SPRINGFIELD, IL—Marita Zuraitis, the President and CEO of Horace Mann Educators Corp (NYSE:HMN), recently executed a series of stock transactions involving the company's common stock. According to a regulatory filing, Zuraitis sold shares worth approximately $2.9 million over the course of several days.
The sales were conducted at prices ranging from $40.872 to $42.33 per share. These transactions were part of a broader set of activities that included multiple acquisitions and sales of stock by Zuraitis.
In addition to the sales, Zuraitis also acquired shares through the exercise of stock options, valued at a total of approximately $2.6 million, with each share priced at $31.01. These acquisitions were part of her compensation plan.
Following these transactions, Zuraitis continues to hold a substantial number of shares in the company. Horace Mann Educators Corp, a leading provider of insurance and financial solutions tailored to educators, is headquartered in Springfield, Illinois.
In other recent news, Horace Mann Educators Corp. reported a significant 73% increase in core earnings to $31.3 million in the third quarter of 2024, with revenues also rising by 9%. This robust growth comes despite a $22.5 million impact from Hurricane Helene. The company also reported sales growth in Auto, Life, and Individual Supplemental Lines, and maintains its full-year core EPS guidance of $2.40 to $2.70.
In an adjustment to their stance, Keefe, Bruyette & Woods downgraded Horace Mann shares from Outperform to Market Perform, while raising the price target to $44.00 from the previous $39.00. The firm also increased its earnings per share (EPS) estimates for Horace Mann, raising the 2024 EPS estimate to $2.60 from $2.50, and adjusting the 2025 and 2026 estimates upward to $3.55 and $4.00, respectively.
These revised EPS expectations are based on anticipated higher income from the Property & Casualty and Supplemental & Group Benefits sectors, offset by a projected decrease in income from the Life & Retirement segment. The firm justified the increase in the price target by applying a multiple of 12.4 times the estimated 2025 EPS and 11.0 times the projected 2026 EPS.
In the earnings call, Horace Mann's management expressed optimism about growth opportunities and profitability in all segments, despite a 6% decrease in core earnings in the Supplemental & Group Benefits segment. The company also repurchased 256,000 shares at a cost of $8.5 million. These are among the recent developments for Horace Mann Educators Corp.
InvestingPro Insights
Horace Mann Educators Corp (NYSE:HMN) has demonstrated strong financial performance and shareholder value, as evidenced by recent InvestingPro data and tips. The company's stock has shown impressive momentum, with a 20.55% price total return over the past month and a 27.16% return over the last three months. This aligns with the recent stock transactions by CEO Marita Zuraitis, potentially reflecting confidence in the company's near-term prospects.
InvestingPro Tips highlight that Horace Mann has raised its dividend for 14 consecutive years and maintained dividend payments for 33 consecutive years. This commitment to shareholder returns is further underscored by the current dividend yield of 3.23%. The company's financial stability is evident in its liquid assets exceeding short-term obligations, which is particularly relevant given the recent stock option exercises by the CEO.
With a P/E ratio of 16.71 and a price-to-book ratio of 1.33, Horace Mann appears to be reasonably valued relative to its earnings and book value. The company's revenue growth of 10.71% over the last twelve months and an EBITDA growth of 390.36% in the same period indicate strong operational performance, which may have contributed to the stock trading near its 52-week high.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Horace Mann Educators Corp, providing deeper insights into the company's financial health and market position.
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