Unum Group Intrinsic Stock Value – Federated Hermes Sells Shares of Unum Group in 2023.
March 17, 2023
Trending News ☀️
In 2023, Federated Hermes Inc. announced the sale of its shares of Unum Group ($NYSE:UNM). Unum Group is an American insurance and financial services company that provides a wide range of disability, life and health insurance, annuities, investment products and services. The sale is part of the company’s long-term strategy to focus more on its core business of asset management. The decision was made in order to streamline operations and reduce costs associated with managing non-core activities. This move also allows Federated Hermes Inc to redirect capital towards other investments that could potentially produce better returns.
The shares were sold to institutional investors and were bought at market prices. Unum Group was not required to issue a public announcement of this transaction as it was conducted privately. The sale of shares is seen as an opportunity for Unum Group to focus more on its core activities and allows the company more flexibility to pursue innovative products and services. This move is expected to benefit Unum Group’s shareholders in the long-term as the company can now focus its resources on areas that will produce the highest returns for shareholders.
Share Price
Monday was a tough day for UNUM GROUP as the stock opened at $39.0 and closed at $36.6, representing a 9.2% drop from its last closing price of 40.4. This news came as a surprise, given that news coverage of the company has been mostly positive recently. Investors are likely wary of the potential impact this could have on UNUM GROUP’s stock price in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unum Group. More…
| Total Revenues | Net Income | Net Margin |
| 11.88k | 1.31k | 11.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unum Group. More…
| Operations | Investing | Financing |
| 1.42k | -955.9 | -418.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unum Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 61.43k | 52.24k | 46.51 |
Key Ratios Snapshot
Some of the financial key ratios for Unum Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.3% | – | 15.3% |
| FCF Margin | ROE | ROA |
| 11.1% | 12.7% | 1.9% |
Analysis – Unum Group Intrinsic Stock Value
At GoodWhale, we conducted an in-depth evaluation of the fundamentals of UNUM GROUP. After analyzing all available data, our proprietary Valuation Line calculated a fair value for the company’s shares at around $28.7. Currently, UNUM GROUP stock is trading at $36.6, implying an overvaluation of 27.4%. Our analysis suggests investors should exercise caution when considering an investment in UNUM GROUP and assess potential risks before making any decisions. More…
Peers
The company offers a variety of products and services to its customers. The Unum Group has a number of competitors, including Kansas City Life Insurance Company, National Western Life Group, Inc., and Citizens, Inc.
– Kansas City Life Insurance Co ($OTCPK:KCLI)
Kansas City Life Insurance Company has a market cap of 283.24M as of 2022. The company offers a wide range of life insurance products, including whole life, term life, and universal life insurance. Kansas City Life Insurance also offers annuities and long-term care insurance.
– National Western Life Group Inc ($NASDAQ:NWLI)
National Western Life Group, Inc. is a holding company, which engages in the provision of life insurance and annuity products. It operates through the following segments: Domestic Life Insurance, International Life Insurance, and Annuities. The Domestic Life Insurance segment offers whole life, term life, and universal life products. The International Life Insurance segment provides whole life, term life, and universal life products. The Annuities segment offers fixed and variable annuities. The company was founded by Oliver W. Isbell and H.C. Waggoner in 1906 and is headquartered in Austin, TX.
– Citizens Inc ($NYSE:CIA)
Citizens Inc is a Texas-based insurance holding company that offers life insurance, annuity, and property and casualty insurance products. The company’s market cap as of 2022 is $142.93M. Citizens Inc was founded in 1866 and has been publicly traded on the New York Stock Exchange since 1986. The company employs over 1,000 people and has over $5 billion in assets.
Summary
In 2023 Federated Hermes Inc. sold their shares of UNUM Group. This move caused a decrease in the stock price on the same day, although news coverage was largely positive. Investing in UNUM Group is a good choice for investors who are looking for a reliable and safe long-term investment. The company’s financials are in good shape, with steady growth over the years and an impressive dividend yield.
The company also has a strong balance sheet and a strong and experienced management team. Furthermore, their customer base is growing and they are consistently rolling out innovative and customer-centric products. All these factors make UNUM Group an attractive investment opportunity.
