RenaissanceRe Holdings Ltd. (NYSE:RNR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Friday.
According to Zacks, “RenaissanceRe has been witnessing a pressure on pricing due to the difficult reinsurance market over past few quarters that has again kept on affecting top-line growth. The company's weak investment portfolio and a decline in managed catastrophe premiums raise caution. However, its strength lies in its inorganic growth initiatives and capital deployments. Moreover, shift to casualty and specialty insurance from property catastrophe insurance is likely to drive long-term growth. A modest financial position has paved the way for capital deployment activities. Based on this, the company’s board recently increased share repurchase by $500 million. Restructuring, strategic divestitures and strong ratings are also positives. For the third quarter the Zacks Consensus earning estimate stands at $1.94 per share which translates into year over year decline of 24.8%.”
A number of other equities research analysts also recently weighed in on the stock. Keefe, Bruyette & Woods lifted their price target on shares of RenaissanceRe Holdings from $130.00 to $134.00 and gave the stock a “market perform” rating in a research note on Thursday, July 28th. Citigroup Inc. reissued a “neutral” rating on shares of RenaissanceRe Holdings in a report on Tuesday, June 21st. One analyst has rated the stock with a sell rating and six have assigned a hold rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $119.14.
Shares of RenaissanceRe Holdings (NYSE:RNR) traded up 1.99% during trading on Friday, reaching $120.41. 224,764 shares of the company were exchanged. The stock has a 50-day moving average of $119.32 and a 200 day moving average of $116.51. RenaissanceRe Holdings has a 52-week low of $107.27 and a 52-week high of $122.97. The stock has a market capitalization of $4.96 billion, a P/E ratio of 12.21 and a beta of 0.49.
RenaissanceRe Holdings (NYSE:RNR) last posted its quarterly earnings results on Tuesday, July 26th. The company reported $1.55 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.92 by $0.37. RenaissanceRe Holdings had a return on equity of 9.41% and a net margin of 27.26%. The business had revenue of $483.30 million for the quarter, compared to analyst estimates of $410.83 million. During the same quarter in the prior year, the firm earned $2.18 EPS. The firm’s quarterly revenue was up 21.6% on a year-over-year basis. On average, equities analysts anticipate that RenaissanceRe Holdings will post $7.44 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 15th were paid a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 1.05%. The ex-dividend date was Tuesday, September 13th. RenaissanceRe Holdings’s dividend payout ratio (DPR) is presently 12.50%.
In related news, COO Jeffrey D. Kelly sold 12,000 shares of the firm’s stock in a transaction dated Monday, August 1st. The stock was sold at an average price of $117.31, for a total value of $1,407,720.00. Following the sale, the chief operating officer now directly owns 70,728 shares of the company’s stock, valued at $8,297,101.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Kevin Odonnell sold 3,000 shares of the firm’s stock in a transaction dated Tuesday, August 2nd. The shares were sold at an average price of $116.97, for a total value of $350,910.00. Following the completion of the sale, the chief executive officer now directly owns 273,944 shares in the company, valued at $32,043,229.68. The disclosure for this sale can be found here. 2.40% of the stock is owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Walleye Trading LLC purchased a new position in RenaissanceRe Holdings during the second quarter valued at approximately $125,000. Seven Eight Capital LLC purchased a new position in RenaissanceRe Holdings during the first quarter valued at approximately $192,000. Chevy Chase Trust Holdings Inc. purchased a new position in RenaissanceRe Holdings during the second quarter valued at approximately $200,000. BTC Capital Management Inc. increased its position in RenaissanceRe Holdings by 8.8% in the second quarter. BTC Capital Management Inc. now owns 1,823 shares of the company’s stock valued at $216,000 after buying an additional 148 shares in the last quarter. Finally, Gideon Capital Advisors Inc. purchased a new position in RenaissanceRe Holdings during the second quarter valued at approximately $227,000. 94.78% of the stock is currently owned by institutional investors and hedge funds.
RenaissanceRe Holdings Company Profile
RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services. The Company’s core products include property catastrophe reinsurance and specialty reinsurance risks. The Company’s segments include Catastrophe Reinsurance, Specialty Reinsurance and Lloyd’s. Catastrophe Reinsurance includes catastrophe reinsurance and certain property catastrophe joint ventures managed by the Company’s ventures unit.