Employers (NYSE:EIG) Shares Gap Down on Disappointing Earnings

Employers Holdings, Inc. (NYSE:EIG)’s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $43.51, but opened at $39.46. Employers shares last traded at $42.37, with a volume of 37,368 shares trading hands.

The financial services provider reported $0.67 EPS for the quarter, missing the consensus estimate of $0.69 by ($0.02). The company had revenue of $223.10 million for the quarter, compared to analyst estimates of $217.46 million. Employers had a net margin of 13.88% and a return on equity of 10.54%. The firm’s quarterly revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.60 EPS.

Employers Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 13th. Stockholders of record on Wednesday, February 28th were paid a $0.28 dividend. The ex-dividend date of this dividend was Tuesday, February 27th. This represents a $1.12 annualized dividend and a dividend yield of 2.65%. Employers’s dividend payout ratio is currently 25.06%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Janney Montgomery Scott cut shares of Employers from a “buy” rating to a “neutral” rating in a research note on Tuesday, February 27th. Truist Financial raised their target price on shares of Employers from $53.00 to $55.00 and gave the stock a “buy” rating in a report on Tuesday, February 20th.

Institutional Trading of Employers

Institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. increased its position in Employers by 13.6% during the third quarter. PNC Financial Services Group Inc. now owns 2,516 shares of the financial services provider’s stock worth $101,000 after acquiring an additional 302 shares during the period. SG Americas Securities LLC acquired a new position in Employers during the 3rd quarter worth about $198,000. Aigen Investment Management LP acquired a new position in Employers during the 3rd quarter worth about $226,000. Los Angeles Capital Management LLC bought a new stake in Employers during the 3rd quarter worth about $298,000. Finally, Meritage Portfolio Management bought a new stake in Employers during the 3rd quarter worth about $314,000. 80.49% of the stock is currently owned by institutional investors and hedge funds.

Employers Trading Down 2.7 %

The stock has a market capitalization of $1.07 billion, a P/E ratio of 9.47 and a beta of 0.24. The company has a fifty day simple moving average of $44.52 and a two-hundred day simple moving average of $41.24.

Employers Company Profile

Employers Holdings, Inc, through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers' compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands.