Axis Capital (NYSE:AXS) Upgraded by Wells Fargo & Company to Overweight Rating

Key Points

• Wells Fargo & Company upgraded Axis Capital's rating from "equal weight" to "overweight" with a new target price of $123.00, indicating a potential upside of 26.71% from the current stock price.
• Axis Capital's latest quarterly earnings reported an EPS of $3.29, exceeding analysts' estimates of $2.88, despite revenue slightly missing expectations at $1.63 billion.
• Insider selling activity was noted, with Director Henry B. Smith selling 3,500 shares and insider Daniel J. Draper selling 4,305 shares recently, indicating a decrease in their stock ownership.

Axis Capital (NYSE:AXS - Get Free Report) was upgraded by equities research analysts at Wells Fargo & Company from an "equal weight" rating to an "overweight" rating in a research report issued on Wednesday, Marketbeat reports. The firm currently has a $123.00 target price on the insurance provider's stock, up from their prior target price of $105.00. Wells Fargo & Company's price target indicates a potential upside of 26.71% from the company's current price.

Other equities analysts have also issued research reports about the company. Wall Street Zen lowered Axis Capital from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. UBS Group lifted their price objective on Axis Capital from $119.00 to $120.00 and gave the company a "buy" rating in a research note on Wednesday. Keefe, Bruyette & Woods lifted their price objective on Axis Capital from $118.00 to $121.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Finally, Weiss Ratings reiterated a "buy (b+)" rating on shares of Axis Capital in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $114.14.

Axis Capital Stock Performance

AXS traded up $0.07 on Wednesday, reaching $97.07. 127,842 shares of the stock were exchanged, compared to its average volume of 697,546. The company's 50-day moving average price is $96.46 and its 200 day moving average price is $98.02. Axis Capital has a fifty-two week low of $77.21 and a fifty-two week high of $107.19. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.69 and a quick ratio of 0.69. The firm has a market capitalization of $7.59 billion, a PE ratio of 9.35, a PEG ratio of 1.41 and a beta of 0.73.

Axis Capital (NYSE:AXS - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The insurance provider reported $3.29 EPS for the quarter, topping analysts' consensus estimates of $2.88 by $0.41. Axis Capital had a return on equity of 18.77% and a net margin of 14.30%.The company had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.68 billion. During the same quarter in the previous year, the firm posted $2.93 EPS. The firm's revenue was up 12.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Axis Capital will post 11.19 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Henry B. Smith sold 3,500 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $98.67, for a total value of $345,345.00. Following the completion of the sale, the director directly owned 47,295 shares in the company, valued at $4,666,597.65. This represents a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Daniel J. Draper sold 4,305 shares of the company's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $97.57, for a total value of $420,038.85. Following the completion of the sale, the insider owned 16,269 shares of the company's stock, valued at $1,587,366.33. This trade represents a 20.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 12,205 shares of company stock valued at $1,188,048 over the last 90 days. Company insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. SBI Securities Co. Ltd. grew its position in Axis Capital by 21.6% in the second quarter. SBI Securities Co. Ltd. now owns 658 shares of the insurance provider's stock worth $68,000 after acquiring an additional 117 shares during the period. Benedict Financial Advisors Inc. grew its position in Axis Capital by 0.5% in the second quarter. Benedict Financial Advisors Inc. now owns 26,541 shares of the insurance provider's stock worth $2,755,000 after acquiring an additional 120 shares during the period. Pitcairn Co. grew its position in Axis Capital by 1.5% in the second quarter. Pitcairn Co. now owns 8,358 shares of the insurance provider's stock worth $868,000 after acquiring an additional 126 shares during the period. Smithfield Trust Co grew its position in Axis Capital by 94.0% in the second quarter. Smithfield Trust Co now owns 293 shares of the insurance provider's stock worth $31,000 after acquiring an additional 142 shares during the period. Finally, Janney Montgomery Scott LLC grew its position in Axis Capital by 2.2% in the first quarter. Janney Montgomery Scott LLC now owns 6,694 shares of the insurance provider's stock worth $671,000 after acquiring an additional 145 shares during the period. 93.44% of the stock is currently owned by hedge funds and other institutional investors.

Axis Capital Company Profile

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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