Aflac's 0.08% Gain on 378th-Ranked $280M Volume as Hold Rating Stands Amid $100M Buyback and Dividend Hike

Generated by AI AgentAinvest Market Brief
Friday, Aug 15, 2025 7:28 pm ET1min read
AFL--
Aime RobotAime Summary

- Aflac (AFL) rose 0.08% on 378th-ranked $280M volume, maintaining a "Hold" rating with 13 analysts and a $108.23 average price target.

- The insurer announced a $100M buyback and $0.58 quarterly dividend, while Q2 earnings beat estimates ($1.78/share vs. $1.71) despite 19% revenue decline.

- Institutional investors like Norges Bank increased stakes in Q2, contrasting insider sales, as analysts adjusted price targets between $105-$110 amid 15.32% operating margins.

- A 365-day backtest of top-volume stocks showed 31.52% returns, highlighting short-term momentum risks despite Aflac's 2.2% yield and 23.95 P/E ratio.

Aflac (AFL) edged up 0.08% on August 15, 2025, with a trading volume of $0.28 billion, ranking 378th among U.S. stocks. The insurer maintains a consensus "Hold" rating from 13 analysts, with two sell ratings, eight holds, and three buys, and an average 12-month price target of $108.23. The board recently authorized a $100 million share repurchase program and a $0.58 quarterly dividend, signaling confidence in valuation. Institutional investors, including Norges Bank, increased holdings in Q2, while insiders reduced stakes through recent sales.

Second-quarter earnings surpassed estimates, with $1.78 per share compared to $1.71 expected. Revenue fell 19% year-over-year to $4.16 billion, though margins remained robust at 15.32%. Analysts adjusted price targets, with Raymond James cutting its estimate to $110 from $115 while maintaining an "outperform" rating, and Morgan StanleyMS-- raising its target to $105. The stock’s 52-week range spans $96.95 to $115.50, with a P/E ratio of 23.95 and a 2.2% dividend yield.

A backtest of a strategy buying the top 500 volume-driven stocks and holding for one day from 2022 to 2025 yielded a 31.52% total return over 365 days, averaging 0.98% daily. This reflects short-term momentum capture but underscores market volatility and timing risks inherent in such approaches.

Market Watch column provides a thorough analysis of stock market fluctuations and expert ratings.

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