Erie Indemnity Co. (ERIE) Maintains Strong Performance Despite Challenges
Erie Indemnity Co. (NASDAQ: ERIE) showed resilience in the face of headwinds as it remained only 0.82% away from its 50-day simple moving average. On November 22, 2023, the company started the day with a price increase of 1.46% at $288.95. Throughout the day, its stock rose to $291.54 before dropping to $284.75. Ultimately, it settled at $284.80 at the close.
Taking a long-term perspective, ERIE recorded a 52-week range of $199.49 to $313.87, highlighting its stability and potential for growth. The financial sector firm has achieved an impressive twelve-month sales growth rate of 11.62% for the last half of the decade. During the same period, its annual earnings per share stood at 8.69%.
Despite the challenging market conditions, ERIE has shown a remarkable EPS growth of 49.39% this year. With 46.19 million shares outstanding and a float of $25.14 million, the company boasts a market capitalization of $13.46 billion. Currently, the stock’s 50-day moving average sits at $291.36, while the 200-day moving average is $249.19.
Efficiency is a key factor in assessing a company, and ERIE demonstrates its strength by generating $467,739 per worker during the last fiscal year with 6038 employees on its payroll. Additionally, its income per employee reached $49,448. The company’s receivables turnover stands at 5.54, and its total asset turnover is 1.24. In terms of profitability, ERIE exhibits a gross margin of +12.76, an operating margin of +12.35, and a pretax margin of +13.33.
In analyzing the ownership structure of ERIE, it is worth noting that insider ownership currently stands at 46.01%, while institutional ownership accounts for 36.90%. A recent insider trade involving a senior vice president revealed a sale of 2,000 shares at a rate of $282.52, amounting to a total value of $565,044 and impacting insider ownership by 15,997.
ERIE achieved a net margin of +10.57% and a return on equity of 21.40%, demonstrating its ability to generate profit and provide value to its shareholders. Analysts on Wall Street predict earnings of $19.37 per share for the next fiscal year, indicating a positive outlook for the company.
Looking ahead, ERIE’s EPS is anticipated to increase by 49.39% for the current 12-month fiscal period and reach 9.85 in the upcoming year. It is projected that the company’s EPS will grow by 10.00% over the next five years, surpassing the 8.69% growth achieved in the previous five-year period.
Examining the current performance indicators, ERIE has an average true range (ATR) of 6.19, reflecting its moderate volatility. The stock’s PE ratio stands at $38.00, and its beta score is 0.39. Furthermore, the price-to-sales ratio for the trailing twelve months is 4.29, while the price-to-free cash flow ratio for the same period is 49.40.
ERIE’s diluted EPS for the trailing twelve months is recorded at 7.60, with analysts predicting it to reach 2.13 in the next quarter and 9.85 by the end of the next fiscal year.
In terms of trading volume, ERIE has demonstrated progress, with an average volume of 0.17 million over the past five days compared to a year-to-date volume of 0.14 million. The stock’s stochastic %D over the previous nine days was recorded at 70.12%, while its average true range was 6.26.
Analyzing the stock’s volatility metrics, ERIE’s raw stochastic average in the previous 100 days fell to 78.21%, a significant decline from 84.70% in the last two weeks. The historic volatility over the past 14 days was 21.34% lower than the 34.22% exhibited over the previous 100-day period.
ERIE’s ability to maintain its performance amid challenging market conditions is commendable. As the company continues to adapt and grow, investors can expect positive returns in the coming years. With a strong earnings outlook and impressive long-term EPS growth projections, ERIE remains an attractive option for investors seeking stability and profitability in the insurance brokers industry.
