Metlife (MET) Downgraded by Zacks Investment Research to “Sell”

Metlife (NYSE:MET) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

According to Zacks, “MetLife’s shares have lost more than its industry’s decline in the past year. Moreover, the company has witnessed its 2019 estimates move downward over the last 30- days. The company’s exposure to catastrophe losses and investment in efficiency programs will put pressure on margins. However, its efforts to streamline business, only to focus on core business are really impressive. Its revenues grew in 2017 after declining for two years and the trend is likely to continue in 2018. Its strong international operations and disciplined capital management should drive long-term growth.”

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A number of other equities research analysts have also issued reports on the company. Barclays reduced their price target on Metlife from $60.00 to $57.00 and set an “overweight” rating on the stock in a research report on Monday. Goldman Sachs Group lowered Metlife from a “buy” rating to a “neutral” rating and increased their price target for the company from $55.91 to $61.00 in a research report on Monday, June 4th. ValuEngine lowered Metlife from a “hold” rating to a “sell” rating in a research report on Saturday, June 2nd. Wells Fargo & Co reaffirmed a “buy” rating on shares of Metlife in a research report on Tuesday, May 8th. Finally, Deutsche Bank reduced their price target on Metlife from $51.00 to $48.00 and set a “hold” rating on the stock in a research report on Friday, May 4th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and eight have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $56.73.

Shares of Metlife stock opened at $44.09 on Tuesday. Metlife has a 12 month low of $43.09 and a 12 month high of $55.91. The stock has a market cap of $46.22 billion, a P/E ratio of 9.80, a PEG ratio of 0.79 and a beta of 1.23. The company has a debt-to-equity ratio of 0.30, a current ratio of 0.15 and a quick ratio of 0.15.

Metlife (NYSE:MET) last posted its quarterly earnings results on Wednesday, May 2nd. The financial services provider reported $1.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.19. The company had revenue of $15.15 billion for the quarter, compared to analyst estimates of $15.52 billion. Metlife had a return on equity of 8.70% and a net margin of 6.48%. Metlife’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter last year, the company earned $1.20 EPS. equities analysts expect that Metlife will post 5.07 EPS for the current fiscal year.

Metlife declared that its board has approved a stock repurchase program on Tuesday, May 22nd that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the financial services provider to buy up to 3.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

In other news, Director Gerald L. Hassell purchased 10,000 shares of the business’s stock in a transaction on Wednesday, May 9th. The shares were bought at an average price of $46.18 per share, with a total value of $461,800.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.34% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MET. Diamond Hill Capital Management Inc. increased its position in Metlife by 38.5% during the first quarter. Diamond Hill Capital Management Inc. now owns 10,883,295 shares of the financial services provider’s stock worth $499,434,000 after buying an additional 3,027,327 shares during the period. Old Mutual Global Investors UK Ltd. increased its position in Metlife by 1,712.2% during the first quarter. Old Mutual Global Investors UK Ltd. now owns 1,791,638 shares of the financial services provider’s stock worth $82,218,000 after buying an additional 1,692,775 shares during the period. Ceredex Value Advisors LLC acquired a new position in Metlife during the first quarter worth approximately $65,615,000. BlackRock Inc. increased its position in Metlife by 1.8% during the first quarter. BlackRock Inc. now owns 74,542,993 shares of the financial services provider’s stock worth $3,420,777,000 after buying an additional 1,346,914 shares during the period. Finally, Prudential Financial Inc. increased its position in Metlife by 66.0% during the first quarter. Prudential Financial Inc. now owns 2,899,754 shares of the financial services provider’s stock worth $133,069,000 after buying an additional 1,153,335 shares during the period. 77.25% of the stock is currently owned by institutional investors.

Metlife Company Profile

MetLife, Inc engages in the insurance, annuities, employee benefits, and asset management businesses. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and stable value products, including general and separate account guaranteed interest contracts, and private floating rate funding agreements.

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