Zacks Investment Research downgraded shares of RenaissanceRe (NYSE:RNR) from a hold rating to a sell rating in a research note issued to investors on Tuesday.
According to Zacks, “RenaissanceRe’s shares have underperformed the industry in a year’s time. Its weak investment portfolio has been a concern. Its continuous exposure to catastrophe losses also remains a major headwind. Moreover, the company’s bottom line also suffers from continuously rising level of expenses. Increasing level of debt continues to weigh on RenaissanceRe’s margins. However, consistent premium growth bolsters revenue base. In addition, its robust inorganic growth impresses. The company's healthy balance sheet has helped it deploying excess capital to enhance shareholders’ value over the past several quarters. The company expects the recent tax reforn to reduce its net income by $40 milion during the period in which the tax bill will be enacted.”
Several other equities analysts also recently commented on RNR. UBS Group cut their target price on RenaissanceRe from $136.00 to $135.00 and set a neutral rating for the company in a research report on Monday, October 2nd. Wells Fargo & Co restated a market perform rating and set a $125.00 target price (down previously from $140.00) on shares of RenaissanceRe in a research report on Tuesday. Citigroup cut their target price on RenaissanceRe from $148.00 to $146.00 and set a neutral rating for the company in a research report on Monday, October 2nd. Keefe, Bruyette & Woods restated a hold rating and set a $143.00 target price on shares of RenaissanceRe in a research report on Thursday, September 21st. Finally, ValuEngine downgraded RenaissanceRe from a buy rating to a hold rating in a research report on Friday, October 6th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and two have given a buy rating to the company. RenaissanceRe currently has a consensus rating of Hold and a consensus target price of $146.50.
RenaissanceRe (NYSE:RNR) traded up $1.74 during trading on Tuesday, hitting $120.51. The company had a trading volume of 397,544 shares, compared to its average volume of 445,056. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.66 and a quick ratio of 1.66. The company has a market cap of $4,840.00, a P/E ratio of -27.08, a PEG ratio of 1.34 and a beta of 0.67. RenaissanceRe has a 1-year low of $116.50 and a 1-year high of $152.00.
RenaissanceRe (NYSE:RNR) last posted its earnings results on Tuesday, October 31st. The insurance provider reported ($13.81) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($12.25) by ($1.56). The company had revenue of $483.22 million for the quarter, compared to the consensus estimate of $300.46 million. RenaissanceRe had a negative return on equity of 5.82% and a negative net margin of 7.60%. RenaissanceRe’s quarterly revenue was up 70.0% compared to the same quarter last year. During the same quarter last year, the business earned $2.09 EPS. sell-side analysts anticipate that RenaissanceRe will post -8.78 EPS for the current year.
RenaissanceRe declared that its Board of Directors has initiated a stock buyback plan on Friday, November 10th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the insurance provider to buy shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Friday, December 15th were given a $0.32 dividend. The ex-dividend date of this dividend was Thursday, December 14th. This represents a $1.28 annualized dividend and a yield of 1.06%. RenaissanceRe’s payout ratio is -28.76%.
In other RenaissanceRe news, SVP Sean G. Brosnan sold 1,391 shares of RenaissanceRe stock in a transaction on Monday, November 27th. The stock was sold at an average price of $135.73, for a total value of $188,800.43. Following the completion of the transaction, the senior vice president now owns 8,405 shares in the company, valued at approximately $1,140,810.65. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Kevin Odonnell sold 5,000 shares of RenaissanceRe stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $135.58, for a total value of $677,900.00. Following the completion of the transaction, the chief executive officer now owns 193,447 shares of the company’s stock, valued at approximately $26,227,544.26. The disclosure for this sale can be found here. In the last quarter, insiders sold 11,391 shares of company stock valued at $1,524,950. Corporate insiders own 1.80% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of RNR. Schwab Charles Investment Management Inc. raised its position in RenaissanceRe by 1.2% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 142,934 shares of the insurance provider’s stock valued at $19,875,000 after purchasing an additional 1,670 shares during the last quarter. Prudential Financial Inc. increased its stake in shares of RenaissanceRe by 1.2% in the 2nd quarter. Prudential Financial Inc. now owns 28,288 shares of the insurance provider’s stock valued at $3,933,000 after buying an additional 341 shares during the period. Principal Financial Group Inc. increased its stake in shares of RenaissanceRe by 4.8% in the 2nd quarter. Principal Financial Group Inc. now owns 173,944 shares of the insurance provider’s stock valued at $24,187,000 after buying an additional 7,978 shares during the period. Pacad Investment Ltd. acquired a new stake in shares of RenaissanceRe in the 2nd quarter valued at $222,000. Finally, Oppenheimer Asset Management Inc. increased its stake in shares of RenaissanceRe by 2.7% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 2,807 shares of the insurance provider’s stock valued at $390,000 after buying an additional 75 shares during the period. Hedge funds and other institutional investors own 93.33% of the company’s stock.
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RenaissanceRe Company Profile
RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services to a range of customers. The Company’s products include property, casualty and specialty reinsurance and certain insurance products principally distributed through intermediaries. Its segments include Property; Casualty and Specialty, and Other category.
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