15 Small Cap Financial Stocks Hedge Funds Are Buying

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6. Unum Group (NYSE:UNM)

Market Capitalization: $13.37 Billion

Number of Hedge Fund Holders: 43

Unum Group (NYSE:UNM) is a global provider of workplace benefits and other financial services. It mainly operates through its Colonial Life and Unum brands, offering a range of services including disability, life, accident, critical illness, cancer coverage insurance, and more.

On April 11, Barclays raised the firm’s price target on the stock from $85 to $89, while keeping an overweight rating on the stock. During fiscal 2024, Unum Group (NYSE:UNM) grew its earnings per share by 10%, which came in above expectations of 7% to 9% growth. Management noted that most of its products exceeded expectations, whereas the overall ROE from operations remained high at over 20%.

Moreover, Unum Group (NYSE:UNM) also raised its dividends by 15% and repurchased $1 billion in shares throughout the year reflecting a strong performance year-wise. Management noted that its UK operations remained strong with full-year premium growth of 9.4% and sales growth of 6.6%. Looking ahead, the company expects to maintain growth in the upper GBP 20 million range for 2025, reflecting continued confidence in the UK market’s performance. It is one of the small-cap financial stocks hedge funds are buying.

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