RenaissanceRe (RNR) Rating Increased to Hold at Zacks Investment Research

RenaissanceRe (NYSE:RNR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “RenaissanceRe’s fourth-quarter  earnings per share of $1.05 handily beat the Zacks Consensus Estimate by 38%, but  declined 64% year over year due to higher expenses. The company’s consistent premium growth bolsters the revenue base. Its inorganic growth impresses. It's healthy balance sheet also remains a major positive. Although its shares have underperformed the industry in a year’s time,  solid fourth-quarter results and strong fundamentals are expected to favor the stock going forward. Its weak investment portfolio has been a concern. Continuous catastrophe losses also remain 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. “

Several other equities analysts have also issued reports on the company. Wells Fargo & Co restated a “hold” rating and set a $125.00 target price on shares of RenaissanceRe in a research report on Wednesday, January 31st. UBS Group boosted their target price on RenaissanceRe from $135.00 to $144.00 and gave the stock a “neutral” rating in a research report on Monday, November 6th. Morgan Stanley decreased their target price on RenaissanceRe from $144.00 to $142.00 and set an “equal weight” rating for the company in a research report on Thursday, November 2nd. Citigroup upgraded RenaissanceRe from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $151.00 to $157.00 in a research report on Thursday, November 2nd. Finally, Keefe, Bruyette & Woods restated a “hold” rating and set a $136.00 target price on shares of RenaissanceRe in a research report on Monday, October 16th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $146.50.

RenaissanceRe (NYSE RNR) traded down $1.18 during trading on Tuesday, hitting $127.29. The stock had a trading volume of 280,908 shares, compared to its average volume of 473,943. The firm has a market cap of $5,199.78, a price-to-earnings ratio of -20.07, a P/E/G ratio of 1.38 and a beta of 0.63. RenaissanceRe has a 52 week low of $116.50 and a 52 week high of $152.00. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.77 and a quick ratio of 1.66.

RenaissanceRe (NYSE:RNR) last posted its earnings results on Wednesday, January 31st. The insurance provider reported $1.05 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.76 by $0.29. The company had revenue of $288.22 million during the quarter, compared to analyst estimates of $227.65 million. RenaissanceRe had a negative return on equity of 7.68% and a negative net margin of 10.57%. The company’s revenue for the quarter was up 31.3% compared to the same quarter last year. During the same period in the previous year, the company earned $2.66 EPS. equities research analysts expect that RenaissanceRe will post 9.88 EPS for the current fiscal year.

RenaissanceRe declared that its board has authorized a stock buyback plan on Friday, November 10th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the insurance provider to reacquire shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

In other RenaissanceRe news, CEO Kevin Odonnell sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $131.65, for a total value of $658,250.00. Following the sale, the chief executive officer now owns 190,707 shares in the company, valued at approximately $25,106,576.55. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Sean G. Brosnan sold 1,391 shares of the business’s stock in a transaction that occurred on Monday, November 27th. The shares were sold at an average price of $135.73, for a total value of $188,800.43. Following the completion of the sale, the senior vice president now owns 8,405 shares in the company, valued at approximately $1,140,810.65. The disclosure for this sale can be found here. Insiders own 1.80% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Verition Fund Management LLC bought a new stake in RenaissanceRe in the 2nd quarter valued at approximately $383,000. Legal & General Group Plc lifted its stake in RenaissanceRe by 8.3% in the 3rd quarter. Legal & General Group Plc now owns 291,126 shares of the insurance provider’s stock valued at $39,353,000 after acquiring an additional 22,205 shares in the last quarter. Barings LLC bought a new stake in RenaissanceRe in the 3rd quarter valued at approximately $896,000. Zurich Insurance Group Ltd FI bought a new stake in RenaissanceRe in the 2nd quarter valued at approximately $830,000. Finally, Stifel Financial Corp lifted its stake in RenaissanceRe by 238.3% in the 3rd quarter. Stifel Financial Corp now owns 6,394 shares of the insurance provider’s stock valued at $864,000 after acquiring an additional 4,504 shares in the last quarter. Hedge funds and other institutional investors own 90.46% 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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