Employers (NYSE:EIG) Trading Down 9.5% – Here’s What Happened

Shares of Employers Holdings Inc (NYSE:EIG) dropped 9.5% during trading on Friday . The stock traded as low as $39.09 and last traded at $38.4250. Approximately 102,430 shares changed hands during mid-day trading, a decline of 60% from the average daily volume of 255,318 shares. The stock had previously closed at $42.45.

Employers News Summary

Here are the key news stories impacting Employers this week:

• Positive Sentiment: Q4 EPS beat — Employers reported $0.66 EPS vs. consensus ~$0.41, surprising on earnings-per-share despite underwriting headwinds. Zacks: EIG Tops Q4 Earnings
• Positive Sentiment: Dividend maintained and capital return — the board declared a $0.32 quarterly cash dividend (3.4% yield), signaling shareholder returns and steady capital policy. MarketBeat: Dividend Announcement
• Positive Sentiment: Recapitalization completed — management announced completion of a $125 million recapitalization, which should strengthen the balance sheet and support capacity for underwriting and growth. Business Insider: Q4 Results & Recapitalization
• Positive Sentiment: Strategic product expansion — launched an Excess Workers’ Compensation product for self-insured organizations, extending addressable market and offering analytics/risk services that can drive higher‑margin business over time. GlobeNewswire: New Excess Product
• Neutral Sentiment: Management commentary and call transcripts are available — dig into the earnings call for color on loss drivers, pricing, and deployment of recapitalization proceeds. Seeking Alpha: Q4 Call Transcript Fool: Call Transcript
• Neutral Sentiment: Book value and policy counts — adjusted book value per share and policies in‑force rose year over year, showing some underlying franchise resilience. GlobeNewswire: Full Results
• Negative Sentiment: Revenue and underwriting weakness — Q4 revenue (~$170.5M) missed estimates (~$217M), and full‑year net income plunged vs. prior year (from $118.6M to $10.8M) driven by a higher loss & LAE ratio and a GAAP combined ratio >110%, which pressures profitability and investor confidence. Yahoo Finance: Revenue Miss
• Negative Sentiment: Investment volatility and lower adjusted earnings — net realized/unrealized investment losses and sharply lower annual GAAP net income reduce cushions against underwriting shocks. These items amplify short‑term downside despite EPS beat. GlobeNewswire: Full Results

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on EIG shares. Zacks Research raised shares of Employers from a “strong sell” rating to a “hold” rating in a research note on Tuesday, December 30th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Employers in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, Employers has an average rating of “Hold”.

Employers Trading Down 7.5%

The business has a 50-day moving average of $43.68 and a 200 day moving average of $42.01. The firm has a market capitalization of $882.52 million, a P/E ratio of 15.52 and a beta of 0.57.

Employers (NYSE:EIG) last announced its quarterly earnings results on Thursday, February 19th. The financial services provider reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.25. Employers had a return on equity of 3.38% and a net margin of 6.91%.The business had revenue of $170.50 million for the quarter, compared to analyst estimates of $217.35 million. During the same quarter in the prior year, the company earned $1.15 earnings per share. The company’s quarterly revenue was down 21.3% on a year-over-year basis. As a group, research analysts forecast that Employers Holdings Inc will post 3.63 EPS for the current year.

Employers Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 18th. Investors of record on Wednesday, March 4th will be given a $0.32 dividend. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.28 annualized dividend and a yield of 3.3%. Employers’s dividend payout ratio (DPR) is presently 50.59%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Employers by 4.3% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 6,172 shares of the financial services provider’s stock valued at $291,000 after purchasing an additional 257 shares in the last quarter. Aquatic Capital Management LLC grew its holdings in Employers by 1.2% during the third quarter. Aquatic Capital Management LLC now owns 22,623 shares of the financial services provider’s stock worth $961,000 after buying an additional 277 shares in the last quarter. Deutsche Bank AG raised its position in Employers by 1.3% in the 4th quarter. Deutsche Bank AG now owns 24,084 shares of the financial services provider’s stock valued at $1,040,000 after buying an additional 302 shares during the last quarter. Osaic Holdings Inc. lifted its stake in Employers by 133.5% during the 2nd quarter. Osaic Holdings Inc. now owns 635 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 363 shares in the last quarter. Finally, Clearstead Advisors LLC boosted its holdings in Employers by 145.5% during the 4th quarter. Clearstead Advisors LLC now owns 621 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 368 shares during the last quarter. Institutional investors and hedge funds own 80.49% of the company’s stock.

About Employers

Employers Holdings, Inc (NYSE: EIG) is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers’ compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries.

The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors.