RenaissanceRe Holdings Ltd. (RNR) Downgraded by Zacks Investment Research to Sell
Zacks Investment Research downgraded shares of RenaissanceRe Holdings Ltd. (NYSE:RNR) from a hold rating to a sell rating in a research note released on Wednesday.
According to Zacks, “RenaissanceRe’s third-quarter 2017 adjusted loss was wider than the Zacks Consensus Estimate and compares unfavorably with earnings reported in the last-year quarter. The deterioration was led by huge catastrophic losses in the quarter. Shares of the company have underperformed the industry year to date. Its weak investment portfolio has been a concern. Its continuous exposure to catastrophe losses also remains 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. However, the company’s consistent premium growth bolsters revenue base. In addition, its robust inorganic growth impresses.”
A number of other analysts have also commented on the company. Wells Fargo & Company set a $140.00 price objective on RenaissanceRe Holdings and gave the stock a hold rating in a research report on Tuesday. Keefe, Bruyette & Woods restated a hold rating and set a $136.00 target price on shares of RenaissanceRe Holdings in a research report on Monday, October 16th. ValuEngine lowered RenaissanceRe Holdings from a buy rating to a hold rating in a research report on Friday, October 6th. Citigroup Inc. decreased their target price on RenaissanceRe Holdings from $148.00 to $146.00 and set a neutral rating for the company in a research report on Monday, October 2nd. Finally, UBS AG decreased their target price on RenaissanceRe Holdings from $136.00 to $135.00 and set a neutral rating for the company in a research report on Monday, October 2nd. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have assigned a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $143.48.
RenaissanceRe Holdings (NYSE:RNR) last announced its quarterly earnings data on Tuesday, October 31st. The insurance provider reported ($13.81) EPS for the quarter, missing the Zacks’ consensus estimate of ($12.25) by ($1.56). The firm had revenue of $483.22 million during the quarter, compared to analyst estimates of $300.46 million. RenaissanceRe Holdings had a negative return on equity of 5.66% and a negative net margin of 7.60%. RenaissanceRe Holdings’s revenue for the quarter was up 70.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.09 earnings per share.
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RenaissanceRe Holdings declared that its board has authorized a stock buyback plan on Wednesday, August 2nd that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the insurance provider to reacquire up to 8.4% 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 news, CEO Kevin Odonnell sold 5,000 shares of RenaissanceRe Holdings stock in a transaction dated Wednesday, November 1st. The stock was sold at an average price of $135.58, for a total transaction of $677,900.00. Following the transaction, the chief executive officer now owns 193,447 shares in the company, valued at approximately $26,227,544.26. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 1.80% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Prudential Financial Inc. lifted its stake in RenaissanceRe Holdings by 2.2% in the 3rd quarter. Prudential Financial Inc. now owns 28,913 shares of the insurance provider’s stock valued at $3,907,000 after acquiring an additional 625 shares in the last quarter. State of Tennessee Treasury Department lifted its stake in RenaissanceRe Holdings by 400.0% in the 3rd quarter. State of Tennessee Treasury Department now owns 75,000 shares of the insurance provider’s stock valued at $10,136,000 after acquiring an additional 60,000 shares in the last quarter. Monarch Partners Asset Management LLC bought a new stake in RenaissanceRe Holdings in the 3rd quarter valued at approximately $1,630,000. State of Wisconsin Investment Board lifted its stake in RenaissanceRe Holdings by 26.2% in the 3rd quarter. State of Wisconsin Investment Board now owns 44,331 shares of the insurance provider’s stock valued at $5,991,000 after acquiring an additional 9,190 shares in the last quarter. Finally, Stevens Capital Management LP lifted its stake in RenaissanceRe Holdings by 228.6% in the 3rd quarter. Stevens Capital Management LP now owns 10,565 shares of the insurance provider’s stock valued at $1,428,000 after acquiring an additional 7,350 shares in the last quarter. Hedge funds and other institutional investors own 92.06% of the company’s stock.
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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