The world of investments is a vast and ever-changing landscape, with various opportunities opening and closing almost every day. One of the many prominent names in this field is Reinsurance Group of America, Incorporated (NYSE:RGA), which offers a diverse range of life and health reinsurance products to its clients. Recently, the company became the subject of interest as Balentine LLC purchased a new stake in it during the fourth quarter.
According to the most recent Form 13F filing with the SEC, Balentine LLC obtained 1,501 shares in Reinsurance Group of America, Incorporated that are valued at approximately $213,000. While this may not seem like a significant investment compared to other industry giants, it still shows that Balentine LLC sees potential in RGA despite market uncertainties caused by the ongoing COVID-19 pandemic.
The last announcement made by Reinsurance Group of America’s earnings data was on February 3rd. The company reported earnings-per-share (EPS) of $2.99 for the quarter – slightly lower than analysts’ expected consensus estimates of $3.51 for that same period. However, it’s worth noting that Reinsurance Group of America had revenue of $4.38 billion during Q4 2020 – more than what analysts expected ($4.33 billion).
Reinsurance Group of America’s success lies not only in its traditional and non-traditional life and health reinsurance products but also in its diversified geographical reach across different parts of the world. The company operates through several segments – including U.S. and Latin America, Canada, Europe, Middle East, Africa, Asia Pacific, and Corporate and Other – providing it with an extensive global footprint.
As we move forward into a post-pandemic world where businesses must adapt quickly to meet new challenges continually while balancing risks against potential rewards- investors will continue to monitor companies like Reinsurance Group of America with keen interest to seek out diverse investments that provide potential long-term growth while also protecting their assets. It’s clear that Balentine LLC sees RGA as a viable company to invest in, and it will be fascinating to see if other investors follow suit in the coming months.
Institutional Investors Boost Holdings in Reinsurance Group of America Inc. as Company Shows Resilience amidst Covid-19 Turmoil
Reinsurance Group of America Inc. (RGA) is a holding company that provides traditional and non-traditional life and health reinsurance products, operating in the U.S., Latin America, Canada, Europe, Middle East, Africa, Asia Pacific as well as corporate and other sectors. As per recent filings to the SEC, several institutional investors have tweaked their holdings of the insurance provider’s equity. Summit Global Investments acquired a stake worth $289k whilst Vaughan Nelson Investment Management raised their holdings by 1.9%, now owning shares worth $25.57 million after purchasing an additional 3,348 shares in Q4 2020. Oliver Luxxe Asset LLC also boosted their ownership stakes by acquiring a further 182 shares for $540k during the same period while TKG Advisors purchased a new position for $413k while International Assets Investment did so for $35K or equivalent.
Statistically speaking, approximately 96.46% of RGA’s stock is owned by institutional investors and hedge funds demonstrating solid interest from key market participants endorsing faith in what they regard as an undeniably attractive investment opportunity; affirming RGA’s proven resilience amid unprecedented global risks.
Further evidence of RGA’s premium value can be deciphered from its market cap of over $9 billion with trading available on NYSE under the ticker symbol ‘RGA’. On Tuesday last week when this article was prepared/released, NYSE: RGA opened at $139.33 with analyst estimates seeing further gains ahead given healthy beta levels at .91 combined with a P/E ratio of just around 15x suggesting that future earnings prospects remain positive despite industry turbulence amidst Covid-19 disruption.
As per reports released by research houses such as JPMorgan Chase & Co., Evercore ISI and Royal Bank of Canada within the last year alone, Reinsurance Group of America has been first rated “in-line”, then upgraded to “outperform” status, while its share price objective was raised from $148.00 to $167.00. The stock has also been given a buy rating by Citigroup, with a consensus analyst rating of “Moderate Buy” and an average target price of $154.78 according to data from Bloomberg.com.
Lastly in 2021 thus far, RGA awarded shareholders with a quarterly dividend paid out on Tuesday, February 28th; stockholders of record on Tuesday were given a $0.80 per share dividend equating to an annualized payout of $3.20 alongside an estimated dividend yield of around 2.30%. This kind of positive cash deployment policy reinforces investor confidence in RGA’s long-term promise which is underpinned by the firm’s historically strong fundamentals which continue to attract institutional investors as they maneuver through these challenging times across global markets influenced by Covid-19-led recessionary impacts.
In conclusion therefore, RGA’s robust financials stemming from multiple geographically diversified operations combined with dividends representing reliable payouts particularly against the current macroeconomic background makes it an attractive long-term investment contender for discerning market players who embrace effective risk management frameworks and are able to ride tough market conditions when required whilst waiting patiently for favorable trends in the future.
