Richard McKenney, President and CEO of Unum Group (NYSE:UNM), sold shares worth approximately $4.44 million in recent transactions, according to a regulatory filing. McKenney disposed of a total of 58,865 shares on November 21, 2024, at prices ranging from $74.6161 to $75.5268 per share.
Following these sales, McKenney retains direct ownership of 1,007,003 shares, which includes restricted stock units and stock success units. Unum Group, based in Chattanooga, Tennessee, specializes in accident and health insurance.
In other recent news, Unum Group has been making headlines with its strong third-quarter financial performance and future plans. The company reported an adjusted earnings per share (EPS) of $2.13, with statutory earnings surpassing $300 million for the quarter and totaling over $1 billion year-to-date. Despite a decrease in sales, particularly in Group Disability, Unum Group is on track to achieve an EPS growth between 10% and 15% for the year, exceeding initial projections.
Piper Sandler reaffirmed its Overweight rating on Unum Group shares, citing long-term care assumptions, favorable claims trends, and technological advancements as key reasons. The firm also highlighted the company's robust balance sheet, with $1.4 billion in liquidity and a 12.5% return on equity.
Unum Group has announced a share repurchase plan set at approximately $1 billion for 2024. The company's premium growth in core operations stood at 4.6% for the quarter, with Group Disability and Life insurance showing solid performance and benefit ratios under 70%. However, sales have decreased compared to the previous year, especially in Group Disability, and Supplemental and voluntary lines saw a decline in adjusted operating income. These are the recent developments from Unum Group.
InvestingPro Insights
As Richard McKenney, President and CEO of Unum Group (NYSE:UNM), reduces his stake in the company, investors might be interested in the broader financial picture of this accident and health insurance specialist. According to InvestingPro data, Unum Group boasts a market capitalization of $13.87 billion and is currently trading at a P/E ratio of 8.24, suggesting a potentially undervalued stock relative to its earnings.
The company's financial health appears robust, with InvestingPro Tips highlighting that Unum has maintained dividend payments for 38 consecutive years and has raised its dividend for 16 consecutive years. This consistent dividend history may provide some reassurance to investors concerned about the CEO's recent stock sale.
Moreover, Unum's stock performance has been impressive, with a one-year price total return of 82.78% as of the latest data. This strong return aligns with another InvestingPro Tip indicating that the company has shown high returns over the last year.
It's worth noting that while the stock is trading near its 52-week high, with a price that is 99.38% of its 52-week peak, analysts have been revising their earnings expectations upwards for the upcoming period. This positive sentiment from analysts could potentially offset any concerns arising from the insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Unum Group, providing a deeper dive into the company's financial health and market position.
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