UBS Group AG, one of the largest financial services providers in the world has just made an impressive move by boosting its stake in American Equity Investment Life Holding Co., adding 168.1% more shares to its portfolio. In a recent filing with the Securities and Exchange Commission (SEC), UBS reported that it currently owns a total of 47,651 shares in American Equity Investment Life Holding worth an estimated $2,174,000.
American Equity Investment Life is a leading provider of fixed index and fixed rate annuity products, boasting expertise in commercial mortgage loans, agricultural mortgage loans, and residential mortgage loans. Founded by David J. Noble on December 15th,1995 and headquartered in West Des Moines, IA., American Equity Investment Life has been recognized for its exceptional performance over the years. This is evident as its stock has achieved impressive growth over the years with its current market cap standing at $3.17 billion along with having a PE ratio of 8.46 and beta of 0.87.
This announcement comes at a pivotal time when many investors are skeptical about investing their funds due to the ongoing economic uncertainty caused by COVID-19. With US retail sales dropping by 16.4% followed by high levels of unemployment across most sectors during April’s lockdowns which paired back consumer demand; it’s no surprise that many investors feel nervous.
Nevertheless, UBS Group AG seems confident that this acquisition will be beneficial for their portfolio despite concerns from some analysts who believe that the stock may have reached its peak already after climbing to new highs of $48.37 earlier this year compared to last year’s weak low of $28.05.
Indeed now could be an ideal time for UBS Group AG given that American Equity Investment Life has posted favorable Q1 earnings reports despite macroeconomic challenges such as decreased interest rates brought about by COVID-19 pandemic-induced bear market conditions.
The fund managers at UBS Group AG’s decision to significantly increase their stake is both bold and timely, suggesting yet again that the financial conglomerate has a keen sense for investment opportunities. This acquisition will undoubtedly provide a boost of confidence to many investors, thus setting up American Equity Investment Life for a promising future.
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Institutional Investors Boost American Equity Investment Life Holding Co, Insider Purchase and Positive Financials Strengthen Prospects
American Equity Investment Life Holding Co has recently seen an increase in institutional investment activity, with several investors adding or reducing their stakes in the company. IFP Advisors Inc, Gladius Capital Management LP, Lazard Asset Management LLC, Covestor Ltd and Quantbot Technologies LP all hold positions in American Equity Investment Life, with institutional ownership totalling 94.03% of the company’s stock.
In addition to the boost from institutional investors, American Equity Investment Life also experienced an insider purchase by Director Alan David Matula. Matula bought 7,100 shares at an average price of $35.50 per share on March 22nd; following the acquisition he now holds 39,942 shares valued at $1,417,941. The purchase was disclosed in a document filed with the Securities and Exchange Commission.
American Equity Investment Life is engaged in developing and selling fixed index and fixed rate annuity products that focus on commercial mortgage loans, agricultural mortgage loans and residential mortgage loans. The company reported earnings of $1.47 per share for Q1 2017, beating analysts’ consensus estimates of $1.15 by $0.32.
Recent comments from analysts have been mixed; Morgan Stanely cut its price target on shares of American Equity Investment Life while Raymond James dropped its target price but set a “strong-buy” rating on the stock. StockNews.com initiated coverage on shares of American Equity Investment Life and issued a “hold” rating.
Despite mixed analyst opinions and approaching challenges from shifting regulatory environments coupled with rising interest rates that can affect financial service providers like this one negatively or positively , according to market trends American Equity Investment Life seems to remain promising due to increase investment activities from heavyweights as well as positive movement in organizational revenue within recent times; that a thing or two more than outweighs possible impending hurdles that may seem challenging.This could be a good sign that American Equity Investment New Life is on the path of actualizing it mission as it remains a market leader with a wide range of clientele.