Zacks Investment Research downgraded shares of Alleghany (NYSE:Y) from a strong-buy rating to a hold rating in a research report report published on Monday, April 30th.
According to Zacks, “Alleghany’s strong performance across insurance and reinsurance operations will continue to fuel premium revenues. It strives to grow via acquisitions and organic initiatives as these not only diversify and strengthen its portfolio but also expand its international footprint. A solid balance sheet with healthy capital position supports shareholder-friendly moves and growth initiatives. It continues to expect compound book value per share growth of 7-10% over a long term. But, exposure to cat loss induces volatility in underwriting results, while rising expenses weighs on margin expansion. Also, the company has not witnessed any revisions for its 2018 and 2019 estimates. Shares of Alleghany have underperformed the industry year to date. It is set to release its first quarter results on May 3. A Zacks Rank #3 and an Earnings ESP of 0.00% make prediction difficult.”
Several other analysts have also commented on the stock. TheStreet raised shares of Alleghany from a c+ rating to a b rating in a research note on Monday, February 26th. JMP Securities reissued an outperform rating and set a $650.00 target price (up from $625.00) on shares of Alleghany in a research note on Thursday, February 22nd. One analyst has rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $666.50.
Shares of NYSE:Y traded down $1.61 during trading on Monday, reaching $583.35. 50,000 shares of the company’s stock traded hands, compared to its average volume of 74,055. Alleghany has a 12 month low of $579.96 and a 12 month high of $585.01. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.18. The company has a market cap of $8.92 billion, a PE ratio of 286.87 and a beta of 0.90.
Alleghany (NYSE:Y) last posted its earnings results on Thursday, May 3rd. The insurance provider reported $11.24 EPS for the quarter, topping the consensus estimate of $8.37 by $2.87. Alleghany had a net margin of 1.74% and a return on equity of 1.12%. The firm had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.45 billion. During the same quarter in the prior year, the firm earned $9.67 EPS. Alleghany’s quarterly revenue was up 3.4% on a year-over-year basis. research analysts forecast that Alleghany will post 36.7 EPS for the current fiscal year.
In related news, Director William K. Lavin sold 530 shares of the company’s stock in a transaction that occurred on Tuesday, February 27th. The shares were sold at an average price of $610.38, for a total value of $323,501.40. Following the completion of the sale, the director now owns 2,735 shares in the company, valued at approximately $1,669,389.30. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 4.00% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in Y. Advisor Group Inc. increased its stake in Alleghany by 64.5% in the 4th quarter. Advisor Group Inc. now owns 227 shares of the insurance provider’s stock valued at $136,000 after buying an additional 89 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new position in Alleghany in the 4th quarter valued at approximately $179,000. Schroder Investment Management Group acquired a new position in Alleghany in the 1st quarter valued at approximately $191,000. IBM Retirement Fund acquired a new position in Alleghany in the 1st quarter valued at approximately $200,000. Finally, Fiduciary Trust Co. acquired a new position in Alleghany in the 4th quarter valued at approximately $201,000. Hedge funds and other institutional investors own 83.54% of the company’s stock.
Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in two segments, Reinsurance and Insurance. The Reinsurance segment offers property reinsurance products, including fire, allied lines, auto physical damage, and homeowners multiple peril reinsurance products; and casualty and other reinsurance products, such as liability, medical malpractice, ocean marine and aviation, auto liability, accident and health, surety, and credit reinsurance products.
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