Reinsurance Group of America, Incorporated (NYSE:RGA) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts give RGA a “Moderate Buy” consensus: Seven of 11 analysts rate the stock a buy, one rates it a strong buy, while the average 12-month price target is $262.56.
• RGA reported quarterly EPS of $8.89, exceeding expectations of $6.50, while revenue rose 18.5% year over year to $6.64 billion.
• The company increased its quarterly dividend to $0.98 per share, or $3.92 annualized, representing a 1.5% yield; institutional investors own 95.11% of the stock.

Reinsurance Group of America, Incorporated (NYSE:RGA - Get Free Report) has received an average recommendation of "Moderate Buy" from the eleven research firms that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have given a hold recommendation, seven have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $262.5556.

A number of analysts have weighed in on RGA shares. Evercore restated an "outperform" rating and set a $267.00 target price on shares of Reinsurance Group of America in a report on Monday, May 18th. Piper Sandler decreased their price objective on Reinsurance Group of America from $263.00 to $261.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Morgan Stanley raised their price objective on Reinsurance Group of America from $223.00 to $250.00 and gave the company an "equal weight" rating in a research report on Monday, August 24th. Wall Street Zen upgraded Reinsurance Group of America from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Reinsurance Group of America from $286.00 to $293.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th.

Insider Activity

In related news, EVP Jonathan Porter sold 8,589 shares of Reinsurance Group of America stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $246.30, for a total value of $2,115,470.70. Following the completion of the sale, the executive vice president directly owned 14,885 shares in the company, valued at $3,666,175.50. This trade represents a 36.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. lifted its position in Reinsurance Group of America by 44.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 221,198 shares of the insurance provider's stock worth $43,554,000 after acquiring an additional 67,880 shares during the period. Focus Partners Wealth raised its stake in shares of Reinsurance Group of America by 121.2% in the first quarter. Focus Partners Wealth now owns 2,676 shares of the insurance provider's stock worth $527,000 after purchasing an additional 1,466 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Reinsurance Group of America by 17.6% during the first quarter. Geneos Wealth Management Inc. now owns 388 shares of the insurance provider's stock worth $76,000 after purchasing an additional 58 shares during the period. Gabelli Funds LLC acquired a new stake in shares of Reinsurance Group of America during the second quarter worth about $1,006,000. Finally, Cerity Partners LLC lifted its holdings in shares of Reinsurance Group of America by 15.5% during the second quarter. Cerity Partners LLC now owns 33,716 shares of the insurance provider's stock worth $6,688,000 after purchasing an additional 4,527 shares during the period. Hedge funds and other institutional investors own 95.11% of the company's stock.

Reinsurance Group of America Trading Down 1.1%

NYSE:RGA opened at $253.09 on Friday. Reinsurance Group of America has a one year low of $178.21 and a one year high of $257.81. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.14 and a current ratio of 0.14. The firm has a market cap of $16.53 billion, a P/E ratio of 11.12 and a beta of 0.47. The firm has a 50-day simple moving average of $238.49 and a 200-day simple moving average of $219.25.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The insurance provider reported $8.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.50 by $2.39. The firm had revenue of $6.64 billion for the quarter, compared to the consensus estimate of $6.67 billion. Reinsurance Group of America had a net margin of 5.81% and a return on equity of 14.78%. The company's quarterly revenue was up 18.5% on a year-over-year basis. During the same period last year, the firm earned $4.72 earnings per share. Equities analysts anticipate that Reinsurance Group of America will post 29.22 EPS for the current fiscal year.

Reinsurance Group of America Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th were paid a dividend of $0.98 per share. The ex-dividend date was Tuesday, August 18th. This is a positive change from Reinsurance Group of America's previous quarterly dividend of $0.93. This represents a $3.92 dividend on an annualized basis and a dividend yield of 1.5%. Reinsurance Group of America's payout ratio is presently 17.22%.

Reinsurance Group of America Company Profile

Reinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.

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