Is Unum Group (NYSE:UNM) An Ideal Stock To Have In A Portfolio?

Stock analysts at Credit Suisse, assumed coverage of shares of Unum Group (NYSE:UNM) with Underperform recommendation, according to their opinion released on July 10. Analysts at B. Riley FBR, Inc. issued an upgrade for the stock to Buy from previous rating of Neutral, in a research note that dated back to February 13.

Let’s take a glimpse at some insider activity at Unum Group (NYSE:UNM) and observe the pattern. The earliest insider trade happened on 05/28/2019. LARSON GLORIA C parted with a total of 1.6 thousand shares of the firm at average share price of $33.55. The total amount for the sale was set at $53.75 thousand. On completing this exchange, the Director account balance was 82.65 thousand shares. The stock lost -10.13 percent from that insider sale. On 07/31/2018, Farrell Breege A, EVP, Chief Investment Officer, did a sale of 7.5 thousand shares at a price of $40.66 per share. This got rid of 304.95 thousand shares from the insider’s fortune and the stock experienced a -25.85 percent retreat in price since the news became public. This exchange saw 53.15 thousand shares get out from the EVP, Chief Investment Officer account. On 04/30/2018, EVP, President & CEO, Unum US Simonds Michael Q recorded a sale transaction valued at $244.7 thousand. The sale at $48.94 a share has eliminated 5 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -38.39 percent decrease since the transaction reporting date. The company insider is left with 72.27 thousand shares remaining in the account. Jerome Christopher J, who works as EVP, Global Services at the company, performed a sale of 7.81 thousand shares in a transaction worth $397.33 thousand. The disposal recorded on 03/01/2018 was priced at $50.9 per share. The stock price plunged -40.77 percent since the transaction. Jerome Christopher J currently holds a stake of 36.46 thousand in UNM stock which is worth $1.1 million after the insider selling.

The stock is lingering around the initial support level of $27.4. After this, the following support is at the zone of $27.16. Up until the time the UNM stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 63.29 on the daily chart, and this may be a cause for concern. In case the price goes below $27.16 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $27.87 level may cause a pull-back move approaching $28.1 mark.

In the recent trading session, Unum Group (NYSE:UNM) shares gained 9.01% or 2.49 points to reach at $30.14 with a thin trading volume of 1.461 million shares. It opened the trading session at $27.65, the shares rose to $27.85 and dropped to $27.38, the range by which the price of stock traded the whole session. The company now has a market cap of $5.87 billion and currently has 212.22 million outstanding shares. Unum Group (UNM) stock has plunged -4.85 percent of market value in 21 trading days.

UNM stock’s trailing 3-year beta is 1.54, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $4.95 share in the trailing 52 weeks. The stock’s value fallen -5.18 percent year to date (YTD) compared to a decline of -20.43 percent in 52 week’s period. The firm’s shares are still trading -21.28 percent below its 1-year high of $38.29 and 21.97 percent up from 52-week low of $24.71. The average consensus ranking on the company is 3.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Unum Group (UNM) shares are trading at a P/E ratio of 5.39 times earnings posted in the trailing 12 months. The industry UNM deals with has an average P/E of 11.57. Its P/B ratio is standing at 0.6X compared to the 1.4 industry average. It is additionally sporting a 0.52 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.

Past records have indicated that shares in Unum Group rose on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of UNM’s Q1 earnings on May 05. Analysts are predicting revenue to climb 3.1 percent to $3.08B in the financial first quarter, while EPS will soar by about 6.11 percent to $1.39 per share. In the last quarter, it’s earnings of $1.31 per share came worse than the $1.31461, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.99B, missing the $3.02B analysts had expected. Earnings are seen to rise by -43.8 percent this year, 6.51 percent in the coming year and the trend continues by 5.54 percent every year in the next 5 years.