Axis Capital (NYSE:AXS) Releases Quarterly Earnings Results, Misses Estimates By $0.41 EPS

Key Points

• Axis Capital missed earnings expectations: The insurer reported quarterly EPS of $2.84, $0.41 below the $3.25 consensus estimate, while revenue of $1.75 billion slightly exceeded forecasts.
• Shares reached near-record levels despite the earnings miss: AXS rose to $119.19 during Tuesday trading, approaching its 52-week high of $119.99, with a market capitalization of $8.79 billion.
• Investors continue to receive income and analyst support: Axis Capital maintains a quarterly dividend of $0.44 per share, while analysts hold a “Moderate Buy” consensus rating and an average price target of $124.45.

Axis Capital (NYSE:AXS - Get Free Report) released its quarterly earnings results on Tuesday. The insurance provider reported $2.84 earnings per share for the quarter, missing analysts' consensus estimates of $3.25 by ($0.41), FiscalAI reports. The business had revenue of $1.75 billion for the quarter, compared to the consensus estimate of $1.74 billion. Axis Capital had a net margin of 16.00% and a return on equity of 18.12%.

Axis Capital Stock Performance

NYSE:AXS traded up $2.14 during midday trading on Tuesday, reaching $119.19. The stock had a trading volume of 908,411 shares, compared to its average volume of 640,980. Axis Capital has a 1-year low of $88.07 and a 1-year high of $119.99. The firm's fifty day simple moving average is $105.53 and its 200-day simple moving average is $103.03. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a market capitalization of $8.79 billion, a P/E ratio of 8.88, a PEG ratio of 3.40 and a beta of 0.49.

Axis Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Tuesday, June 30th. Axis Capital's dividend payout ratio is currently 13.11%.

Insiders Place Their Bets

In other Axis Capital news, Director Henry B. Smith sold 2,542 shares of the business's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $98.69, for a total transaction of $250,869.98. Following the completion of the transaction, the director owned 46,347 shares of the company's stock, valued at $4,573,985.43. The trade was a 5.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Axis Capital

Hedge funds and other institutional investors have recently made changes to their positions in the business. DV Equities LLC bought a new position in shares of Axis Capital in the fourth quarter worth about $54,000. Johnson Financial Group Inc. bought a new stake in Axis Capital during the 3rd quarter valued at approximately $78,000. Kestra Advisory Services LLC bought a new stake in Axis Capital during the 4th quarter valued at approximately $84,000. Quadrant Capital Group LLC acquired a new stake in Axis Capital in the 4th quarter valued at approximately $101,000. Finally, Empowered Funds LLC acquired a new stake in Axis Capital in the 4th quarter valued at approximately $171,000. 93.44% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on AXS. Bank of America decreased their price objective on shares of Axis Capital from $115.00 to $106.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. Keefe, Bruyette & Woods raised their target price on Axis Capital from $126.00 to $131.00 and gave the company an "outperform" rating in a report on Wednesday, July 8th. Mizuho boosted their price target on Axis Capital from $137.00 to $142.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. UBS Group upped their price target on Axis Capital from $129.00 to $131.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Finally, Atlantic Securities set a $122.00 price objective on Axis Capital in a report on Wednesday, July 15th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $124.45.

About Axis Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism.

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