RenaissanceRe (NYSE:RNR) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of RenaissanceRe (NYSE:RNR) from a hold rating to a buy rating in a report issued on Wednesday morning, Zacks.com reports. They currently have $201.00 price objective on the insurance provider’s stock.

According to Zacks, “RenaissanceRe's shares have outperformed its industry in a year's time. It has also been witnessing steady premium growth over the last few quarters driven by Casualty and Specialty plus Property segments. It has been acquiring companies to strengthen its business. It effectively deploys capital backed by operational excellence and solid cash flows. It has been undertaking divestitures to streamline its operations by getting rid of low-return high-risk businesses. However, being a property and casualty insurer, it remains exposed to high severity loss associated with catastrophic events on a worldwide basis. Moreover, an increasing debt-level continues to weigh on the margins of the company.”

RNR has been the topic of a number of other research reports. ValuEngine downgraded shares of RenaissanceRe from a buy rating to a hold rating in a report on Friday, August 30th. Wells Fargo & Co boosted their price objective on shares of RenaissanceRe from $155.00 to $175.00 and gave the stock a market perform rating in a report on Thursday, July 11th. Morgan Stanley boosted their price objective on shares of RenaissanceRe from $164.00 to $193.00 and gave the stock an equal weight rating in a report on Wednesday, August 7th. Deutsche Bank downgraded shares of RenaissanceRe from a buy rating to a hold rating and set a $186.00 price objective on the stock. in a report on Monday, July 15th. They noted that the move was a valuation call. Finally, JPMorgan Chase & Co. boosted their price objective on shares of RenaissanceRe from $154.00 to $187.00 and gave the stock a neutral rating in a report on Wednesday, July 24th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the company. RenaissanceRe presently has a consensus rating of Hold and an average target price of $173.50.

Shares of RenaissanceRe stock traded down $0.66 on Wednesday, reaching $189.31. 189,246 shares of the stock were exchanged, compared to its average volume of 229,050. RenaissanceRe has a 1-year low of $118.28 and a 1-year high of $195.18. The company has a current ratio of 1.54, a quick ratio of 1.54 and a debt-to-equity ratio of 0.26. The business has a fifty day moving average price of $189.14 and a two-hundred day moving average price of $176.68. The firm has a market capitalization of $8.39 billion, a PE ratio of 20.64, a PEG ratio of 1.50 and a beta of 0.31.

RenaissanceRe (NYSE:RNR) last issued its quarterly earnings results on Tuesday, July 23rd. The insurance provider reported $4.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.58 by $1.20. RenaissanceRe had a net margin of 19.47% and a return on equity of 8.87%. The business had revenue of $1.02 billion for the quarter, compared to analyst estimates of $824.40 million. During the same period in the previous year, the business posted $5.23 earnings per share. The business’s revenue was up 69.2% compared to the same quarter last year. Research analysts expect that RenaissanceRe will post 13.38 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Investors of record on Friday, September 13th were issued a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 0.72%. The ex-dividend date was Thursday, September 12th. RenaissanceRe’s dividend payout ratio is currently 14.83%.

In other RenaissanceRe news, SVP Sean G. Brosnan sold 931 shares of the company’s stock in a transaction dated Tuesday, July 30th. The shares were sold at an average price of $183.91, for a total value of $171,220.21. Following the sale, the senior vice president now owns 8,779 shares of the company’s stock, valued at $1,614,545.89. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Kevin Odonnell sold 28,375 shares of the company’s stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $182.05, for a total transaction of $5,165,668.75. The disclosure for this sale can be found here. 1.60% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. lifted its holdings in shares of RenaissanceRe by 6.7% in the second quarter. BlackRock Inc. now owns 5,639,237 shares of the insurance provider’s stock valued at $1,003,839,000 after purchasing an additional 355,771 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of RenaissanceRe by 3.2% in the second quarter. Vanguard Group Inc. now owns 4,581,520 shares of the insurance provider’s stock valued at $815,556,000 after purchasing an additional 141,400 shares in the last quarter. AQR Capital Management LLC lifted its holdings in shares of RenaissanceRe by 102.5% in the second quarter. AQR Capital Management LLC now owns 514,481 shares of the insurance provider’s stock valued at $91,583,000 after purchasing an additional 260,363 shares in the last quarter. Northern Trust Corp raised its position in shares of RenaissanceRe by 3.7% in the second quarter. Northern Trust Corp now owns 460,850 shares of the insurance provider’s stock valued at $82,036,000 after buying an additional 16,393 shares during the last quarter. Finally, Bank of America Corp DE raised its position in shares of RenaissanceRe by 32.4% in the second quarter. Bank of America Corp DE now owns 346,180 shares of the insurance provider’s stock valued at $61,622,000 after buying an additional 84,649 shares during the last quarter. 95.09% of the stock is currently owned by institutional investors.

About RenaissanceRe

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including earthquakes, hurricanes, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S.

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