Assured Guaranty Ltd. (NYSE:AGO) Stock Has Average Price Target of $91.00

Key Points

• Analyst sentiment is moderately bullish: Assured Guaranty has a consensus “Moderate Buy” rating, with three buys and two holds. The average 12-month price target is $91, compared with the stock’s reported price of $68.38.
• Institutional ownership is high: Hedge funds and other institutional investors own 92.22% of the company, with BlackRock and Norges Bank among the major recent investors. An insider also increased holdings by 20.88% through a purchase of 209,388 shares.
• The company offers shareholder returns and solid profitability: Assured Guaranty reported quarterly EPS of $1.23, a 37.34% net margin, and maintains a quarterly dividend of $0.38 per share, equivalent to a 2.2% annual yield.

Shares of Assured Guaranty Ltd. (NYSE:AGO - Get Free Report) have been given an average rating of "Moderate Buy" by the five ratings firms that are covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $91.00.

Several equities research analysts have weighed in on the stock. UBS Group set a $91.00 target price on shares of Assured Guaranty in a research note on Monday, September 14th. Roth Capital upgraded Assured Guaranty from a "neutral" rating to a "buy" rating and increased their price objective for the company from $80.00 to $85.00 in a report on Friday, September 25th. Keefe, Bruyette & Woods lowered their price objective on Assured Guaranty from $101.00 to $97.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Weiss Ratings downgraded Assured Guaranty from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 9th. Finally, Wall Street Zen raised Assured Guaranty from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th.

Insider Activity

In related news, major shareholder Guaranty Ltd Assured acquired 209,388 shares of the company's stock in a transaction dated Wednesday, July 22nd. The shares were purchased at an average cost of $24.83 per share, with a total value of $5,199,104.04. Following the completion of the acquisition, the insider directly owned 1,212,106 shares of the company's stock, valued at $30,096,591.98. This represents a 20.88% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 5.70% of the company's stock.

Institutional Investors Weigh In On Assured Guaranty

A number of large investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Assured Guaranty during the second quarter worth about $463,926,000. Norges Bank bought a new position in shares of Assured Guaranty during the 4th quarter valued at about $51,538,000. Bank of America Corp DE acquired a new position in shares of Assured Guaranty in the 2nd quarter valued at approximately $30,108,000. Bank of New York Mellon Corp acquired a new position in shares of Assured Guaranty in the 2nd quarter valued at approximately $23,025,000. Finally, Man Group plc bought a new stake in Assured Guaranty during the 2nd quarter worth approximately $13,439,000. Hedge funds and other institutional investors own 92.22% of the company's stock.

Assured Guaranty Price Performance

Shares of AGO stock opened at $68.38 on Monday. Assured Guaranty has a 1-year low of $67.24 and a 1-year high of $92.39. The stock's 50-day moving average is $75.04 and its 200 day moving average is $78.32. The company has a market cap of $3.01 billion, a P/E ratio of 9.12 and a beta of 0.73. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.64 and a quick ratio of 0.64.

Assured Guaranty (NYSE:AGO - Get Free Report) last announced its earnings results on Tuesday, June 30th. The financial services provider reported $1.23 EPS for the quarter. The business had revenue of $195.00 million during the quarter. Assured Guaranty had a net margin of 37.34% and a return on equity of 7.11%. Research analysts predict that Assured Guaranty will post 6.91 earnings per share for the current fiscal year.

Assured Guaranty Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th were paid a dividend of $0.38 per share. The ex-dividend date was Thursday, August 20th. This represents a $1.52 dividend on an annualized basis and a yield of 2.2%. Assured Guaranty's dividend payout ratio is presently 20.27%.

Assured Guaranty Company Profile

Assured Guaranty Ltd. NYSE: AGO is a Bermuda-based holding company that provides financial guarantees and related insurance services through its subsidiaries. The company helps protect investors and lenders from losses arising from defaults on debt obligations, with a primary focus on public finance and structured finance markets.

Its public finance business provides guarantees for municipal bonds and other obligations issued to fund essential infrastructure and public services, including transportation, utilities, healthcare and education.

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