Reinsurance Group of America (RGA) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Reinsurance Group of America (NYSE:RGA) from a hold rating to a buy rating in a research note released on Wednesday morning. The firm currently has $161.00 price objective on the insurance provider’s stock.

According to Zacks, “Reinsurance Group steadily benefits from a mix of organic and transactional opportunities. Its niche position in the United States and Canadian reinsurance markets as well as the expansion of its international footprint and diversified earnings stream are key positives. Moreover, the company is poised to benefit from an improving life reinsurance pricing environment. It expects its adjusted operating income to grow in the range of 5-8% and the operating ROE to rise between 10% and 12% in the intermediate term. The company has also witnessed its estimates for 2019 and 2020 move north by a couple of cents each in the last 30 days. However, exposure to unfavorable foreign exchange movement, the company’s unstable Australian business and the evolving capital requirements pose challenges to Reinsurance Group in the near term. Shares of Reinsurance Group have underperformed the industry year to date.”

Several other research analysts have also recently issued reports on RGA. Royal Bank of Canada upgraded Reinsurance Group of America from a sector perform rating to an outperform rating and set a $165.00 price objective for the company in a research report on Tuesday, December 11th. Morgan Stanley increased their price objective on Reinsurance Group of America from $131.00 to $134.00 and gave the stock an underweight rating in a research report on Tuesday, November 13th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $144.83.

Reinsurance Group of America stock opened at $145.31 on Wednesday. Reinsurance Group of America has a 12 month low of $127.84 and a 12 month high of $163.00. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.13 and a quick ratio of 0.13. The company has a market cap of $9.13 billion, a PE ratio of 11.99 and a beta of 0.67.

Reinsurance Group of America (NYSE:RGA) last released its quarterly earnings results on Monday, January 28th. The insurance provider reported $3.46 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $3.38 by $0.08. Reinsurance Group of America had a return on equity of 9.11% and a net margin of 5.56%. The business had revenue of $3.28 billion during the quarter, compared to analysts’ expectations of $3.26 billion. During the same quarter in the prior year, the business earned $2.60 earnings per share. The company’s quarterly revenue was up 1.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Reinsurance Group of America will post 13.13 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, February 28th. Shareholders of record on Thursday, February 7th were given a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 1.65%. The ex-dividend date was Wednesday, February 6th. Reinsurance Group of America’s payout ratio is 19.80%.

Reinsurance Group of America announced that its board has authorized a stock buyback plan on Monday, January 28th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the insurance provider to reacquire up to 4.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

In other Reinsurance Group of America news, CFO Todd C. Larson sold 4,836 shares of the company’s stock in a transaction on Friday, February 15th. The stock was sold at an average price of $144.39, for a total value of $698,270.04. Following the sale, the chief financial officer now owns 32,079 shares of the company’s stock, valued at $4,631,886.81. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Alan C. Henderson sold 1,200 shares of the company’s stock in a transaction on Monday, February 25th. The shares were sold at an average price of $145.00, for a total value of $174,000.00. Following the completion of the sale, the director now directly owns 17,715 shares in the company, valued at approximately $2,568,675. The disclosure for this sale can be found here. Insiders sold 11,533 shares of company stock worth $1,662,897 in the last three months. 0.69% of the stock is owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of the business. Daiwa SB Investments Ltd. boosted its stake in shares of Reinsurance Group of America by 11.1% during the fourth quarter. Daiwa SB Investments Ltd. now owns 700 shares of the insurance provider’s stock valued at $98,000 after acquiring an additional 70 shares during the last quarter. Rehmann Capital Advisory Group boosted its stake in shares of Reinsurance Group of America by 16.2% during the fourth quarter. Rehmann Capital Advisory Group now owns 652 shares of the insurance provider’s stock valued at $91,000 after acquiring an additional 91 shares during the last quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC boosted its stake in shares of Reinsurance Group of America by 7.8% during the fourth quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 1,274 shares of the insurance provider’s stock valued at $178,000 after acquiring an additional 92 shares during the last quarter. Nissay Asset Management Corp Japan ADV boosted its stake in shares of Reinsurance Group of America by 1.8% during the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 5,451 shares of the insurance provider’s stock valued at $764,000 after acquiring an additional 99 shares during the last quarter. Finally, FTB Advisors Inc. boosted its stake in shares of Reinsurance Group of America by 43.4% during the fourth quarter. FTB Advisors Inc. now owns 327 shares of the insurance provider’s stock valued at $44,000 after acquiring an additional 99 shares during the last quarter. 91.83% of the stock is currently owned by institutional investors.

Reinsurance Group of America Company Profile

Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products, as well as asset-intensive and financial reinsurance products.

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