RenaissanceRe Holdings Ltd. (RNR) Rating Increased to Hold at Zacks Investment Research
According to Zacks, “RenaissanceRe has been witnessing a pressure on pricing due to the difficult reinsurance market over past few quarters that has again kept on affecting top-line growth. The company's weak investment portfolio and a decline in managed catastrophe premiums raise caution. However, its strength lies in its inorganic growth initiatives and capital deployments. Moreover, shift to casualty and specialty insurance from property catastrophe insurance is likely to drive long-term growth. A modest financial position has paved the way for capital deployment activities. Based on this, the company’s board recently increased share repurchase by $500 million. Restructuring, strategic divestitures and strong ratings are also positives. For the third quarter the Zacks Consensus earning estimate stands at $1.94 per share which translates into year over year decline of 24.8%.”
RNR has been the subject of a number of other research reports. Keefe, Bruyette & Woods lowered shares of RenaissanceRe Holdings from an outperform rating to a market perform rating in a research report on Monday, July 11th. Citigroup Inc. reaffirmed a neutral rating on shares of RenaissanceRe Holdings in a research report on Tuesday, June 21st. One investment analyst has rated the stock with a sell rating and six have given a hold rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $119.14.
RenaissanceRe Holdings (NYSE:RNR) opened at 123.05 on Friday. The company has a 50-day moving average price of $119.84 and a 200-day moving average price of $116.65. RenaissanceRe Holdings has a 1-year low of $107.27 and a 1-year high of $123.16. The firm has a market capitalization of $5.07 billion, a P/E ratio of 12.48 and a beta of 0.49.
RenaissanceRe Holdings (NYSE:RNR) last announced its quarterly earnings data on Tuesday, July 26th. The company reported $1.55 EPS for the quarter, missing the Zacks’ consensus estimate of $1.92 by $0.37. The company had revenue of $483.30 million for the quarter, compared to analyst estimates of $410.83 million. RenaissanceRe Holdings had a net margin of 27.26% and a return on equity of 9.41%. The firm’s quarterly revenue was up 21.6% on a year-over-year basis. During the same period in the prior year, the company posted $2.18 EPS. On average, equities research analysts predict that RenaissanceRe Holdings will post $7.44 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Thursday, September 15th were paid a dividend of $0.31 per share. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $1.24 annualized dividend and a yield of 1.01%. RenaissanceRe Holdings’s dividend payout ratio is 12.50%.
In other RenaissanceRe Holdings news, CEO Kevin Odonnell sold 3,000 shares of the company’s stock in a transaction dated Tuesday, August 2nd. The shares were sold at an average price of $116.97, for a total transaction of $350,910.00. Following the sale, the chief executive officer now directly owns 273,944 shares of the company’s stock, valued at $32,043,229.68. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Rider Fonner Todd sold 1,500 shares of the company’s stock in a transaction dated Monday, August 1st. The stock was sold at an average price of $117.20, for a total transaction of $175,800.00. Following the sale, the senior vice president now directly owns 68,253 shares in the company, valued at $7,999,251.60. The disclosure for this sale can be found here. Company insiders own 2.40% of the company’s stock.
A number of hedge funds have recently modified their holdings of the company. Walleye Trading LLC purchased a new stake in shares of RenaissanceRe Holdings during the second quarter valued at $125,000. Seven Eight Capital LLC bought a new position in shares of RenaissanceRe Holdings during the first quarter worth about $192,000. Chevy Chase Trust Holdings Inc. bought a new position in shares of RenaissanceRe Holdings during the second quarter worth about $200,000. BTC Capital Management Inc. raised its position in shares of RenaissanceRe Holdings by 8.8% in the second quarter. BTC Capital Management Inc. now owns 1,823 shares of the company’s stock worth $216,000 after buying an additional 148 shares during the last quarter. Finally, Gideon Capital Advisors Inc. bought a new position in shares of RenaissanceRe Holdings during the second quarter worth about $227,000. 94.78% of the stock is currently owned by hedge funds and other institutional investors.
RenaissanceRe Holdings Company Profile
RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services. The Company’s core products include property catastrophe reinsurance and specialty reinsurance risks. The Company’s segments include Catastrophe Reinsurance, Specialty Reinsurance and Lloyd’s. Catastrophe Reinsurance includes catastrophe reinsurance and certain property catastrophe joint ventures managed by the Company’s ventures unit.
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