XL Group Ltd. (XL) Shares Gap Down After Earnings Miss

Shares of XL Group Ltd. (NYSE:XL) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $43.17, but opened at $42.32. XL Group shares last traded at $41.49, with a volume of 3,178,675 shares trading hands.

The insurance provider reported ($4.00) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($3.91) by ($0.09). XL Group had a net margin of 7.53% and a return on equity of 4.88%. The company had revenue of $2.33 billion for the quarter, compared to analysts’ expectations of $2.11 billion. The company’s quarterly revenue was up 9.0% compared to the same quarter last year. During the same period last year, the business earned $0.44 earnings per share.

The company also recently announced a quarterly dividend, which was paid on Monday, October 2nd. Stockholders of record on Friday, September 15th were given a dividend of $0.22 per share. The ex-dividend date was Thursday, September 14th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.15%. XL Group’s dividend payout ratio is currently 28.57%.

A number of research analysts have recently commented on XL shares. BidaskClub upgraded XL Group from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, July 12th. Morgan Stanley reiterated an “overweight” rating and set a $50.00 target price (up from $46.00) on shares of XL Group in a research report on Friday, July 7th. Deutsche Bank AG downgraded XL Group from a “hold” rating to a “sell” rating and lowered their target price for the company from $42.00 to $37.00 in a research report on Friday, October 13th. Royal Bank Of Canada reiterated a “buy” rating and set a $53.00 target price on shares of XL Group in a research report on Tuesday, August 29th. Finally, Citigroup Inc increased their target price on XL Group from $43.00 to $46.00 and gave the company a “neutral” rating in a research report on Thursday, July 13th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $45.42.

In related news, Director Joseph Mauriello sold 3,043 shares of the firm’s stock in a transaction on Tuesday, August 1st. The stock was sold at an average price of $44.55, for a total value of $135,565.65. Following the completion of the sale, the director now directly owns 55,008 shares in the company, valued at $2,450,606.40. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 3.02% of the stock is owned by company insiders.

A number of hedge funds have recently added to or reduced their stakes in the business. First Business Financial Services Inc. increased its stake in XL Group by 16.0% in the third quarter. First Business Financial Services Inc. now owns 12,031 shares of the insurance provider’s stock worth $475,000 after purchasing an additional 1,657 shares during the period. Pictet Asset Management Ltd. increased its stake in XL Group by 9.3% in the third quarter. Pictet Asset Management Ltd. now owns 164,261 shares of the insurance provider’s stock worth $6,480,000 after purchasing an additional 14,000 shares during the period. Korea Investment CORP increased its stake in XL Group by 118.5% in the third quarter. Korea Investment CORP now owns 281,902 shares of the insurance provider’s stock worth $11,121,000 after purchasing an additional 152,900 shares during the period. Aperio Group LLC increased its stake in XL Group by 14.0% in the third quarter. Aperio Group LLC now owns 161,117 shares of the insurance provider’s stock worth $6,356,000 after purchasing an additional 19,727 shares during the period. Finally, First Trust Advisors LP increased its stake in XL Group by 168.0% in the third quarter. First Trust Advisors LP now owns 876,380 shares of the insurance provider’s stock worth $34,573,000 after purchasing an additional 549,356 shares during the period. Institutional investors and hedge funds own 95.40% of the company’s stock.

The firm has a 50 day moving average price of $39.95 and a 200-day moving average price of $42.31. The firm has a market cap of $10.54 billion, a price-to-earnings ratio of 13.36 and a beta of 1.00.

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About XL Group

XL Group plc is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises. The Company operates through two segments: Insurance and Reinsurance. The Company’s Insurance segment is organized into four product divisions: Global Casualty (Casualty); Global Energy Property, & Construction (EPC); Global Professional (Professional), and Global Specialty (Specialty).

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