Zacks Investment Research downgraded shares of XL Group (NYSE:XL) from a hold rating to a strong sell rating in a research note issued to investors on Wednesday.
According to Zacks, “Shares of XL Group underperformed the industry quarter to date. The company also witnessed 2017 and 2018 estimates moving south in the last 30 days. Exposure to catastrophes induces volatility to underwriting results. The company estimates pre-tax catastrophe loss of $250 million from California wildfire for the fourth quarter. Negative pricing across business lines as well as increasing expenses remain headwinds. However, XL Group holds a premier position in global specialty insurance and reinsurance markets owing to the acquisition of Catlin Group in 2015. XL Group remains focused on its insurance and reinsurance business lines that provide the best return on capital over the pricing cycle, while focusing on tapping opportunities in the emerging economies. XL Group also engages in shareholder-friendly moves and estimates not less than $700 million shares in buy back in 2017.”
Several other research analysts also recently commented on XL. BidaskClub downgraded XL Group from a buy rating to a hold rating in a report on Wednesday, August 23rd. Royal Bank of Canada reaffirmed a buy rating and set a $53.00 price objective on shares of XL Group in a report on Tuesday, August 29th. ValuEngine downgraded XL Group from a buy rating to a hold rating in a report on Wednesday, September 6th. Buckingham Research began coverage on XL Group in a report on Monday, September 11th. They set a neutral rating and a $42.00 price objective on the stock. Finally, UBS reduced their price objective on XL Group from $48.00 to $46.00 and set a buy rating on the stock in a report on Tuesday, September 19th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the company. The stock has a consensus rating of Hold and an average target price of $44.92.
XL Group (NYSE:XL) opened at $36.25 on Wednesday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.35 and a current ratio of 0.35. XL Group has a 1-year low of $35.04 and a 1-year high of $47.27.
XL Group (NYSE:XL) last announced its earnings results on Tuesday, October 24th. The insurance provider reported ($4.00) EPS for the quarter, missing the consensus estimate of ($3.91) by ($0.09). The business had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.11 billion. XL Group had a negative return on equity of 4.03% and a negative net margin of 2.51%. The firm’s revenue was up 9.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.44 earnings per share. equities research analysts anticipate that XL Group will post -1.98 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, January 2nd. Shareholders of record on Friday, December 15th will be given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 2.43%. The ex-dividend date of this dividend is Thursday, December 14th. XL Group’s payout ratio is -71.54%.
In other XL Group news, Director John Kcb Vereker sold 2,697 shares of the company’s stock in a transaction on Friday, December 8th. The shares were sold at an average price of $36.59, for a total transaction of $98,683.23. Following the completion of the sale, the director now owns 66,455 shares in the company, valued at approximately $2,431,588.45. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 3.02% of the company’s stock.
Institutional investors have recently modified their holdings of the business. Meeder Asset Management Inc. increased its position in shares of XL Group by 36.1% in the 3rd quarter. Meeder Asset Management Inc. now owns 14,181 shares of the insurance provider’s stock valued at $559,000 after buying an additional 3,759 shares in the last quarter. Blair William & Co. IL bought a new stake in shares of XL Group in the 2nd quarter valued at $928,000. Marshall Wace North America L.P. increased its position in shares of XL Group by 28.0% in the 2nd quarter. Marshall Wace North America L.P. now owns 75,567 shares of the insurance provider’s stock valued at $3,325,000 after buying an additional 16,513 shares in the last quarter. Nomura Holdings Inc. increased its position in shares of XL Group by 114.1% in the 2nd quarter. Nomura Holdings Inc. now owns 37,848 shares of the insurance provider’s stock valued at $1,659,000 after buying an additional 20,174 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. increased its position in shares of XL Group by 754.3% in the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 67,586 shares of the insurance provider’s stock valued at $2,961,000 after buying an additional 59,675 shares in the last quarter. Institutional investors own 99.06% of the company’s stock.
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XL Group Company Profile
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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