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F&G Annuities & Life($FG) CEO Snaps Up 55,000 Shares Following Stock Plunge, Insiders Bet on 'Undervaluation'

05/12/2025 20:42

Christopher Blunt, CEO of F&G Annuities & Life ($FG), has been aggressively purchasing company stock over the past two months, acquiring a total of 55,000 shares worth approximately $1.84 million since March. This concentrated insider buying follows a significant stock price decline and sends a powerful signal of confidence to investors. Blunt's buying spree began shortly after the company reported disappointing Q4 2024 results on February 21st. F&G posted earnings of $1.12 per share, missing analyst expectations of $1.20, which triggered an 8.2% single-day stock price plunge. The downward trend continued through mid-March, culminating in another sharp decline from $42 to the $34-35 range between March 20-21. What's particularly noteworthy is the cluster of substantial insider purchases immediately following this steep price decline. CEO Blunt purchased 10,000 shares each on March 24th, 25th, and 27th for a total of 30,000 shares at an average price of $35.55. When the stock price dropped again to around $30 in early May, he added another 25,000 shares on May 9th and 12th. Blunt wasn't alone in his bullish actions. Other key insiders joined the buying, with EVP Michael Gravelle acquiring 7,000 shares ($252,000) on March 27th and Director Celina Wang Doka purchasing 3,000 shares ($105,720) on March 25th. The most substantial transaction came from major shareholder Fidelity National Financial, Inc., which bought a massive 4,500,000 shares worth $151.2 million on March 24th. Christopher Blunt has been leading F&G Annuities & Life since its spin-off from Fidelity National Financial in 2022, bringing over 20 years of financial services experience to the role. A veteran in the insurance and annuity industry, Blunt previously held senior executive positions at MassMutual Financial Group and New York Life. This concentrated insider buying can be interpreted as a strong vote of confidence in the company's long-term prospects despite recent earnings shortfalls. Even as F&G significantly missed earnings expectations again in Q1 2025 with EPS of $0.72 versus the anticipated $1.19, the company exceeded revenue expectations, reporting $2.18 billion against forecasts of $1.46 billion. F&G Annuities & Life is a mid-sized financial company specializing in annuity and life insurance products, with a current market capitalization of approximately $4.9 billion. The recent earnings challenges are primarily attributed to decreased net investment income due to interest rate cuts and declining sales volumes. According to Piper Sandler, Q4 2024 net sales dropped to $2.44 billion, marking the first year-over-year decline since Q2 2023. Despite these challenges, the company projects EPS growth from $5.54 to $6.10 per share over the next year, representing a 10.11% increase and suggesting management's confidence in medium-term growth prospects. The current P/E ratio of 6.47 sits below industry averages, potentially indicating undervaluation. Analysts maintain an average price target of $37.00, suggesting a 22.6% upside from the current price of $30.17. However, most analysts currently recommend a 'hold' position, suggesting investors should consider a longer-term approach rather than expecting immediate momentum. The broader U.S. financial markets have experienced increased volatility recently, with the S&P 500 declining 3.7% due to concerns over President Trump's tariff policies. The U.S. dollar recorded its largest daily decline since November 2022, falling approximately 1.7%, which adds to the uncertain environment for financial stocks like F&G. Nevertheless, the concentrated buying by the CEO and major insiders suggests that the current depressed stock price may present a buying opportunity. The sequential purchases by Blunt and the substantial investment by the major shareholder particularly signal strong conviction in the company's long-term value proposition despite near-term headwinds.

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