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CHATTANOOGA, Tenn. - Unum Group (NYSE: NYSE:UNM), an international provider of workplace benefits and services with a market capitalization of $13.19 billion, has announced a new share repurchase program set to commence on April 1, 2025. The program, approved by the company’s board of directors, will authorize the repurchase of up to $1 billion of its common stock over time. According to InvestingPro data, the company’s stock has delivered an impressive 56.8% return over the past year. This move follows the decision to terminate the current share repurchase program effective March 31, 2025, with any remaining funds under the existing program set to expire on that date.
Management will determine the specific timing and volume of repurchases based on market conditions and other relevant factors. The repurchases may occur through various methods, including open market transactions at prevailing market prices, privately negotiated transactions, preset trading plans in line with Rule 10b5-1, or other means as permitted by federal securities laws. The board retains the authority to suspend, amend, or discontinue the program at any time.
Unum Group, known for its Unum and Colonial Life brands, provides a range of insurance products, including disability, life, accident, critical illness, dental, and vision insurance, as well as leave and absence management support and behavioral health services. In 2024, the company reported revenues of $12.9 billion and paid out benefits totaling $8.0 billion. InvestingPro analysis reveals that Unum has maintained dividend payments for 39 consecutive years and has raised its dividend for 16 straight years, demonstrating strong financial stability. The company currently trades at an attractive P/E ratio of 7.8x. The Fortune 500 company has been recognized for its ethical practices by Ethisphere®. InvestingPro’s comprehensive analysis shows the company maintains a "GREAT" financial health score, with liquid assets exceeding short-term obligations. Discover more insights about Unum Group and 1,400+ other stocks through InvestingPro’s detailed research reports.
The statements regarding the new share repurchase program are forward-looking and are subject to various factors that could cause actual results to differ from current expectations. These factors are detailed in the Risk Factors section of Unum Group’s Annual Report on Form 10-K for the year ended December 31, 2023. The company does not commit to updating any forward-looking statements beyond the date of the press release.
This news article is based on a press release statement from Unum Group.
In other recent news, Unum Group has been in the spotlight with Truist Securities raising its price target for the insurer to $90 from the previous $75, while maintaining a Buy rating. This adjustment follows a revision in the firm’s earnings per share (EPS) projections for Unum Group, with an increase for the year 2025 to $9.20, up from $9.15, and an initial forecast for 2026 set at $10.00. Truist’s revised price target is based on expectations of Unum Group’s continued revenue growth and profitability.
However, Unum Group’s Q4 earnings and revenue missed analyst expectations, with the company posting adjusted earnings per share of $2.03, below the consensus estimate of $2.14. Revenue came in at $3.24 billion, falling short of the projected $3.29 billion. Despite these misses, Unum’s premium income increased 3.1% year-over-year to $2.63 billion, and net investment income rose 2.4% to $543.6 million.
These are recent developments that investors should note. While Truist Securities holds a positive outlook based on Unum’s financial performance and market position within the insurance sector, the Q4 results have fallen short of expectations. Unum Group’s future performance will be closely watched by investors to see if it can meet these financial targets and justify the confidence reflected in Truist Securities’ updated assessment.
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