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%.”
A number of other research analysts also recently commented on RNR. Citigroup Inc. reissued a neutral rating on shares of RenaissanceRe Holdings in a research report on Tuesday, June 21st. Keefe, Bruyette & Woods downgraded shares of RenaissanceRe Holdings from an outperform rating to a market perform rating in a research report on Monday, July 11th. One research analyst has rated the stock with a sell rating and six have issued a hold rating to the stock. The company presently has an average rating of Hold and a consensus price target of $119.14.
RenaissanceRe Holdings (NYSE:RNR) traded up 0.40% during mid-day trading on Friday, reaching $121.42. 38,402 shares of the company were exchanged. The stock has a market capitalization of $5.00 billion, a price-to-earnings ratio of 12.32 and a beta of 0.49. RenaissanceRe Holdings has a 12-month low of $107.27 and a 12-month high of $122.97. The company’s 50 day moving average price is $119.42 and its 200-day moving average price is $116.54.
RenaissanceRe Holdings (NYSE:RNR) last announced its quarterly earnings data on Tuesday, July 26th. The company reported $1.55 EPS for the quarter, missing analysts’ consensus estimates of $1.92 by $0.37. RenaissanceRe Holdings had a net margin of 27.26% and a return on equity of 9.41%. The firm earned $483.30 million during the quarter, compared to the consensus estimate of $410.83 million. During the same period last year, the business earned $2.18 EPS. The business’s revenue was up 21.6% on a year-over-year basis. On average, equities research analysts forecast that RenaissanceRe Holdings will post $7.44 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Thursday, September 15th were paid a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 1.03%. The ex-dividend date of this dividend was Tuesday, September 13th. RenaissanceRe Holdings’s dividend payout ratio (DPR) is 12.50%.
In other RenaissanceRe Holdings news, CEO Kevin Odonnell sold 3,000 shares of RenaissanceRe Holdings stock in a transaction dated Tuesday, August 2nd. The shares were sold at an average price of $116.97, for a total value of $350,910.00. Following the completion of the sale, the chief executive officer now owns 273,944 shares in the company, valued at approximately $32,043,229.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Rider Fonner Todd sold 1,500 shares of RenaissanceRe Holdings 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 completion of the sale, the senior vice president now owns 68,253 shares of the company’s stock, valued at approximately $7,999,251.60. The disclosure for this sale can be found here. 2.40% of the stock is currently owned by company insiders.
A number of hedge funds have recently modified their holdings of the company. Walleye Trading LLC acquired a new stake in shares of RenaissanceRe Holdings during the second quarter valued at $125,000. Seven Eight Capital LLC acquired a new stake in shares of RenaissanceRe Holdings during the first quarter valued at $192,000. Chevy Chase Trust Holdings Inc. acquired a new stake in shares of RenaissanceRe Holdings during the second quarter valued at $200,000. BTC Capital Management Inc. boosted its stake 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 valued at $216,000 after buying an additional 148 shares during the period. Finally, Gideon Capital Advisors Inc. acquired a new stake in shares of RenaissanceRe Holdings during the second quarter valued at $227,000. Institutional investors and hedge funds own 94.78% of the company’s stock.
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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