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How to buy Erie Indemnity Company stock | $247.65

Own Erie Indemnity Company stock in just a few minutes.

Fact checked

Erie Indemnity Company is an insurance brokers business based in the US. Erie Indemnity Company shares (ERIE) are listed on the NASDAQ and all prices are listed in US Dollars. Erie Indemnity Company employs 5,700 staff and has a trailing 12-month revenue of around USD$2.5 billion.

How to buy shares in Erie Indemnity Company

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Erie Indemnity Company. Find the stock by name or ticker symbol: ERIE. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Erie Indemnity Company reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$247.65, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Erie Indemnity Company, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Erie Indemnity Company. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Erie Indemnity Company share price

Use our graph to track the performance of ERIE stocks over time.

Erie Indemnity Company shares at a glance

Information last updated 2020-12-27.
Latest market closeUSD$247.65
52-week rangeUSD$127.1417 - USD$256.77
50-day moving average USD$236.1147
200-day moving average USD$216.6666
Wall St. target priceUSD$115
PE ratio 43.8446
Dividend yield USD$4.14 (1.7%)
Earnings per share (TTM) USD$5.548

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Erie Indemnity Company stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Erie Indemnity Company price performance over time

Historical closes compared with the close of $247.65 from 2020-12-18

1 week (2021-01-11) -3.69%
1 month (2020-12-18) 247.65
3 months (2020-10-16) 8.14%
6 months (2020-07-17) 21.54%
1 year (2020-01-17) 46.11%
2 years (2019-01-18) 73.24%
3 years (2018-01-18) 111.68%
5 years (2016-01-15) 170.39%

Is Erie Indemnity Company under- or over-valued?

Valuing Erie Indemnity Company stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Erie Indemnity Company's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Erie Indemnity Company's P/E ratio

Erie Indemnity Company's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 44x. In other words, Erie Indemnity Company shares trade at around 44x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Erie Indemnity Company's PEG ratio

Erie Indemnity Company's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.05. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Erie Indemnity Company's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Erie Indemnity Company's EBITDA

Erie Indemnity Company's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$358.7 million.

The EBITDA is a measure of a Erie Indemnity Company's overall financial performance and is widely used to measure a its profitability.

Erie Indemnity Company financials

Revenue TTM USD$2.5 billion
Operating margin TTM 13.44%
Gross profit TTM USD$357.3 million
Return on assets TTM 10.26%
Return on equity TTM 24.52%
Profit margin 11.49%
Book value $23.852
Market capitalisation USD$12.7 billion

TTM: trailing 12 months

Shorting Erie Indemnity Company shares

There are currently 805,255 Erie Indemnity Company shares held short by investors – that's known as Erie Indemnity Company's "short interest". This figure is 5.5% down from 851,888 last month.

There are a few different ways that this level of interest in shorting Erie Indemnity Company shares can be evaluated.

Erie Indemnity Company's "short interest ratio" (SIR)

Erie Indemnity Company's "short interest ratio" (SIR) is the quantity of Erie Indemnity Company shares currently shorted divided by the average quantity of Erie Indemnity Company shares traded daily (recently around 99537.082818294). Erie Indemnity Company's SIR currently stands at 8.09. In other words for every 100,000 Erie Indemnity Company shares traded daily on the market, roughly 8090 shares are currently held short.

However Erie Indemnity Company's short interest can also be evaluated against the total number of Erie Indemnity Company shares, or, against the total number of tradable Erie Indemnity Company shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Erie Indemnity Company's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Erie Indemnity Company shares in existence, roughly 20 shares are currently held short) or 0.0322% of the tradable shares (for every 100,000 tradable Erie Indemnity Company shares, roughly 32 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Erie Indemnity Company.

Find out more about how you can short Erie Indemnity Company stock.

Erie Indemnity Company's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Erie Indemnity Company.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Erie Indemnity Company's total ESG risk score

Total ESG risk: 27.66

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Erie Indemnity Company's overall score of 27.66 (as at 01/01/2019) is nothing to write home about – landing it in it in the 43rd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Erie Indemnity Company is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Erie Indemnity Company's environmental score

Environmental score: 5.43/100

Erie Indemnity Company's environmental score of 5.43 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Erie Indemnity Company is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Erie Indemnity Company's social score

Social score: 9.39/100

Erie Indemnity Company's social score of 9.39 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Erie Indemnity Company is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Erie Indemnity Company's governance score

Governance score: 17.84/100

Erie Indemnity Company's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Erie Indemnity Company is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Erie Indemnity Company's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Erie Indemnity Company scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Erie Indemnity Company has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Erie Indemnity Company was last rated for ESG on: 2019-01-01.

Total ESG score 27.66
Total ESG percentile 43.14
Environmental score 5.43
Environmental score percentile 5
Social score 9.39
Social score percentile 5
Governance score 17.84
Governance score percentile 5
Level of controversy 2

Erie Indemnity Company share dividends

89%

Dividend payout ratio: 89.38% of net profits

Recently Erie Indemnity Company has paid out, on average, around 89.38% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.7% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Erie Indemnity Company shareholders could enjoy a 1.7% return on their shares, in the form of dividend payments. In Erie Indemnity Company's case, that would currently equate to about $4.14 per share.

Erie Indemnity Company's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Erie Indemnity Company's most recent dividend payout was on 20 January 2021. The latest dividend was paid out to all shareholders who bought their shares by 4 January 2021 (the "ex-dividend date").

Have Erie Indemnity Company's shares ever split?

Erie Indemnity Company's shares were split on a 3:1 basis on 13 May 1996. So if you had owned 1 share the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Erie Indemnity Company shares – just the quantity. However, indirectly, the new 66.7% lower share price could have impacted the market appetite for Erie Indemnity Company shares which in turn could have impacted Erie Indemnity Company's share price.

Erie Indemnity Company share price volatility

Over the last 12 months, Erie Indemnity Company's shares have ranged in value from as little as $127.1417 up to $256.77. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Erie Indemnity Company's is 0.4094. This would suggest that Erie Indemnity Company's shares are less volatile than average (for this exchange).

Erie Indemnity Company overview

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, policy issuance, and renewal services for the policyholders on behalf of the Erie Insurance Exchange. Its sales related services include agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing; and other services consist of customer services and administrative support services, as well as information technology services. Erie Indemnity Company was founded in 1925 and is based in Erie, Pennsylvania.

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