Fidelis Insurance (NYSE:PLGO) Shares Gap Down on Disappointing Earnings

Key Points

• Fidelis Insurance shares fell sharply after weaker-than-expected earnings, opening at $21.08 versus a prior close of $24.32 and later trading near $22.42.
• The company reported quarterly revenue of $650 million and earnings per share of $0.34, alongside a 15.33% net margin and 14.44% return on equity.
• Fidelis declared a quarterly dividend of $0.15, equivalent to $0.60 annually and a 2.6% yield. Analysts have a consensus “Hold” rating with an average price target of $27.40, despite mixed recent rating changes.

Fidelis Insurance Holdings Limited (NYSE:PLGO - Get Free Report) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $24.32, but opened at $21.08. Fidelis Insurance shares last traded at $22.42, with a volume of 318,037 shares trading hands.

The company reported $0.34 earnings per share for the quarter. Fidelis Insurance had a net margin of 15.33% and a return on equity of 14.44%. The firm had revenue of $650.00 million during the quarter.

Fidelis Insurance Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Monday, September 14th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Monday, September 14th. Fidelis Insurance's payout ratio is currently 16.04%.

Analyst Ratings Changes

PLGO has been the subject of several analyst reports. JPMorgan Chase & Co. raised their target price on Fidelis Insurance from $23.00 to $26.00 and gave the stock an "underweight" rating in a research note on Monday, July 20th. UBS Group upped their price target on Fidelis Insurance from $28.00 to $29.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Zacks Research downgraded shares of Fidelis Insurance from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Wall Street Zen raised shares of Fidelis Insurance from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. Finally, Citizens Jmp upped their target price on shares of Fidelis Insurance from $28.00 to $29.00 and gave the stock a "market outperform" rating in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Fidelis Insurance presently has a consensus rating of "Hold" and an average price target of $27.40.

Fidelis Insurance Stock Performance

The business has a 50 day moving average price of $24.46. The firm has a market cap of $1.96 billion, a price-to-earnings ratio of 6.07 and a beta of 0.28. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.37.

Fidelis Insurance Company Profile

Fidelis is a leading global provider of bespoke and specialty insurance and reinsurance products. We believe our differentiated underwriting positions us well to generate strong returns across (re)insurance cycles. Current Fidelis is led by Mr. Daniel Burrows who has more than 35 years of experience in the insurance industry and is supported by a highly experienced management team that manages the operations of Current Fidelis based on our founding principles. Following the Separation Transactions, Current Fidelis is positioned as a global, specialty insurance provider with exclusive right of first access to Fidelis MGU's underwriting business during the term of the Framework Agreement.

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