XL Group (XL) Lifted to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of XL Group (NYSE:XL) from a sell rating to a hold rating in a research note released on Saturday morning.
According to Zacks, “XL Group’s fourth-quarter 2017 earnings missed the Zacks Consensus Estimate and also deteriorated year over year due to high level of catastrophe loss. Nonetheless, shares of XL Group have outperformed the industry, since the release of its fourth-quarter results. XL Group holds a premier position in global specialty insurance and reinsurance markets owing to the acquisition of Catlin Group in 2015. It remains focused on its insurance and reinsurance business lines that provide the best return on capital over the pricing cycle, while tapping opportunities in the emerging economies. XL Group also engages in shareholder-friendly moves. However, exposure to catastrophes makes underwriting results volatile. It estimates pretax cat loss of $315 million in the fourth quarter. Negative pricing across business lines and increasing expenses remain headwinds.”
Several other brokerages also recently weighed in on XL. Deutsche Bank downgraded XL Group from a hold rating to a sell rating and dropped their target price for the stock from $42.00 to $37.00 in a research note on Friday, October 13th. Barclays dropped their target price on XL Group from $51.00 to $47.00 and set an overweight rating on the stock in a research note on Monday, October 16th. TheStreet downgraded XL Group from a b rating to a c rating in a research note on Tuesday, October 24th. UBS Group boosted their target price on XL Group from $44.00 to $45.00 and gave the stock a buy rating in a research note on Monday, October 30th. Finally, B. Riley restated a neutral rating on shares of XL Group in a research note on Monday, November 6th. One research analyst has rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $44.67.
XL Group (NYSE:XL) last announced its quarterly earnings results on Thursday, February 1st. The insurance provider reported $0.45 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.38 by $0.07. XL Group had a negative return on equity of 4.25% and a negative net margin of 4.95%. The business had revenue of $2.91 billion for the quarter, compared to the consensus estimate of $2.73 billion. During the same period last year, the business posted $0.47 EPS. sell-side analysts anticipate that XL Group will post 3.68 earnings per share for the current fiscal year.
In other XL Group news, CFO Stephen Robb sold 20,000 shares of XL Group stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $40.00, for a total transaction of $800,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Kcb Vereker sold 2,697 shares of XL Group stock in a transaction dated Friday, December 8th. The stock was sold at an average price of $36.59, for a total value of $98,683.23. Following the sale, the director now directly owns 66,455 shares of the company’s stock, valued at approximately $2,431,588.45. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 112,697 shares of company stock worth $4,493,383. 3.02% of the stock is owned by company insiders.
A number of institutional investors and hedge funds have recently modified their holdings of XL. Boston Partners lifted its position in XL Group by 112.6% during the 4th quarter. Boston Partners now owns 11,902,560 shares of the insurance provider’s stock worth $418,494,000 after acquiring an additional 6,304,849 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its position in XL Group by 31.4% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 17,072,900 shares of the insurance provider’s stock worth $673,526,000 after acquiring an additional 4,077,346 shares during the period. Janus Henderson Group PLC lifted its position in XL Group by 45.1% during the 3rd quarter. Janus Henderson Group PLC now owns 5,071,040 shares of the insurance provider’s stock worth $200,052,000 after acquiring an additional 1,577,318 shares during the period. Russell Investments Group Ltd. lifted its position in XL Group by 49.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 3,557,080 shares of the insurance provider’s stock worth $140,317,000 after acquiring an additional 1,173,380 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in XL Group by 11.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,783,932 shares of the insurance provider’s stock worth $343,540,000 after acquiring an additional 925,470 shares during the period. 98.97% of the stock is owned by institutional investors.
XL Group Company Profile
XL Group plc is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises. The Company operates through two segments: Insurance and Reinsurance. The Company’s Insurance segment is organized into four product divisions: Global Casualty (Casualty); Global Energy Property, & Construction (EPC); Global Professional (Professional), and Global Specialty (Specialty).
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