According to Bloomberg Ratings, Reinsurance Group of America, Incorporated (NYSE:RGA) has received an average recommendation of “Moderate Buy” from ten research firms that cover the company. Out of these analysts, four have given a hold rating, five have given a buy rating, and one has given a strong buy rating. The average 12-month target price among brokerages that updated their coverage on the stock in the last year is $162.55.
On Wednesday, shares of RGA opened at $145.91. The company has a 50-day simple moving average of $141.34 and a 200-day simple moving average of $140.27. It has a quick ratio and current ratio of 0.14, as well as a debt-to-equity ratio of 0.61. With a market capitalization of $9.66 billion, RGA has a PE ratio of 10.44 and a beta of 0.88. Over the past year, its stock price has ranged between $120.29 and $153.35.
Institutional investors have shown recent activity in buying and selling shares of RGA stock. Moneta Group Investment Advisors LLC increased its position in the company by an impressive 129,207.8% during the fourth quarter and now owns over 12 million shares valued at $1.72 billion after additional purchases in the last quarter.
Furthermore, Norges Bank acquired a new position in RGA during the same time frame with an estimated value approaching $97 million.The investment bank Morgan Stanley also demonstrated interest by increasing its position by 121% during the fourth quarter so that it now holds over 930 thousand shares valued at around $132 million.
Additionally, Alliancebernstein L.P., another institutional investor climbed aboard by raising their position by approximately four times during the third quarter to hold over half-million shares worth nearly $73 million.Finally, Virginia Retirement Systems ET AL also joined the list of institutional investors by acquiring a new position during the second quarter worth approximately $55 million.
In terms of recent financial performance, Reinsurance Group of America reported its quarterly earnings data on August 4th. The company exceeded analysts’ consensus estimates with an EPS (earnings per share) of $4.40 for the quarter, surpassing expectations by $0.28. Reaching $4.16 billion in revenue for the same period, the firm slightly fell short of analysts’ expectations by only missing out on an estimated $0.14 billion.
When analyzing the net margin and return on equity, Reinsurance Group of America demonstrated a net margin of 5.61% and a return on equity of 20.35%. Compared to the preceding year, its revenue increased by 6.5% during this particular quarter. However, in that same period last year, the company earned higher EPS at $5.78.
Equities research analysts project that Reinsurance Group of America will post substantial earnings per share amounting to approximately 18.13 for the current fiscal year.
Overall, despite having received mostly positive ratings from analysts and showing an upward trajectory in performance indicators like revenue growth and earnings per share, investors should carefully consider individual risk tolerance and investment goals before making any decisions regarding RGA stock.
Source: Bloomberg Ratings
Date: September 27, 2023
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Analyst Ratings, Dividends, and the Potential of Reinsurance Group of America in Today’s Market
In recent discussions surrounding the stock of Reinsurance Group of America, numerous equities research analysts have offered their insights. The esteemed Jefferies Financial Group, for instance, has notably lowered their price objective on shares of the company from $160.00 to $159.00, accompanied by a “hold” rating for the stock in a research note published on Thursday, September 14th.
Another renowned financial institution that has weighed in on Reinsurance Group of America is Raymond James. In an extensive research note released on Wednesday, June 7th, they expressed their belief in the stock’s potential through a “strong-buy” rating and set an impressive price objective of $199.00.
Furthermore, Morgan Stanley – a prestigious name within the finance industry – made an interesting move by increasing their price objective on shares of Reinsurance Group of America from $160.00 to $162.00. Simultaneously, they assigned an “equal weight” rating to the stock in a research note dated Friday, August 18th.
Citigroup also weighed in on Reinsurance Group of America with some crucial observations. While lowering their price target from $170.00 to $162.00, they furnished the company with a favorable “buy” rating in a comprehensive report published on Wednesday, August 9th.
Lastly, StockNews.com entered into coverage of Reinsurance Group of America on Thursday, August 17th and shared an optimistic outlook by assigning a “buy” rating.
Moving beyond analyst ratings and recommendations — which are always subjected to varied interpretations — it is worth noting that Reinsurance Group of America recently released news regarding its quarterly dividend payment schedule. On Tuesday, August 29th, this esteemed firm officially paid out dividends to investors who were recorded as shareholders as per Tuesday, August 15th acknowledgements.
Notably swift and tactful in its actions pertaining to dividend payments during these uncertain times within the global economy, Reinsurance Group of America issued a $0.85 dividend to its investors. This figure represents an annualized basis dividend of $3.40 and yields at 2.33%. Comparatively speaking, this marks an increase from the previous quarterly dividend paid by Reinsurance Group of America, which stood at $0.80.
Finally, for those keen on understanding the specific timeline involved in receiving dividends, it is important to note that the ex-dividend date for Reinsurance Group of America was Monday, August 14th.
Considering the aforementioned details surrounding changes in analyst ratings and estimated stock prices, as well as the positive developments within its dividend structure, Reinsurance Group of America appears poised to maintain its solid position within the market. Investors seeking stability and returns may find themselves intrigued by what this company has to offer amidst today’s economic complexities.
