Reinsurance Group of America, Incorporated (NYSE:RGA) has been awarded a “Moderate Buy” rating by twelve analysts currently covering the stock, according to Bloomberg Ratings. Of these analysts, two have given a hold rating whilst seven have issued a buy rating on the company. These findings are an indication that RGA represents an attractive investment opportunity in the insurance sector.
The average 12-month target price among experts who have released reports on RGA during the last year is $156.60, suggesting that investors could see strong returns from buying shares at their current trading price.
On May 5th, RGA announced its earnings results for the quarter which ended in March. The firm had beaten expectations and reported earnings per share (EPS) of $5.16, outdoing consensus estimates by $1.79.
The insurance provider recorded revenue of $4.25 billion for Q1, beating Wall Street forecasts of $4.23 billion in sales for this period last year where they earned only 0.47 EPS with figures apparently looking better moving into Q2.
Several hedge funds have recently traded shares of the stock, including Profund Advisors and CIBC Asset Management Inc, who lifted their holdings by an additional 70-odd shares each worth approximately half-a-million US dollars since the start of this fiscal year.
Allworth Financial LP also increased their stake in RGA by over one-third during the first quarter while Legacy Advisors LLC added approximately 90 more shares bringing their total ownership to nearly five-thousand making hedge funds and other institutional investors owners of almost an entire percent more than what they already owned – indicating trust in the company’s long-term prospects.
In conclusion, Reinsurance Group of America is projected to remain a solid performer amongst insurance providers with its current financial performance being well-regarded and ranked positively by leading experts globally holding promising future prospects pleasing shareholders while elevating corporate performances enhancing competitiveness amidst the current business environment for systems and operations in place therefore making RGA, a suitable investment for prospective investors.
[bs_slider_forecast=”RGA”]
Reinsurance Group of America Sees Target Price Boosted by Expert Opinions and Positive Q1 Results, Spurring Institutional Investor Interest and Insider Confidence.
Reinsurance Group of America (RGA), a global leader in life and health reinsurance, has recently seen its target price raised by several research firms. Barclays upped their target price from $146 to $149 per share on May 9th, while Citigroup changed their rating from sell to buy and adjusted their target price from $133 to $158 on March 15th. StockNews.com gave RGA a buy rating on May 18th and Credit Suisse boosted their target price from $144 to $152 on May 25th. However, Royal Bank of Canada lowered their target price from $170 to $164 per share, but still rated the company as outperforming the market on April 20th.
On Thursday, May 25th, RGA’s stock price opened at $144.54 per share. Although it had a low of $109.06 and a high of $153.35 over the past year, its current market cap is at around $9.62 billion with a reasonable price-to-earnings ratio of 10.44 and beta of 0.91. The quick ratio is at an acceptable level of 0.14 while the debt-to-equity ratio shows that RGA is using some leverage with a position of 0.58.
Several institutional investors have also taken an interest in RGA’s stock recently due to its dividend payout and growth potential. Profund Advisors LLC added an additional 70 shares this year in the first quarter after owning only 2,850 before then while CIBC Asset Management Inc also increased their holdings by 3.3% during that same period by purchasing another extra 70 shares for their portfolio.
Allworth Financial LP expanded their position in RGA by almost one-third in Q1 this year, buying up another 76 shares worth roughly $40k for themselves whereas Resonant Capital Advisors LLC purchased 89 new shares at a cost of $614k. Legacy Advisors LLC acquired 90 more shares for their firm in the first quarter as well, indicating positive sentiment from institutional investors.
RGA also announced they will be issuing a quarterly dividend of $0.80 per share on Tuesday, May 30th to shareholders as of Tuesday, May 16th. This payment represents an annualized dividend of $3.20 and a yield of 2.21%, with the dividend payout ratio at around 23.10%.
Recent insider transactions indicate confidence in the stock’s future outlook, with CFO Todd C. Larson selling over 1,000 shares on May 16th at an average price of $148.96 per share for a total value north of $151k. William L. Hutton, EVP, sold nearly 2,000 shares on May 18th at an average price of $150.03 for almost $293k total.
Overall, RGA seems poised for growth this year based on numerous expert opinions and strong financials in Q1 that set the stage for continued success throughout the rest of 2023 and beyond if present trends continue.
