Institutional Investors Increase Holdings in F&G Annuities Amid Earnings Beat
Wellington Management Group LLP acquired a new position in F&G Annuities & Life, Inc. during the first quarter, purchasing 42,351 shares valued at approximately $1.53 million. Several other institutional investors, including Raymond James Financial Inc., Dimensional Fund Advisors LP, Price T Rowe Associates Inc., BNP Paribas Financial Markets, and Bank of America Corp DE, also adjusted their holdings in the company during the last quarter, reflecting active institutional interest. Currently, institutional investors and hedge funds own about 95.86% of F&G Annuities & Life's outstanding shares.
Analyst coverage of F&G shows mixed opinions with three analysts maintaining a Hold rating, while Wall Street Zen upgraded the stock to a Buy. Barclays raised its price target on F&G from $37 to $40, maintaining an Equal Weight rating, and the average target price from analysts stands at $44.33. This suggests moderate confidence in the company's near-term outlook amidst market volatility.
F&G Annuities & Life reported strong second-quarter earnings with an EPS of $0.77, surpassing analyst expectations by $0.13. The company's revenue also significantly exceeded estimates, reporting $2.74 billion against expectations of $1.35 billion. Its return on equity stands at 11.51%, with a net margin of 6.45%, indicating efficient profitability relative to equity and revenue.
The company declared a quarterly dividend of $0.22 per share, equating to a 2.5% yield, with a dividend payout ratio of 35.48%. The dividend is set to be paid on September 30th to shareholders of record as of September 16th, positioning F&G as a dividend-paying entity within the annuities and life insurance sector.
F&G Annuities & Life specializes in fixed annuity and life insurance products, including retirement planning and wealth transfer solutions. Founded in 1959 and headquartered in Des Moines, Iowa, it maintains a debt-to-equity ratio of 0.49 and a market capitalization of approximately $4.65 billion. The company's stock demonstrated a trading range between $30.01 and $50.75 in the past year.
The active repositioning by institutional investors and positive earnings results suggest ongoing confidence in F&G's business model amid changing market conditions. The firm’s financial metrics and dividend policy reinforce its position in the insurance industry, relevant for market participants monitoring insurer performance, investment potential, and sector compliance trends.