What Should Investors Do With Unum Group (UNM) Stock?

Unum Group (NYSE:UNM) recently claimed $7.19B as the price has approached $32.43. There came a -3.51% decline with the closing bell on Thursday. The stock remained range bound between $31.43 and $32.89. Trading activity significantly improved as the volume at ready counter increased to 3,680,752 shares versus 2,338,090 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,042,981 shares. The stock is now -2.52% above against its bear-market low of $33.27 on December 06, 2018. It has retreated -81.1% since it’s 52-week high of $58.73 reached in January. Now the market price is down -42.62% on the year and down -40.92% YTD.

UNM’s 50 day simple moving average (SMA 50) price is $37.02 and its 200-day simple moving average (SMA 200) price is $40.25. The company’s stock currently has a total float of 217.8M shares. Its weekly volatility is hovering around 3.77% and felt 3.07% volatility in price over a month. On the upside, the share price will test short term resistance at around $33.07. On a downside, the stock is likely to find some support, which begins at $31.61. The failure to get near-term support could push it to $30.79.

Separately, it has been reported that multiple insider activity took place at Unum Group (UNM). EVP, Chief Investment Officer Farrell Breege A sold 7,500 shares 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 $1,723,752, 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 $2,343,781.

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 $1,182,560 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 $41, suggesting that the stock could increase 26.43% in that time frame. The average price target of $43.15 calls for a nearly 33.06% increase in the stock price.

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.

When looking at valuations, Unum Group (UNM) has a pricey P/E of 14.31x as compared to industry average of 13.42x. Moreover, it trades for 5.92 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.83x price/book and 0.62x price/sales. Compared to others, Unum Group is in a different league with regards to profitability, having net margins of 4.7%. To put some perspective around this, the industry’s average net margin is 5.95%. UNM’s ROE is 5.8%, which is also considerably worse than the industry’s ROE of 6.76%.

Shares of Unum Group (UNM) have dropped -1.1% since the company’s last earnings report. Over the past 12 fiscal quarters, Unum Group (NYSE:UNM) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. UNM last reported earnings on October 24, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.37 per share, -77.94% change on the same period last year. That was better than consensus for $1.29. Revenue for the recent quarter stood at $2.92 billion, up 4% on last year and above the $2.89 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.89 billion to $2.94 billion, which should be compared with $2.92 billion generated last year. EPS is seen in a range of $1.28 to $1.36, against the $1.14 reported a year ago.