Everest Re Group Ltd. (RE) Cut to “Hold” at Zacks Investment Research
Everest Re Group Ltd. (NYSE:RE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Everest Re’s is well positioned in the insurance and reinsurance industries. The insurer has substantially benefited from its global presence, product diversification, capital adequacy, financial flexibility and traditional risk management capabilities. Banking on favorable operational performance the company enjoys disciplined capital management strategy and strong capital balance position, enabling it to engage in shareholders friendly moves. Notably, the company divested its Heartland, the crop MGA and entered into an long-term reinsurance relationship with CGB Diversified Services. The divesture thus seems a strategic step by the company to brace its growth profile. Riding on the positives, the Zacks Consensus Estimate has been witnessing upward revision over the last 60 days. However, a competitive reinsurance market, exposure to catastrophe events infusing underwriting volatility and a low interest rate environment remain headwinds.”
A number of other equities analysts have also recently commented on the company. Barclays PLC reissued an “overweight” rating and set a $215.00 target price on shares of Everest Re Group in a report on Wednesday, July 27th. Keefe, Bruyette & Woods upped their price target on Everest Re Group from $199.00 to $204.00 and gave the company a “market perform” rating in a research report on Wednesday, July 27th. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $202.40.
Shares of Everest Re Group (NYSE:RE) traded down 1.87% during midday trading on Wednesday, hitting $186.56. The company had a trading volume of 180,946 shares. Everest Re Group has a 12 month low of $167.07 and a 12 month high of $199.98. The company has a 50-day moving average of $190.94 and a 200-day moving average of $186.48. The company has a market capitalization of $7.81 billion, a PE ratio of 10.42 and a beta of 0.63.
Everest Re Group (NYSE:RE) last released its quarterly earnings results on Monday, July 25th. The company reported $3.17 earnings per share for the quarter, topping analysts’ consensus estimates of $2.85 by $0.32. The company earned $1.43 billion during the quarter, compared to analysts’ expectations of $1.30 billion. Everest Re Group had a return on equity of 11.78% and a net margin of 13.79%. During the same quarter in the prior year, the firm posted $5.03 EPS. Analysts predict that Everest Re Group will post $16.47 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 21st. Stockholders of record on Wednesday, September 7th were paid a $1.15 dividend. This represents a $4.60 annualized dividend and a dividend yield of 2.42%. The ex-dividend date was Friday, September 2nd. Everest Re Group’s payout ratio is currently 25.66%.
In other news, Director John R. Dunne sold 200 shares of the stock in a transaction on Tuesday, September 13th. The stock was sold at an average price of $190.03, for a total value of $38,006.00. Following the sale, the director now directly owns 10,579 shares in the company, valued at $2,010,327.37. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP John P. Doucette sold 1,840 shares of the stock in a transaction on Wednesday, August 3rd. The shares were sold at an average price of $189.84, for a total value of $349,305.60. Following the completion of the sale, the vice president now owns 23,265 shares in the company, valued at $4,416,627.60. The disclosure for this sale can be found here. 1.30% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in RE. Pacad Investment Ltd. bought a new stake in shares of Everest Re Group during the first quarter valued at about $711,000. Teachers Advisors Inc. boosted its stake in shares of Everest Re Group by 0.5% in the first quarter. Teachers Advisors Inc. now owns 180,337 shares of the company’s stock valued at $35,604,000 after buying an additional 871 shares during the last quarter. BlackRock Inc. boosted its stake in shares of Everest Re Group by 3.5% in the first quarter. BlackRock Inc. now owns 104,537 shares of the company’s stock valued at $20,640,000 after buying an additional 3,557 shares during the last quarter. BlackRock Group LTD boosted its stake in shares of Everest Re Group by 1.2% in the first quarter. BlackRock Group LTD now owns 400,912 shares of the company’s stock valued at $79,152,000 after buying an additional 4,634 shares during the last quarter. Finally, BlackRock Fund Advisors boosted its stake in shares of Everest Re Group by 6.1% in the first quarter. BlackRock Fund Advisors now owns 1,829,070 shares of the company’s stock valued at $361,113,000 after buying an additional 105,881 shares during the last quarter. Institutional investors and hedge funds own 91.98% of the company’s stock.
Everest Re Group Company Profile
Everest Re Group, Ltd., through its subsidiaries, is engaged in the underwriting of reinsurance and insurance in the United States, Bermuda and international markets. The Company’s segments include U.S. Reinsurance segment, International segment, Bermuda segment, Insurance segment and Mt. Logan Re segment.
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