Caesars Entertainment misses Q2 earnings expectations, shares edge lower
Investing.com - BMO Capital initiated coverage on Horace Mann Educators (NYSE:HMN) with an Outperform rating and a $48.00 price target on Monday. According to InvestingPro data, the stock appears undervalued, with a P/E ratio of 14.75 and strong dividend history spanning 34 consecutive years of payments.
The research firm highlighted that companies with captive audiences tend to generate healthy shareholder returns, comparing the situation to "paying $7 for a Coke at a ballgame" where competition isn’t solely based on offering the lowest prices.
BMO Capital cited Primerica (NYSE:PRI), Allstate (NYSE:ALL), Aflac (NYSE:AFL), Globe Life (NYSE:GL), and more recently CNO as examples of companies that have demonstrated to investors the value of a captive salesforce.
The firm’s earnings per share (EPS) estimates for Horace Mann Educators are aligned with consensus for 2025, while running 2% above consensus for 2026 and 1% above for 2027.
Horace Mann Educators Corporation provides insurance and financial services primarily to educators and school employees across the United States.
In other recent news, Horace Mann Educators Corporation has amended its credit agreement, extending the termination date to May 19, 2030, as disclosed in a recent SEC filing. This extension with PNC Bank as the administrative agent pushes the previous termination date from July 12, 2026. Additionally, Horace Mann announced a $50 million share repurchase program as part of its long-term strategy to enhance shareholder value, following $130.9 million in repurchases since 2011. Analysts at Raymond (NSE:RYMD) James have lifted their price target for Horace Mann shares to $49, maintaining a Strong Buy rating, citing the company’s robust distribution network and customer relationships. Meanwhile, JMP analysts have reiterated a Market Perform rating, noting the company’s efforts to achieve target margins in the property and casualty insurance sector by 2025. During Horace Mann’s recent Annual Meeting of Shareholders, nine directors were elected, and executive compensation and auditors were approved. The company has also set ambitious financial goals, including a high single-digit compound annual growth rate in revenue over the next three years and a projected increase in return on equity to 12-13%. These developments reflect Horace Mann’s strategic initiatives and financial targets aimed at driving growth and shareholder value.
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