On Tuesday, RBC Capital expressed continued confidence in Voya Financial (NYSE:VOYA) by maintaining its Outperform rating and a price target of $83.00. The firm's stance comes ahead of the company's second-quarter earnings report, scheduled for July 30th, 2024.
The firm's analysts have adjusted their earnings estimates for Voya Financial, taking into account new information regarding alternative investment income and updated market and assets under management (AUM) assumptions. This revision reflects the latest financial details disclosed by the company, which are pertinent to the forthcoming earnings results.
RBC Capital has highlighted the attractive aspects of Voya Financial's operations, specifically its capital-efficient and high free cash flow (FCF) generating business model. These characteristics are seen as strong indicators of the company's financial health and operational efficiency.
In addition, the firm recognizes Voya Financial's potential for organic growth, suggesting that the company is well-positioned to expand its business through inherent business activities without relying on acquisitions or additional investment.
The reaffirmation of the $83.00 price target indicates that RBC Capital anticipates the company's stock to perform well, maintaining a positive outlook on Voya Financial's market position and financial prospects as it approaches the release of its second-quarter earnings at the end of July.
In other recent news, Voya Financial saw a 23% increase in adjusted operating earnings per share (EPS) to $1.77 in the first quarter of 2024, keeping it on track to meet its full-year EPS target range of $8.25 to $8.45. Voya's performance was bolstered by positive net inflows and strong sales momentum in retirement and group benefits segments.
Additionally, Voya announced a new $500 million share repurchase authorization, demonstrating its commitment to returning $800 million of excess capital to shareholders within the year. Piper Sandler, after a meeting with Voya's top management, maintained its Overweight rating on the company and reiterated its price target of $86.00. The firm highlighted several areas for improvement that could stabilize and increase earnings over time.
Despite a slight decline in revenue yields in the Investment Management sector due to a mix shift, Voya's expansion into lower deductible levels in its stop-loss business is expected to contribute to sales growth. These are some of the recent developments for Voya Financial.
InvestingPro Insights
As Voya Financial (NYSE:VOYA) gears up for its second-quarter earnings report, current data from InvestingPro provides an in-depth look at the company's financial metrics. Voya's market capitalization stands at $7.27 billion, with a compelling price-to-earnings (P/E) ratio of 9.99, suggesting that the stock may be undervalued relative to its earnings. Moreover, the company has demonstrated robust revenue growth of 20.85% over the last twelve months as of Q1 2024, underpinning the positive outlook expressed by RBC Capital.
InvestingPro Tips highlight that Voya Financial is not only trading at a low P/E ratio relative to near-term earnings growth but also boasts a consistent record of dividend growth, having increased its dividend for 5 consecutive years. These factors, combined with the company's ability to maintain dividend payments over 12 consecutive years, paint a picture of a financially stable entity with a commitment to shareholder returns. For investors seeking deeper analysis and more InvestingPro Tips, such as the company's share buyback activities and liquidity status, visiting the dedicated InvestingPro page for Voya Financial could provide valuable insights. Additionally, users can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a wealth of investment information and analysis.
With 7 additional InvestingPro Tips available, investors can further explore the nuances of Voya Financial's market dynamics and potential investment opportunities. As the second-quarter earnings date approaches, these insights could prove crucial for informed decision-making.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.