The Futility of Employers Holdings Inc. (NYSE:EIG)’s Fundamentals

Employers Holdings Inc. (NYSE:EIG) previous close was $29.36 while the outstanding shares total 30.70M. The firm has a beta of 0.14, a 12-month trailing P/E ratio of 13.93, and a growth ratio of 1.39. EIG’s shares traded higher over the last trading session, gaining 0.14% on 06/26/20. The shares fell to a low of $28.80 before closing at $29.40. Intraday shares traded counted 0.54 million, which was -99.6% lower than its 30-day average trading volume of 269.89K. The stock’s Relative Strength Index (RSI) is 45.01, with weekly volatility at 2.67% and ATR at 1.11. The EIG stock’s 52-week price range has touched low of $25.53 and a $45.23 high.

Investors have identified the Insurance – Specialty company Employers Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $891.70 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Employers Holdings Inc. (EIG) Fundamentals that are to be considered.

EIG were able to record 13.6 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 19.2 million. In cash movements, the company had a total of 15.5 million as operating cash flow.

Potential earnings growth for Employers Holdings Inc. (EIG)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Employers Holdings Inc. recorded a total of 127.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -73.46% coming in sequential stages and their sales for the third quarter reducing by -65.59%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 172.3 million trying to sell their products during the last quarter, with the result yielding a gross income of -45.3 million. This allows shareholders to hold on to 30.70M with the revenue now reading -1.14 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.50 cents a share).

Having a look at the company’s valuation, the company is expected to record 3.20 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EIG sounds very interesting.

Is the stock of EIG attractive?

In related news, SVP, Chief Underwriting Office, Rogers Lawrence S sold 1,360 shares of the company’s stock in a transaction that recorded on May 20. The sale was performed at an average price of 29.38, for a total value of 39,957. As the sale deal closes, the Director, Blakey Richard W now bought 500 shares of the company’s stock, valued at 12,950. Also, Director, McSally Michael J bought 3,000 shares of the company’s stock in a deal that was recorded on May 06. The shares were price at an average price of 29.54 per share, with a total market value of 88,620. Following this completion of acquisition, the President & CEO, Dirks Douglas D now holds 6,000 shares of the company’s stock, valued at 175,560. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.40%.

1 out of 4 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Employers Holdings Inc.. 0 analysts has assigned a Sell rating on the EIG stock. The 12-month mean consensus price target for the company’s shares has been set at $50.00.