has approved a stock repurchase plan on Wednesday, August 26th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 7% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its shares are undervalued.

Unum Group Stock Up 2.0%

Shares of UNM traded up $1.76 during trading hours on Wednesday, hitting $91.45. The company had a trading volume of 1,548,402 shares, compared to its average volume of 1,409,499. Unum Group has a 52-week low of $68.70 and a 52-week high of $94.55. The firm has a fifty day moving average price of $89.29 and a 200-day moving average price of $82.03. The stock has a market capitalization of $14.48 billion, a price-to-earnings ratio of 21.32, a P/E/G ratio of 0.95 and a beta of 0.26. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.34 and a current ratio of 0.34.

Unum Group (NYSE:UNM) last issued its earnings results on Tuesday, July 28th. The financial services provider reported $2.16 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.16. Unum Group had a net margin of 5.26% and a return on equity of 12.60%. The firm had revenue of $3.39 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same quarter in the prior year, the firm posted $1.92 earnings per share. The business’s revenue was up .3% on a year-over-year basis. Unum Group has set its FY 2026 guidance at 8.600-8.900 EPS. On average, equities research analysts forecast that Unum Group will post 8.64 EPS for the current fiscal year.

Unum Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 24th were given a $0.505 dividend. This is a positive change from Unum Group’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend was Friday, July 24th. This represents a $2.02 dividend on an annualized basis and a yield of 2.2%. Unum Group’s payout ratio is presently 47.09%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on UNM shares. Keefe, Bruyette & Woods lowered their price objective on shares of Unum Group from $110.00 to $108.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. UBS Group set a $94.00 price objective on Unum Group in a report on Tuesday, July 7th. Evercore restated an “outperform” rating and set a $106.00 price target on shares of Unum Group in a research report on Tuesday, July 7th. JPMorgan Chase & Co. dropped their price objective on Unum Group from $101.00 to $98.00 and set a “neutral” rating for the company in a research note on Monday, August 3rd. Finally, Weiss Ratings raised shares of Unum Group from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, July 28th. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Unum Group currently has an average rating of “Moderate Buy” and a consensus target price of $99.42.

Unum Group Company Profile

Unum Group (NYSE: UNM) is a leading provider of employee benefits in the United States and selected international markets, specializing in disability, life, accident and critical illness insurance. Through both fully insured and self-funded arrangements, the company offers group coverage designed to protect income and mitigate financial hardship for employees and their families. Its portfolio includes short-term and long-term disability plans, group life and accidental death & dismemberment (AD&D) policies, as well as critical illness and hospital indemnity products.

In addition to its core product lines, Unum Group markets voluntary benefits under its Colonial Life brand, allowing employees to purchase supplemental insurance such as accident, cancer, and dental coverage directly through payroll deductions.