Zacks Investment Research Upgrades RenaissanceRe Holdings Ltd. (RNR) to “Hold”
RenaissanceRe Holdings Ltd. (NYSE:RNR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “RenaissanceRe has been witnessing a pressure on pricing due to the difficult reinsurance market over past few quarters that has again kept on affecting top-line growth. The company's weak investment portfolio and a decline in managed catastrophe premiums raise caution. However, its strength lies in its inorganic growth initiatives and capital deployments. Moreover, shift to casualty and specialty insurance from property catastrophe insurance is likely to drive long-term growth. A modest financial position has paved the way for capital deployment activities. Based on this, the company’s board recently increased share repurchase by $500 million. Restructuring, strategic divestitures and strong ratings are also positives. For the third quarter the Zacks Consensus earning estimate stands at $1.94 per share which translates into year over year decline of 24.8%.”
A number of other analysts have also recently issued reports on RNR. Citigroup Inc. reaffirmed a “neutral” rating on shares of RenaissanceRe Holdings in a research report on Tuesday, June 21st. Keefe, Bruyette & Woods cut RenaissanceRe Holdings from an “outperform” rating to a “market perform” rating in a report on Monday, July 11th. One analyst has rated the stock with a sell rating and six have given a hold rating to the company’s stock. RenaissanceRe Holdings presently has an average rating of “Hold” and an average target price of $119.14.
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Shares of RenaissanceRe Holdings (NYSE:RNR) traded up 2.10% during midday trading on Friday, hitting $120.54. 226,637 shares of the company were exchanged. The firm has a market cap of $4.97 billion, a P/E ratio of 12.23 and a beta of 0.49. The company’s 50 day moving average price is $119.32 and its 200 day moving average price is $116.51. RenaissanceRe Holdings has a one year low of $107.27 and a one year high of $122.97.
RenaissanceRe Holdings (NYSE:RNR) last released its quarterly earnings data on Tuesday, July 26th. The company reported $1.55 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.92 by $0.37. RenaissanceRe Holdings had a net margin of 27.26% and a return on equity of 9.41%. The business earned $483.30 million during the quarter, compared to analyst estimates of $410.83 million. During the same period in the previous year, the business earned $2.18 earnings per share. The business’s quarterly revenue was up 21.6% on a year-over-year basis. Equities analysts expect that RenaissanceRe Holdings will post $7.44 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Thursday, September 15th were given a dividend of $0.31 per share. The ex-dividend date was Tuesday, September 13th. This represents a $1.24 annualized dividend and a dividend yield of 1.05%. RenaissanceRe Holdings’s dividend payout ratio is currently 12.50%.
In other RenaissanceRe Holdings news, CEO Kevin Odonnell sold 3,000 shares of the stock in a transaction on Tuesday, October 4th. The stock was sold at an average price of $119.33, for a total transaction of $357,990.00. Following the sale, the chief executive officer now owns 267,944 shares in the company, valued at $31,973,757.52. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Ian D. Branagan sold 2,000 shares of the stock in a transaction on Thursday, August 4th. The stock was sold at an average price of $117.32, for a total value of $234,640.00. Following the sale, the senior vice president now owns 55,589 shares in the company, valued at approximately $6,521,701.48. The disclosure for this sale can be found here. Company insiders own 2.40% of the company’s stock.
Large investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in RenaissanceRe Holdings by 2.5% in the second quarter. Vanguard Group Inc. now owns 3,524,571 shares of the company’s stock valued at $413,926,000 after buying an additional 87,599 shares in the last quarter. State Street Corp increased its stake in RenaissanceRe Holdings by 23.5% in the first quarter. State Street Corp now owns 2,477,658 shares of the company’s stock valued at $296,905,000 after buying an additional 471,491 shares in the last quarter. BlackRock Fund Advisors increased its stake in RenaissanceRe Holdings by 7.6% in the second quarter. BlackRock Fund Advisors now owns 2,127,662 shares of the company’s stock valued at $249,873,000 after buying an additional 150,103 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in RenaissanceRe Holdings by 6.7% in the second quarter. Dimensional Fund Advisors LP now owns 1,164,621 shares of the company’s stock valued at $136,766,000 after buying an additional 73,621 shares in the last quarter. Finally, Cooke & Bieler LP increased its stake in RenaissanceRe Holdings by 15.4% in the second quarter. Cooke & Bieler LP now owns 1,120,151 shares of the company’s stock valued at $131,551,000 after buying an additional 149,369 shares in the last quarter. Hedge funds and other institutional investors own 94.78% of the company’s stock.
About RenaissanceRe Holdings
RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services. The Company’s core products include property catastrophe reinsurance and specialty reinsurance risks. The Company’s segments include Catastrophe Reinsurance, Specialty Reinsurance and Lloyd’s. Catastrophe Reinsurance includes catastrophe reinsurance and certain property catastrophe joint ventures managed by the Company’s ventures unit.
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