Erie Indemnity (ERIE) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Erie Indemnity (NASDAQ:ERIE) from a hold rating to a buy rating in a research note published on Wednesday morning, Zacks.com reports. The brokerage currently has $220.00 price objective on the financial services provider’s stock.

According to Zacks, “Erie Indemnity Company’s principal business activity consists of management of the affairs for Erie Insurance Exchange. The company also participates in the property/casualty insurance business through its three wholly owned subsidiaries, Erie Insurance Company, Erie Insurance Company of New York, and Erie Insurance Property and Casualty Company and through its management of the Flagship City Insurance Company, a subsidiary of Erie Insurance Exchange. “

ERIE has been the subject of several other reports. BidaskClub cut shares of Erie Indemnity from a strong-buy rating to a buy rating in a research note on Wednesday, March 13th. ValuEngine upgraded shares of Erie Indemnity from a hold rating to a buy rating in a research note on Monday, February 4th.

ERIE stock opened at $198.50 on Wednesday. The firm has a market capitalization of $9.17 billion, a PE ratio of 36.03 and a beta of 0.51. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 0.10. Erie Indemnity has a 12 month low of $110.95 and a 12 month high of $209.33.

Erie Indemnity (NASDAQ:ERIE) last posted its earnings results on Thursday, May 2nd. The financial services provider reported $1.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.37 by $0.07. Erie Indemnity had a net margin of 12.39% and a return on equity of 31.44%. The firm had revenue of $594.11 million during the quarter, compared to analysts’ expectations of $598.96 million. During the same period in the previous year, the business posted $1.26 EPS. On average, research analysts expect that Erie Indemnity will post 6.08 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 23rd. Investors of record on Tuesday, July 9th will be paid a $0.90 dividend. This represents a $3.60 annualized dividend and a dividend yield of 1.81%. The ex-dividend date of this dividend is Monday, July 8th. Erie Indemnity’s dividend payout ratio is currently 65.34%.

Large investors have recently bought and sold shares of the business. Xact Kapitalforvaltning AB grew its holdings in shares of Erie Indemnity by 31.6% in the first quarter. Xact Kapitalforvaltning AB now owns 4,165 shares of the financial services provider’s stock valued at $744,000 after purchasing an additional 1,000 shares during the period. AJO LP grew its holdings in shares of Erie Indemnity by 859.3% in the first quarter. AJO LP now owns 108,636 shares of the financial services provider’s stock valued at $19,394,000 after purchasing an additional 97,311 shares during the period. NumerixS Investment Technologies Inc purchased a new stake in shares of Erie Indemnity in the first quarter valued at about $36,000. Swiss National Bank grew its holdings in shares of Erie Indemnity by 3.1% in the first quarter. Swiss National Bank now owns 46,309 shares of the financial services provider’s stock valued at $8,267,000 after purchasing an additional 1,400 shares during the period. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Erie Indemnity by 0.9% in the first quarter. Dimensional Fund Advisors LP now owns 282,728 shares of the financial services provider’s stock valued at $50,469,000 after purchasing an additional 2,550 shares during the period. Institutional investors own 31.70% of the company’s stock.

About Erie Indemnity

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, and policy issuance services for the policyholders on behalf of the Erie Insurance Exchange. Its sales related services include agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing, as well as provides administrative support, information technology, and customer services.

Further Reading: Calculating net profit and net profit margin ratio

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