Employers (NYSE:EIG) Raised to Hold at Wall Street Zen
by Tristan Rich · The Markets DailyEmployers (NYSE:EIG – Get Free Report) was upgraded by stock analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a note issued to investors on Saturday.
A number of other equities research analysts have also weighed in on EIG. Weiss Ratings restated a “hold (c-)” rating on shares of Employers in a report on Monday, December 29th. Zacks Research upgraded shares of Employers from a “strong sell” rating to a “hold” rating in a research report on Tuesday, December 30th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has a consensus rating of “Hold”.
Read Our Latest Research Report on Employers
Employers Trading Down 7.5%
EIG opened at $39.26 on Friday. The stock has a market capitalization of $882.52 million, a P/E ratio of 118.96 and a beta of 0.57. The stock has a 50-day moving average price of $43.62 and a 200-day moving average price of $42.01. Employers has a 12-month low of $35.73 and a 12-month high of $52.28.
Employers (NYSE:EIG – Get Free Report) last released its earnings results on Thursday, February 19th. The financial services provider reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.25. The company had revenue of $170.50 million during the quarter, compared to the consensus estimate of $217.35 million. Employers had a return on equity of 2.10% and a net margin of 1.26%.Employers’s quarterly revenue was down 21.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.15 EPS. On average, equities research analysts predict that Employers will post 3.63 EPS for the current year.
Institutional Investors Weigh In On Employers
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in Employers by 32.8% in the 1st quarter. Royal Bank of Canada now owns 6,037 shares of the financial services provider’s stock worth $306,000 after acquiring an additional 1,490 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Employers by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,685 shares of the financial services provider’s stock worth $744,000 after purchasing an additional 644 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Employers by 9.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 67,992 shares of the financial services provider’s stock worth $3,443,000 after purchasing an additional 5,696 shares during the last quarter. Jane Street Group LLC grew its stake in shares of Employers by 738.8% in the first quarter. Jane Street Group LLC now owns 40,448 shares of the financial services provider’s stock worth $2,048,000 after purchasing an additional 35,626 shares during the last quarter. Finally, Allianz Asset Management GmbH purchased a new position in Employers during the 2nd quarter valued at about $719,000. 80.49% of the stock is currently owned by institutional investors.
More Employers News
Here are the key news stories impacting Employers this week:
- Positive Sentiment: Q4 EPS beat — Employers reported $0.66 EPS vs. consensus ~$0.41, surprising on earnings-per-share despite underwriting headwinds. Zacks: EIG Tops Q4 Earnings
- Positive Sentiment: Dividend maintained and capital return — the board declared a $0.32 quarterly cash dividend (3.4% yield), signaling shareholder returns and steady capital policy. MarketBeat: Dividend Announcement
- Positive Sentiment: Recapitalization completed — management announced completion of a $125 million recapitalization, which should strengthen the balance sheet and support capacity for underwriting and growth. Business Insider: Q4 Results & Recapitalization
- Positive Sentiment: Strategic product expansion — launched an Excess Workers’ Compensation product for self-insured organizations, extending addressable market and offering analytics/risk services that can drive higher‑margin business over time. GlobeNewswire: New Excess Product
- Neutral Sentiment: Management commentary and call transcripts are available — dig into the earnings call for color on loss drivers, pricing, and deployment of recapitalization proceeds. Seeking Alpha: Q4 Call Transcript Fool: Call Transcript
- Neutral Sentiment: Book value and policy counts — adjusted book value per share and policies in‑force rose year over year, showing some underlying franchise resilience. GlobeNewswire: Full Results
- Negative Sentiment: Revenue and underwriting weakness — Q4 revenue (~$170.5M) missed estimates (~$217M), and full‑year net income plunged vs. prior year (from $118.6M to $10.8M) driven by a higher loss & LAE ratio and a GAAP combined ratio >110%, which pressures profitability and investor confidence. Yahoo Finance: Revenue Miss
- Negative Sentiment: Investment volatility and lower adjusted earnings — net realized/unrealized investment losses and sharply lower annual GAAP net income reduce cushions against underwriting shocks. These items amplify short‑term downside despite EPS beat. GlobeNewswire: Full Results
About Employers
Employers Holdings, Inc (NYSE: EIG) is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers’ compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries.
The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors.