Reinsurance Group of America (NYSE:RGA) Posts Earnings Results, Beats Estimates By $1.52 EPS

Key Points

• Reinsurance Group of America reported quarterly EPS of $8.49, beating the $6.97 consensus estimate by $1.52; revenue of $7.55 billion also exceeded expectations of $6.69 billion.
• Despite the earnings beat, shares fell 1.8% in Thursday mid-day trading to $261.74.
• Analysts’ consensus rating is Buy, with an average price target of $273.75; one executive vice president also sold 8,589 shares.

Reinsurance Group of America (NYSE:RGA - Get Free Report) released its earnings results on Thursday. The insurance provider reported $8.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.97 by $1.52, FiscalAI reports. Reinsurance Group of America had a return on equity of 14.78% and a net margin of 5.81%. The company had revenue of $7.55 billion for the quarter, compared to analysts' expectations of $6.69 billion.

Reinsurance Group of America Stock Down 1.8%

Shares of NYSE:RGA traded down $4.92 during mid-day trading on Thursday, hitting $261.74. 514,266 shares of the company traded hands, compared to its average volume of 379,020. The firm's 50 day simple moving average is $254.55 and its 200 day simple moving average is $225.66. Reinsurance Group of America has a 52-week low of $182.73 and a 52-week high of $272.44. 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 $17.09 billion, a P/E ratio of 11.49 and a beta of 0.43.

Insiders Place Their Bets

In other news, EVP Jonathan Porter sold 8,589 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $246.30, for a total transaction 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.60% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several analysts recently commented on RGA shares. TD Cowen raised their price objective on shares of Reinsurance Group of America from $235.00 to $250.00 and gave the company a "hold" rating in a research note on Wednesday, October 21st. UBS Group raised Reinsurance Group of America from a "hold" rating to a "strong-buy" rating in a report on Friday, July 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Reinsurance Group of America in a research note on Friday, August 7th. Barclays set a $292.00 price target on shares of Reinsurance Group of America in a research note on Thursday, October 8th. Finally, Wells Fargo & Company upped their target price on Reinsurance Group of America from $291.00 to $292.00 and gave the company an "overweight" rating in a research note on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Reinsurance Group of America presently has an average rating of "Buy" and an average target price of $273.75.

Reinsurance Group of America Company Profile

Reinsurance Group of America, Incorporated NYSE: RGA is a global provider of life and health reinsurance. The company works with insurance carriers to help them manage mortality, longevity, morbidity and other insurance risks, while supporting the development and distribution of life and health insurance products.

RGA's offerings include traditional life reinsurance, including term, whole life and universal life coverage, as well as health reinsurance and financial solutions. Its financial solutions business provides capital management, asset-intensive reinsurance, longevity and other risk-management arrangements designed to help insurers manage their balance sheets and meet changing customer and regulatory needs.

Founded in 1973 as part of General American Life Insurance Company, RGA became an independent public company in 1993.

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