Here’s the Reason for Increase in Unum Group (UNM) Stock in Aftermarket

Unum Group (UNM), a company that provides financial protection benefit solutions together with its subsidiaries, has increased 2.02% in aftermarket trading session. As a result, UNM was changing hands at $28.25 when last checked. The steady increase could be attributed to the announcement of share repurchase authorization. On Monday, UNM closed the day at $27.69 after declining 0.61% in regular trading hours.

UNM BoD authorized a share repurchase

On 25th October, UNM announced that its board of directors had authorized the repurchase of up to $250 million of the company’s outstanding common stock through 31st December 2022. The timing and amount of the share repurchase under the authorization which could be made through open market purchase, privately negotiated transactions, or through any of the other means could be determined by the management of the company. The decisions would be taken primarily by looking upon the market considerations. The repurchase program could be modified, suspended, or terminated at any time. The company said that it would provide an update on its capital management strategy as part of its third-quarter earnings call on November 3rd, 2021.

Q2 2021 financial results

On 3rd August, UNM reported the financial results for the second quarter of the fiscal year 2021, which ended on 30th June. The company generated total revenue of $2.99 billion during the quarter against $3.02 billion for the same period of 2020. The total benefits and expenses for the period were $2.73 billion against $2.68 billion for the same period of 2020. The company generated a net income of $182.9 million for the three months against $265.5 million for the same period of 2020. The net income per basic and diluted share for the period was $0.89 against $1.30 for the same period of 2020. Commenting on the results, Richard P. McKenney, president, and chief executive officer of UNM said that the company is excited with the strong quarterly results which are highlighted by the positive investment returns and aided by the improved dynamics of COVID as compared to the first quarter of 2021. He further said that the positive results drive an improvement in the company’s outlook for a full year.

What’s ahead for UNM?

UNM has seen a relatively stable trend during the last few weeks. It has declined a mere 0.4% during the last three months. Analysts are of the view that in the wake of protection from the effects of the pandemic, the companies like Unum would gain popularity in the masses, indirectly affecting its stock performance.