3. Equitable Holdings Inc. (NYSE:EQH)
Year-to-Date Performance: 37.20%
Number of Hedge Fund Holders: 44
Equitable Holdings Inc. (NYSE:EQH) is an American financial services and insurance company that ranks among the top 3 on our list of hot insurance stocks to buy right now. The company operates through two main segments: Equitable Financial Life Insurance Company and AllianceBernstein. Equitable Financial offers annuity and life insurance products, while AllianceBernstein focuses on asset management.
In the second quarter of 2024, Equitable Holdings Inc. (NYSE:EQH) showcased strong earnings momentum, driven by organic growth across its Retirement, Asset Management, and Wealth Management sectors. The US retirement market is currently favorable, and the company is well-positioned to take advantage of demographic trends and macroeconomic conditions.
A key highlight was the partnership with BlackRock announced in April 2024. This collaboration introduced the LifePath Paycheck retirement income solution to defined contribution plans, allowing employees to access guaranteed income through target date funds. Plan participants can access the guaranteed income by purchasing annuity contracts issued by Equitable.
This initiative not only addresses the growing retirement savings crisis but also highlights Equitable Holdings Inc.’s (NYSE:EQH) commitment to offering sustainable financial solutions that help individuals grow and protect their wealth. In the second quarter alone, Equitable Holdings Inc. (NYSE:EQH) received inflows exceeding $500 million from the first four clients utilizing the LifePath Paycheck solution, showcasing strong demand and positioning the company for future growth in the in-plan annuity market.
Equitable Holdings Inc.’s (NYSE:EQH) financial results for Q2 2024 were impressive. The company reported non-GAAP operating earnings per share of $1.43, a 23% increase from the same quarter last year. Additionally, the company achieved record Retirement net inflows of $2.3 billion, which included $500 million from the BlackRock LifePath Paycheck initiative. AllianceBernstein also contributed with $1.3 billion in active net inflows. The total assets under management and administration reached a record $986 billion, enhancing both fee-based and spread-based earnings. For the quarter, Equitable Holdings Inc. (NYSE:EQH) reported a net income of $428 million, equating to $1.23 per share.
The company expects to generate between $1.4 billion and $1.5 billion in cash for 2024, representing an increase of 8% to 15% compared to 2023. Equitable Holdings Inc. (NYSE:EQH) aims to grow this cash generation to $2 billion annually by 2027.
This strong cash flow supports consistent capital returns to shareholders, with a payout ratio of 67% over the past 6 quarters, within its target range of 60% to 70%. During this period, Equitable Holdings Inc. (NYSE:EQH) has reduced its outstanding shares by 12%, further enhancing shareholder value.
Equitable Holdings Inc. (NYSE:EQH) demonstrates a solid business model with robust growth strategies in place. The combination of strong financial performance, innovative product offerings like LifePath Paycheck, and effective cash management makes it an attractive investment opportunity.
According to Insider Monkey’s database, Equitable Holdings Inc. (NYSE:EQH) has gained significant interest from institutional investors, with the number of hedge fund holders increasing to 44 in Q2 2024, up from 32 in the previous quarter.
