Tue, Mar. 24, 3:54 PM
- Buyback-happy U.S. firms are prohibited from repurchasing shares from about five weeks prior to releasing quarterly earnings to about 48 hours after those reports. These blackout periods, says Goldman, may offer an especially tasty time for investors to pick up shares of their favorites.
- "High valuations in the absence of corporate demand may weigh on stock prices," says Goldman's Amanda Sneider, and particular areas of focus are tech, consumer discretionary, and financials - they've accounted for more than 50% of buyback activity.
- Goldman's buyback blackout theme buys: SanDisk (NASDAQ:SNDK), Yahoo (NASDAQ:YHOO), Travelers (NYSE:TRV), Apple (NASDAQ:AAPL), Juniper Networks (NYSE:JNPR), Xerox (NYSE:XRX), Torchmark (NYSE:TMK), F5 Networks (NASDAQ:FFIV), Citrix Systems (NASDAQ:CTXS), Aon (NYSE:AON), Moody's (NYSE:MCO), VeriSign (NASDAQ:VRSN), Hartford Financial (NYSE:HIG), Ameriprise (NYSE:AMP), Corning (NYSE:GLW), Time Warner (NYSE:TWX), Seagate Technology (NASDAQ:STX), Viacom (NASDAQ:VIAB), Legg Mason (NYSE:LM), XL Group (NYSE:XL), DirecTV (NASDAQ:DTV), Allstate (NYSE:ALL), Nvidia (NASDAQ:NVDA), CBS (NYSE:CBS), Macy's (NYSE:M), Kohl's (NYSE:KSS).
Tue, Mar. 24, 7:38 AM
Fri, Mar. 6, 9:46 AM
- A turnaround from the action earlier this year - financials (XLF +0.9%) are marching higher in early action as the averages slip, as nervous investors buy back in following the stress test results. Also helping are surging interest rates following the strong jobs number.
- Looking at a pretty broad screen of bank names, just two - Goldman Sachs and Zions, both of which barely passed the stress test - are lower. Among the others: Bank of America (BAC +3.7%), JPMorgan (JPM +1.1%), U.S. Bancorp (USB +1.6%), Regions FInancial (RF +2.3%), KeyCorp (KEY +2.7%), PNC Financial (PNC +2.3%), BB&T (BBT +2.4%), Fifth Third (FITB +2.2%), Comerica (CMA +3.8%), BNY Mellon (BK +2.9%).
- Among those starved for higher rates: MetLife (MET +3%), Prudential (PRU +3.3%), Lincoln National (LNC +4.1%), AIG (AIG +1.4%), Hartford (HIG +2%), E*Trade (ETFC +3.9%), Schwab (SCHW +4.4%), Ameritrade (AMTD +4.3%).
- Previously: Futures slip after jobs number as yields and dollar soar (March 6)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, KBWC, FINZ, KRS
Thu, Feb. 26, 4:48 PM
Mon, Feb. 2, 4:42 PM
- Q4 core earnings of $426M or $0.96 per share vs. $382M and $0.79 one year ago. $300M of stock repurchased during quarter. Book value per share excluding AOCI of $40.71 up 4% Y/Y.
- P&C earnings of $316M up 5% Y/Y. Underlying combined ratio of 92.0 improves 3.8 points from a year ago. Investment income of $282M down 13%.
- Group Benefits earnings of $45M down 18% Y/Y.
- Mutual Funds earnings of $27M up 35%.
- Talcott Resolution earnings of $98M down 1% as VA block continues to run down. VA contract count of 674K down from 774K.
- Net investment income of $752M down 7% Y/Y, with annualized investment yield of 4.2% down 20 basis points.
- 2015 outlook: Core earnings of $1.55B-$1.65B (4-11% growth from 2014). Investment income yield for P&C expected at 3.9%.
- Conference call tomorrow at 9 ET
- Previously: Hartford Financial beats by $0.03, misses on revenue (Feb. 2)
- HIG -0.2% after hours
Mon, Feb. 2, 4:18 PM| Comment!
Sun, Feb. 1, 5:35 PM
Dec. 19, 2014, 9:03 AM
Nov. 19, 2014, 10:05 AM
- Valuation and the stock's lagging performance make Prudential (PRU +0.1%) a relative bargain, says the team, with the company's analyst day on December 11 a possible catalyst to move shares higher.
- Prudential is down 8.8% YTD, lagging names like Hartford (NYSE:HIG), MetLife (NYSE:MET), AIG, and Lincoln National (NYSE:LNC) by anywhere from 1K to 2K basis points.
Oct. 27, 2014, 4:31 PM
- Q3 core earnings of $477M up 15% from a year ago. Core EPS of $1.06 does even better thanks to share repurchases, up 25%.
- Property & Casualty: Written premiums of $2.603B up 2% Y/Y. Underlying combined ratio improves 260 basis points to 90.2%. Core earnings of $353M up 34%.
- Group Benefits: Core earnings of $38M up 6% Y/Y.
- Mutual Funds: Core earnings of $22M up 22%. Total AUM of $73.295B up 10%. Annuity mutual fund AUM of $22.867B down 11%.
- Talcott Resolution: Core earnings of $122M up 6%. Variable annuity contract count of 694K down 13%. VA account value of $54.349B down 12%.
- Investments: NII of $810M up 3%. Annualized investment yield of 4.5% up 20 basis points.
- Book value per share excluding AOCI of $39.82 up 1% from the start of the year. Share count of 450.8M down 7%. 8.9M shares repurchased (about 2% of the float) during Q for $845M.
- Conference call tomorrow at 9 ET
- Previously: Hartford Financial beats by $0.23, beats on revenue
- HIG -0.11% AH
Oct. 27, 2014, 4:19 PM| Comment!
Oct. 26, 2014, 5:35 PM
Oct. 16, 2014, 4:46 PM
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Sep. 10, 2014, 9:59 AM
- "The key Debatable Point on Hartford (HIG +1.5%) is the value of Talcott (the U.S. annuity runoff) and whether management can create more value by selling the runoff now versus running it off internally," says analyst Randy Binner. His team's FCF analysis shows an NPV of about $4.4B vs. the $3.8B estimated sale price (75% of statutory capital).
- Binner's senses the market would like to see a quick sale, but the above analysis suggests holding onto the business for another 5 years and then selling is a better deal. He notes market reaction to quick sales by CNO Financial and XL Group was muted, with participants focusing on the book value loss rather than the de-risking.
- The stock is upgraded to a Buy with price target lifted to $44 from $37.
Jul. 30, 2014, 4:51 PM
- Core earnings of $144M or $0.31 per share vs. $231M and $0.47 one year ago. Unfavorable items accounted for $0.38 per share negative impact on core EPS; one year ago, unfavorable items caused a $0.19 hit.
- Capital management is boosted by $1.275B to $3.931B - dividend is lifted by 20% to $0.18 per share, and buyback is raised $775M to $2.775B. Another $500M of the $1.275B cap mgmt expansion will be used for debt reduction.
- Book value per share excluding AOCI of $39.21 vs. $39.30 at start of year.
- Conference call tomorrow at 11 ET
- Previously: Hartford Financial misses by $0.36
- HIG -1.4% AH
HIG vs. ETF Alternatives
Hartford Financial Services Group Inc is an insurance & financial services Company. Its business segments includings Property & Casualty Commercial, Consumer Markets, Property & Casualty Other Operations, Group Benefits, and Mutual Funds.
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