Stock of the Day

December 9, 2020

Equitable (EQH)

$50.21
+$0.08 (+0.2%)
Market Cap: $13.63B

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

Today's Trend

Equitable Holdings, Inc. (NYSE: EQH) is receiving support from favorable analyst commentary and expectations for shareholder returns, although several insider sales and weak revenue trends remain potential headwinds.

  • KBW reaffirmed its Buy/Outperform view and raised its price target to $67 from $62. The new target implies meaningful upside from recent trading levels and reinforces the bullish analyst outlook for EQH. KBW Reaffirms Buy Rating on Equitable Holdings
  • Merger synergies and capital returns continue to support the investment case. Analysts expect the planned Corebridge Financial combination to generate approximately $550 million in cost synergies and about 10% EPS accretion by 2027. Expected 2026 cash generation of roughly $1.8 billion and buybacks that could reduce the share count by approximately 8% are additional potential catalysts. Equitable Holdings Buybacks and Credit Resilience
  • Equitable’s latest earnings exceeded expectations. Second-quarter EPS was $1.70 versus the $1.65 consensus estimate, improving from $1.10 a year earlier. The company also maintains a quarterly dividend of $0.30 per share.
  • Investors are assessing second-quarter commentary on merger momentum, organic growth and strategic divestitures. Further details from the earnings call may influence expectations for future growth and execution. EQH Q2 Deep Dive
  • Several insiders have recently sold EQH shares. Director Craig Mackay sold 2,200 shares for approximately $113,000, following sales by other directors and Chief Accounting Officer William Eckert. Reports cite 34 insider sales and no purchases over the past six months, which could temper investor confidence. Equitable Insider Selling
  • Revenue remains a key concern. Quarterly revenue declined 29.8% year over year to $1.66 billion, well below the $3.84 billion analyst estimate, limiting the impact of the EPS beat.
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