Follow The Insiders And Other Key Signals: Unum Group (UNM)

EVP, Chief Investment Officer Farrell Breege A sold 7,500 shares in Unum Group (NYSE:UNM) for $53,153 in transaction occurred on 2018/07/31. After making this transaction, the EVP, Chief Investment Officer owns a direct stake of 304,950 shares, worth $1,961,877, as per the last closing price. On 2018/04/30 Simonds Michael Q, EVP, President & CEO, Unum US at UNM, dumped 5,000 shares at an average price of $48.94 per share. The selling total is valued at $2,667,560.

Separately, it had been reported that some other UNM insiders also took part of the insider trading activity. EVP, Global Services, Jerome Christopher J had divested 7,806 shares for $36,465 through a trade on 2018/03/01. Following this activity, the insider holds 397,325 shares worth $1,345,923 as of recent close.Wall Street’s most bullish Unum Group (NYSE:UNM) analysts are predicting the share price to blow past $55 per share during the next 12 months. The current median share price forecast by them is $44, suggesting that the stock could increase 19.21% in that time frame. The average price target of $45.46 calls for a nearly 23.16% increase in the stock price.

Unum Group (UNM) trading activity significantly improved as the volume at ready counter increased to 2,964,012 shares versus 2,733,885 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,955,288 shares. The share price dropped -5.36% in recent trade and currently has a stock-market value of $8.14B. The shares finished at $36.91, after trading as low as $36.88 earlier in the session. It hit an intraday high Thursday at $38.98. The stock is now 6.77% above against its bear-market low of $34.57 on August 10, 2018. It has retreated -59.12% since it’s 52-week high of $58.73 reached in January. Now the market price is down -29.33% on the year and down -32.76% YTD.

UNM’s 50 day simple moving average (SMA 50) price is $37.24 and its 200-day simple moving average (SMA 200) price is $43.63. The company’s stock currently has a total float of 217.75M shares. Its weekly volatility is hovering around 3.58% and felt 2.85% volatility in price over a month. On the upside, the share price will test short term resistance at around $38.3. On a downside, the stock is likely to find some support, which begins at $36.2. The failure to get near-term support could push it to $35.49.

It had seen a new analyst call from BofA/Merrill, which initiated the stock at Underperform on March 26. Analysts at B. Riley FBR, Inc., shed their negative views on February 13 by lifting it fromNeutral to Buy. Analysts at Deutsche Bank, made their first call about the stock on January 02, recommending it is Hold. B. Riley FBR, Inc. analysts came out with bullish views on November 06 when the call was made. They think the stock is now Neutral compared to to their prior call for Sell.

The insider holding in Unum Group (UNM) stood at 0.2% while institutions hold 97.1%. Lsv Asset Management is the largest single holder among mutual funds with ownership of over 5.49M UNM shares as of June 30, with a market value of approx. $203.2M as of today. The second largest holder, Donald Smith, with 5.33M shares which equates to $197.09M worth of the stock. At third is Investec Asset Management Ltd, which stood pat with 4.75M shares, a 2.16% position in Unum Group, worth $175.83M.

When looking at valuations, Unum Group (UNM) has a cheap P/E of 7.88x as compared to industry average of 14.06x. Moreover, it trades for 6.79 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.86x price/book and 0.71x price/sales. Compared to others, Unum Group is in a different league with regards to profitability, having net margins of 9.4%. To put some perspective around this, the industry’s average net margin is 6.03%. UNM’s ROE is 11.4%, which is also considerably better than the industry’s ROE of 6.8%.

Shares of Unum Group (UNM) have dropped -0.8% since the company’s Dec-18 earnings report. Over the past 12 fiscal quarters, Unum Group (NYSE:UNM) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. UNM last reported earnings on July 30, 2018 when it released Jun-18 results that exceeded expectations. The company raked in $1.3 per share, -54.55% change on the same period last year. That was better than consensus for $1.26. Revenue for the recent quarter stood at $2.89 billion, up 3% on last year and below the $2.9 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.89 billion to $2.95 billion, which should be compared with $2.94 billion generated last year. EPS is seen in a range of $1.27 to $1.36, against the $1.13 reported a year ago.