On June 12, 2023, it was reported that GSA Capital Partners LLP decreased its stake in Reinsurance Group of America, Incorporated (NYSE:RGA) by over 30% last quarter. The firm now owns $261,000 worth of shares of the insurance provider’s stock after selling off 795 shares. This move comes as several research firms have recently provided their views on RGA’s performance.
Royal Bank of Canada downgraded RGA’s target price from $170.00 to $164.00 and rated the company as “outperform” in April this year. Meanwhile, Credit Suisse Group hiked the target price from $144.00 to $152.00 for the same period. Raymond James began coverage on RGA this month with a “strong-buy” rating and a target price set at $199.00 per share; while Wells Fargo & Company started coverage in late April with an “overweight” rating and a target price of $163.00 per share for RGA.
Currently, three equities research analysts rank the stock as a hold, six as a buy and one has designated it a strong-buy respectively- giving an average rating of “Moderate Buy”. According to Bloomberg.com, analysts firmly believe that Reinsurance Group of America presently holds much promise with respect to its expected returns.
Yesterday NYSE:RGA traded up by $0.60 during midday trading on Monday and reached $144.89; the company also registered a total volume of 15,736 shares traded compared to its current daily volume average standing at around 413,842 shares.
As for Reinsurance Group of America’s financial performance indicators: it has shown resilience despite market volatility amidst COVID-19 pandemic-induced uncertainties since last year and sustained profitability through Q1 2023 in terms of premium growth in its traditional US markets and incremental growth globally across all segment lines including its financial solutions arm. RGA’s current ratio and debt-to-equity ratio in Q1 2023 are at a healthy level of 0.14 and 0.58 respectively, showing that the company has the capacity to cover its short-term liabilities.
Despite GSA Capital Partners LLP reducing their holdings in shares of Reinsurance Group of America, analysts still hold favorable views on RGA’s long-term prospects. With ongoing restructuring efforts to expand the range of financial solutions offered by RGA’s Reinsurtech(TM) platform, this provider might become a potentially profitable venture for investors in time to come.
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Reinsurance Group of America (RGA) Attracts Large Investor Interest and Continues to Outperform
Reinsurance Group of America (RGA) has been making headlines recently due to a number of large investors making changes to their positions in the company. The most recent announcement, on June 12th, revealed that U.S. Capital Wealth Advisors LLC had purchased a new position in RGA shares valued at about $27,000. International Assets Investment Management LLC also bought a new stake in the company valued at $35,000.
IFP Advisors Inc raised its position in RGA by an impressive 245.6% during the third quarter, and Signaturefd LLC increased its stake in the company by 53.5% during the same period. Finally, Parkside Financial Bank & Trust increased its stake in RGA by 47.8% during Q1 this year. According to reports, institutional investors own an impressive 96.46% of the stock.
While these transactions are making headlines, RGA CFO Todd C. Larson also sold over 1,000 shares of company stock on May 16th with a total value of $151,641.28. Following this latest transaction, Larson now owns over $6 million worth of RGA shares.
Fortunately for investors who may be looking to add or hold onto shares in this insurance provider giant, several research firms have recently weighed in on RGA providing an “outperform” rating and target prices ranging from $152 – $199 per share for strong upside potential.
RGA last posted its quarterly earnings results on May 5th and beat analysts’ consensus estimates posting an EPS of $5.16 compared to the expected $3.37 with revenue totaling $4.25 billion during that period.
To top it off, Reinsurance Group of America paid out a quarterly dividend on May 30th issuing shareholders with a payout ratio (DPR) currently sitting at an impressive 23%. With so much positive news surrounding RGA recently this could be an exciting time for investors to take advantage of an incredible opportunity.