RenaissanceRe Holdings Ltd. (RNR) Downgraded by Zacks Investment Research
RenaissanceRe Holdings Ltd. (NYSE:RNR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Shares of RenaissanceRe have underperformed the industry year to date. The company’s exposure to pricing pressures continues to bother. Moreover, its weak investment portfolio has been raising concern over past many quarters. Being a property and casualty insurer, its continuous exposure to catastrophe losses remains a major headwind as it significantly weighs on the margins. The company's bottom line also suffers from continuously rising level of expenses. RenaissanceRe will release its third-quarter results after the market closes on Oct 31, 2017.”
Other research analysts have also issued reports about the stock. Keefe, Bruyette & Woods reissued a “hold” rating and set a $143.00 price objective on shares of RenaissanceRe Holdings in a report on Wednesday, June 28th. UBS AG decreased their price objective on shares of RenaissanceRe Holdings from $136.00 to $135.00 and set a “neutral” rating for the company in a report on Monday, October 2nd. ValuEngine raised shares of RenaissanceRe Holdings from a “hold” rating to a “buy” rating in a report on Friday, July 28th. Wells Fargo & Company reissued a “hold” rating and set a $140.00 price objective on shares of RenaissanceRe Holdings in a report on Wednesday, July 26th. Finally, Morgan Stanley reissued an “equal weight” rating and set a $144.00 price objective (up from $138.00) on shares of RenaissanceRe Holdings in a report on Friday, July 7th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $142.58.
RenaissanceRe Holdings (NYSE:RNR) traded down 0.14% during trading on Tuesday, reaching $138.72. 136,121 shares of the company’s stock traded hands. The stock has a market capitalization of $5.59 billion, a P/E ratio of 11.84 and a beta of 0.65. RenaissanceRe Holdings has a 1-year low of $120.55 and a 1-year high of $152.00. The stock has a 50-day moving average price of $134.97 and a 200 day moving average price of $140.26.
RenaissanceRe Holdings (NYSE:RNR) last released its quarterly earnings results on Tuesday, July 25th. The insurance provider reported $2.79 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.33 by $0.46. The firm had revenue of $555.75 million for the quarter, compared to the consensus estimate of $540.65 million. RenaissanceRe Holdings had a net margin of 28.30% and a return on equity of 8.49%. The firm’s quarterly revenue was up 6.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.55 EPS. Equities research analysts expect that RenaissanceRe Holdings will post ($5.39) earnings per share for the current year.
RenaissanceRe Holdings declared that its board has approved a stock buyback plan on Wednesday, August 2nd that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the insurance provider to repurchase up to 8.4% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its stock is undervalued.
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In other news, CEO Kevin Odonnell sold 5,000 shares of RenaissanceRe Holdings stock in a transaction dated Monday, October 2nd. The shares were sold at an average price of $134.89, for a total value of $674,450.00. Following the completion of the transaction, the chief executive officer now directly owns 197,904 shares of the company’s stock, valued at approximately $26,695,270.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Ross Curtis sold 5,300 shares of RenaissanceRe Holdings stock in a transaction dated Wednesday, July 26th. The shares were sold at an average price of $148.23, for a total transaction of $785,619.00. Following the completion of the transaction, the senior vice president now directly owns 98,564 shares of the company’s stock, valued at $14,610,141.72. The disclosure for this sale can be found here. Insiders sold a total of 48,644 shares of company stock valued at $7,132,297 over the last ninety days. Company insiders own 1.80% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. State Board of Administration of Florida Retirement System boosted its holdings in shares of RenaissanceRe Holdings by 2.6% in the 2nd quarter. State Board of Administration of Florida Retirement System now owns 69,320 shares of the insurance provider’s stock valued at $9,639,000 after buying an additional 1,788 shares during the period. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its holdings in shares of RenaissanceRe Holdings by 16.0% in the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 12,740 shares of the insurance provider’s stock valued at $1,771,000 after buying an additional 1,761 shares during the period. ARGA Investment Management LP boosted its holdings in shares of RenaissanceRe Holdings by 5.1% in the 2nd quarter. ARGA Investment Management LP now owns 12,380 shares of the insurance provider’s stock valued at $1,721,000 after buying an additional 600 shares during the period. Great Lakes Advisors LLC boosted its holdings in shares of RenaissanceRe Holdings by 22.2% in the 2nd quarter. Great Lakes Advisors LLC now owns 17,029 shares of the insurance provider’s stock valued at $2,368,000 after buying an additional 3,096 shares during the period. Finally, Mitsubishi UFJ Trust & Banking Corp boosted its holdings in shares of RenaissanceRe Holdings by 3.9% in the 2nd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 158,425 shares of the insurance provider’s stock valued at $22,029,000 after buying an additional 5,975 shares during the period. 91.72% of the stock is owned by institutional investors and hedge funds.
About RenaissanceRe Holdings
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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