Deutsche Bank Downgrades Montpelier Re Holdings to Hold (MRH)
Montpelier Re Holdings (NYSE:MRH) was downgraded by analysts at Deutsche Bank from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday, TheFlyOnTheWall.com reports. They currently have a $31.00 price target on the stock, down from their previous price target of $38.00. Deutsche Bank’s price objective points to a potential upside of 4.62% from the stock’s previous close.
The analysts wrote, “We are downgrading the shares to Hold from Buy following disappointing 2Q14 results. Our buy thesis had been predicated on confidence that Montpelier, when confronted with poor pricing, would prefer to shrink its capital base than write business with sub-par returns. While the company is already small from a market cap and market impact perspective, we believe this would not deter the company from shrinking. However, the capital base has modestly grown as return on capital at risk declines. We are downgrading shares to Hold, believing it unlikely that the shares will advance to 1.0x price-to-book.”
Several other analysts have also recently commented on the stock. Analysts at Zacks reiterated an “outperform” rating on shares of Montpelier Re Holdings in a research note on Thursday. They now have a $35.00 price target on the stock. Separately, analysts at Barclays raised their price target on shares of Montpelier Re Holdings from $28.00 to $29.00 in a research note on Monday, June 30th. They now have an “underweight” rating on the stock. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $31.88.
Montpelier Re Holdings (NYSE:MRH) traded down 0.10% on Thursday, hitting $29.50. 77,324 shares of the company’s stock traded hands. Montpelier Re Holdings has a 1-year low of $24.38 and a 1-year high of $32.63. The stock has a 50-day moving average of $31.70 and a 200-day moving average of $30.10. The company has a market cap of $1.362 billion and a price-to-earnings ratio of 5.80.
Montpelier Re Holdings (NYSE:MRH) last released its earnings data on Monday, July 28th. The company reported $0.76 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.99 by $0.23. During the same quarter in the prior year, the company posted $0.93 earnings per share. Analysts expect that Montpelier Re Holdings will post $3.58 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.70%. The ex-dividend date is Friday, September 26th.
In other Montpelier Re Holdings news, major shareholder Re Holdings Ltd Montpelier acquired 10,900 shares of Montpelier Re Holdings stock on the open market in a transaction dated Wednesday, July 23rd. The shares were purchased at an average price of $19.90 per share, with a total value of $216,910.00. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Major shareholders that own 10% or more of a company’s stock are required to disclose their transactions with the SEC.
Montpelier Re Holdings Ltd. through its subsidiaries in Bermuda, the United States, the United Kingdom and Switzerland, provides customized and insurance and reinsurance solutions to the global market.
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