RenaissanceRe Holdings Ltd. (RNR) Lowered to Sell at Zacks Investment Research
Zacks Investment Research cut shares of RenaissanceRe Holdings Ltd. (NYSE:RNR) from a hold rating to a sell rating in a research note published on Wednesday.
According to Zacks, “Shares of RenaissanceRe have underperformed the industry year to date. The company’s exposure to pricing pressures bothers as it has been affecting top-line growth over past many quarters. The company’s weak investment portfolio also raises concern. Being a property and casualty insurer, its continuous exposure to catastrophe losses remains a major headwind. The stock has seen the Zacks Consensus Estimate for 2018 being revised downward in the last 90 days. Neverthless its top line growth remains impressive. The company has been undertaking divestitures to streamline its operations by getting rid of low-return high-risk businesses which should drive long term growth.”
RNR has been the topic of a number of other reports. BidaskClub downgraded shares of RenaissanceRe Holdings from a hold rating to a sell rating in a report on Friday, August 25th. Buckingham Research started coverage on shares of RenaissanceRe Holdings in a report on Monday, September 11th. They set a buy rating and a $165.00 target price on the stock. J P Morgan Chase & Co downgraded shares of RenaissanceRe Holdings from an overweight rating to a neutral rating and lowered their target price for the stock from $165.00 to $145.00 in a report on Friday, July 28th. UBS AG lowered their target price on shares of RenaissanceRe Holdings from $145.00 to $136.00 and set a neutral rating on the stock in a report on Tuesday, September 19th. Finally, Morgan Stanley restated an equal weight rating and set a $144.00 target price (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, eight have given a hold rating and two have assigned a buy rating to the stock. RenaissanceRe Holdings has a consensus rating of Hold and an average price target of $143.28.
RenaissanceRe Holdings (RNR) traded up 0.03% during mid-day trading on Wednesday, hitting $137.85. 496,102 shares of the company traded hands. RenaissanceRe Holdings has a one year low of $117.36 and a one year high of $152.00. The company’s 50-day moving average is $136.94 and its 200-day moving average is $140.93. The stock has a market capitalization of $5.55 billion, a price-to-earnings ratio of 11.77 and a beta of 0.65.
RenaissanceRe Holdings (NYSE:RNR) last issued its earnings results on Tuesday, July 25th. The insurance provider reported $2.79 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.33 by $0.46. The business 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 revenue for the quarter was up 6.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.55 earnings per share. Analysts predict that RenaissanceRe Holdings will post $2.52 EPS for the current year.
RenaissanceRe Holdings declared that its board has approved a share buyback program on Wednesday, August 2nd that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the insurance provider to purchase up to 8.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 29th. Shareholders of record on Friday, September 15th were given a dividend of $0.32 per share. The ex-dividend date was Thursday, September 14th. This represents a $1.28 dividend on an annualized basis and a yield of 0.93%. RenaissanceRe Holdings’s dividend payout ratio (DPR) is 10.90%.
In other RenaissanceRe Holdings news, SVP Ross Curtis sold 5,300 shares of RenaissanceRe Holdings stock in a transaction on 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Kevin Odonnell sold 38,344 shares of RenaissanceRe Holdings stock in a transaction on Wednesday, August 2nd. The stock was sold at an average price of $147.93, for a total transaction of $5,672,227.92. Following the transaction, the chief executive officer now directly owns 208,150 shares of the company’s stock, valued at $30,791,629.50. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 48,644 shares of company stock valued at $7,132,297. Company insiders own 1.80% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. boosted its position in RenaissanceRe Holdings by 1.0% during the first quarter. PNC Financial Services Group Inc. now owns 2,019 shares of the insurance provider’s stock worth $294,000 after purchasing an additional 19 shares during the period. Stifel Financial Corp boosted its position in RenaissanceRe Holdings by 1.0% during the first quarter. Stifel Financial Corp now owns 2,255 shares of the insurance provider’s stock worth $324,000 after purchasing an additional 22 shares during the period. Moon Capital Management LLC boosted its position in RenaissanceRe Holdings by 0.3% during the second quarter. Moon Capital Management LLC now owns 17,786 shares of the insurance provider’s stock worth $2,473,000 after purchasing an additional 55 shares during the period. M&T Bank Corp boosted its position in RenaissanceRe Holdings by 0.9% during the second quarter. M&T Bank Corp now owns 8,215 shares of the insurance provider’s stock worth $1,142,000 after purchasing an additional 74 shares during the period. Finally, Oppenheimer Asset Management Inc. boosted its position in RenaissanceRe Holdings by 2.7% during the second quarter. Oppenheimer Asset Management Inc. now owns 2,807 shares of the insurance provider’s stock worth $390,000 after purchasing an additional 75 shares during the period. 91.70% of the stock is owned by hedge funds and other institutional investors.
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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