UNM Should I Buy
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Unum Group (UNM) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators show a bearish trend, and the company's recent financial performance reflects significant declines in net income and EPS. While there are positive catalysts such as dividend increases and share buybacks, the overall sentiment, including analyst ratings and options data, suggests caution. Holding the stock or waiting for a better entry point would be more prudent.
The stock is in a bearish trend with the MACD histogram at -0.611 and negatively expanding, RSI at 11.78 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 70.842), but the overall trend remains negative.
Unum raised its dividend by 10% and plans another 10% increase in
The company repurchased $1 billion in stock in 2025 and plans another ~$1 billion in buybacks for
Digital investments are expected to enhance profitability and customer acquisition.
Adjusted EPS for 2025 fell short of expectations due to increased benefits experience.
Net income dropped by 50.07% YoY, and EPS decreased by 45.83% YoY in Q4
Analysts have lowered price targets, citing a 'rough disability quarter' and slightly weaker 2026 guidance.
In Q4 2025, revenue increased slightly by 0.23% YoY to $3.24 billion. However, net income dropped significantly by 50.07% YoY to $174.1 million, and EPS declined by 45.83% YoY to $1.04. The benefit ratio for Group Disability was 62.4%, leading to a 22.8% decline in adjusted operating income.
Analysts have a mixed to cautious outlook. JPMorgan, Evercore ISI, and Barclays have all recently lowered their price targets, though some maintain Neutral or Overweight ratings. The guidance for 2026 is slightly weaker, and concerns over disability claims and rising costs are noted.
