Ontario Teachers Pension Plan Reduces Aflac Holdings by 36%

The Ontario Teachers Pension Plan Board has decreased its stake in Aflac Incorporated (NYSE: AFL) by 36.0% during the second quarter of 2024. According to HoldingsChannel.com, the pension fund sold 5,948 shares, leaving it with 10,560 shares valued at approximately $1,114,000 at the end of the most recent quarter.

This reduction in holdings comes as several other large investors have also adjusted their positions in Aflac. For instance, UBS Asset Management, a distinct business unit of UBS Asset Management Americas LLC, increased its holdings by 1.1% in the first quarter, now owning 5,307,681 shares worth $590,161,000 after acquiring an additional 56,776 shares.

Similarly, the Goldman Sachs Group Inc. raised its position by 10.8%, now holding 3,575,054 shares valued at $397,510,000 following an acquisition of 349,787 shares. Other notable increases include Guinness Asset Management LTD, which grew its position by 19.4% and now owns 2,372,484 shares worth $250,187,000.

Aflac’s stock opened at $114.27 on Monday, down 0.6%. The company has a market capitalization of $59.89 billion, a P/E ratio of 25.91, and a debt-to-equity ratio of 0.33. Over the past year, Aflac’s shares have fluctuated between a low of $96.95 and a high of $115.84.

Aflac Announces Dividend Increase and Share Repurchase Program

In corporate developments, Aflac recently declared a quarterly dividend of $0.61 per share, set to be paid on March 2, 2024. Shareholders of record as of February 18, 2024 will receive this dividend, marking an increase from the previous quarterly amount of $0.58. This equates to an annualized dividend of $2.44 and a yield of 2.1%. The company’s dividend payout ratio stands at 30.29%.

Additionally, Aflac announced a share repurchase program, initiated on August 12, allowing the company to buy back up to 100 million shares of its stock through open market purchases. Such programs often signal management’s belief that the stock is undervalued.

Analysts Project Growth and Insider Activity

Analysts have recently provided updated ratings and price targets for Aflac. Keefe, Bruyette & Woods raised their price target from $108.00 to $110.00, assigning a “market perform” rating. In contrast, Piper Sandler set a target of $125.00 and rated the stock as “overweight.”

Other firms, including Barclays and JPMorgan Chase & Co., adjusted their targets to $104.00 and $101.00 respectively. Currently, three analysts rate Aflac as a “buy,” six as a “hold,” and two as a “sell,” resulting in an average rating of “hold” with a price target of $110.50.

On the insider trading front, Frederic Jean Guy Simard, Executive Vice President, sold 1,722 shares on November 6 at an average price of $112.50, totaling $193,725. Following this transaction, Simard holds 1,364 shares valued at approximately $153,450. Additionally, Director Joseph L. Moskowitz sold 1,000 shares for $114,000, reducing his ownership by 4.06%.

Insiders currently own 0.90% of Aflac’s stock, indicating a modest level of insider ownership.

Aflac Incorporated operates primarily through its subsidiaries, offering supplemental health and life insurance products in both Japan and the United States. The company’s Japan segment provides a range of insurance products including cancer and medical insurance, as well as life insurance options.

For further insights on Aflac and its shareholders, visit HoldingsChannel.com for the latest filings and insider trading information.