Employers (NYSE:EIG) Shares Gap Down – Should You Sell?

Employers Holdings Inc (NYSE:EIG) gapped down before the market opened on Monday. The stock had previously closed at $49.08, but opened at $44.50. Employers shares last traded at $45.9350, with a volume of 16,613 shares.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on EIG. Weiss Ratings reissued a “hold (c)” rating on shares of Employers in a research report on Tuesday, September 22nd. Truist Financial raised their price objective on shares of Employers from $49.00 to $59.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $59.00.

Employers Stock Up 4.6%

The company has a market capitalization of $840.99 million, a PE ratio of 27.67 and a beta of 0.50. The company has a quick ratio of 0.39, a current ratio of 1.41 and a debt-to-equity ratio of 0.16. The firm has a 50-day moving average of $49.48 and a two-hundred day moving average of $45.89.

Employers (NYSE:EIG) last posted its earnings results on Wednesday, October 28th. The financial services provider reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.12. Employers had a return on equity of 5.82% and a net margin of 3.49%. The company had revenue of $189.30 million for the quarter, compared to the consensus estimate of $191.46 million. During the same quarter in the previous year, the business earned ($1.10) earnings per share. Equities research analysts predict that Employers Holdings Inc will post 2.28 earnings per share for the current fiscal year.

Employers Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Thursday, November 12th will be issued a dividend of $0.34 per share. The ex-dividend date is Thursday, November 12th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.9%. Employers’s dividend payout ratio is currently 80.47%.

Institutional Trading of Employers

A number of hedge funds and other institutional investors have recently modified their holdings of EIG. Bessemer Group Inc. raised its holdings in Employers by 227.1% in the 1st quarter. Bessemer Group Inc. now owns 651 shares of the financial services provider’s stock valued at $27,000 after buying an additional 452 shares during the period. Nykredit A S acquired a new position in Employers in the second quarter valued at about $30,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Employers in the second quarter valued at about $35,000. Global Retirement Partners LLC purchased a new position in Employers during the second quarter worth about $41,000. Finally, Fortitude Family Office LLC purchased a new position in Employers during the third quarter worth about $78,000. 80.49% of the stock is owned by institutional investors and hedge funds.

About Employers

Employers Holdings, Inc (NYSE:EIG) is an insurance holding company specializing in workers’ compensation coverage for small and midsize businesses. Through its insurance subsidiaries, the company provides policies designed to cover workplace injuries, related medical expenses, rehabilitation, and wage-replacement benefits.

In addition to underwriting workers’ compensation insurance, Employers offers claims management, workplace-safety and loss-control services, risk-management resources, and policyholder support.