ProAssurance (NYSE:PRA) Shares Gap Up Following Strong Earnings

ProAssurance Co. (NYSE:PRA) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $13.82, but opened at $14.90. ProAssurance shares last traded at $15.60, with a volume of 34,006 shares changing hands.

The insurance provider reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.04 by $0.04. ProAssurance had a negative net margin of 3.39% and a negative return on equity of 0.53%. The company had revenue of $284.97 million during the quarter, compared to the consensus estimate of $233.62 million. During the same period in the previous year, the firm earned ($0.15) earnings per share. ProAssurance’s revenue for the quarter was up 4.5% on a year-over-year basis.

Analysts Set New Price Targets

A number of brokerages have commented on PRA. Piper Sandler reduced their price objective on ProAssurance from $16.00 to $15.00 and set an “overweight” rating on the stock in a research note on Monday, March 4th. JMP Securities restated a “market outperform” rating and issued a $22.00 price target on shares of ProAssurance in a report on Monday, April 15th. Finally, Truist Financial dropped their price objective on shares of ProAssurance from $15.00 to $14.00 and set a “hold” rating on the stock in a research note on Thursday, February 29th. Two investment analysts have rated the stock with a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat, ProAssurance has an average rating of “Moderate Buy” and a consensus price target of $17.00.

Institutional Investors Weigh In On ProAssurance

Several hedge funds and other institutional investors have recently bought and sold shares of PRA. Assenagon Asset Management S.A. acquired a new stake in shares of ProAssurance during the fourth quarter worth approximately $2,383,000. Brandywine Global Investment Management LLC bought a new stake in shares of ProAssurance in the 3rd quarter worth about $2,988,000. Swiss National Bank raised its stake in shares of ProAssurance by 2.0% in the 3rd quarter. Swiss National Bank now owns 118,700 shares of the insurance provider’s stock valued at $2,242,000 after purchasing an additional 2,300 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its position in shares of ProAssurance by 25.2% during the third quarter. Jacobs Levy Equity Management Inc. now owns 548,525 shares of the insurance provider’s stock worth $10,362,000 after purchasing an additional 110,562 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in ProAssurance by 0.3% in the third quarter. Charles Schwab Investment Management Inc. now owns 893,508 shares of the insurance provider’s stock worth $16,878,000 after purchasing an additional 2,971 shares in the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

ProAssurance Stock Performance

The company has a debt-to-equity ratio of 0.38, a current ratio of 0.27 and a quick ratio of 0.27. The company has a fifty day moving average of $12.89 and a two-hundred day moving average of $13.51. The stock has a market capitalization of $773.20 million, a P/E ratio of -20.50 and a beta of 0.21.

About ProAssurance

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation Insurance, and Segregated Portfolio Cell Reinsurance segments. It offers professional liability insurance to healthcare providers and institutions, and attorneys and their firms; medical technology liability insurance to medical technology and life sciences companies; and custom alternative risk solutions, including assumed reinsurance, loss portfolio transfers, and captive cell programs for healthcare professional liability insureds.