Bank of New York Mellon Corp Invests $82.84 Million in Reinsurance Group of America, Incorporated $RGA

Key Points

• Bank of New York Mellon acquired 389,543 shares of Reinsurance Group of America worth approximately $82.84 million, giving it a 0.59% stake. Institutional investors collectively own 95.11% of RGA.
• RGA reported quarterly EPS of $8.89, well above the $6.50 analyst consensus, while revenue rose 18.5% year over year to $6.64 billion. The company also increased its quarterly dividend to $0.98, implying a 1.6% annual yield.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $262.56; Wells Fargo recently raised its target to $291 and UBS upgraded the stock to “strong buy.”

Bank of New York Mellon Corp bought a new stake in Reinsurance Group of America, Incorporated (NYSE:RGA - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 389,543 shares of the insurance provider's stock, valued at approximately $82,836,000. Bank of New York Mellon Corp owned 0.59% of Reinsurance Group of America at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of RGA. Principal Securities Inc. raised its holdings in shares of Reinsurance Group of America by 3.6% in the fourth quarter. Principal Securities Inc. now owns 1,490 shares of the insurance provider's stock valued at $303,000 after buying an additional 52 shares during the last quarter. Rehmann Capital Advisory Group increased its position in Reinsurance Group of America by 1.3% in the 3rd quarter. Rehmann Capital Advisory Group now owns 4,281 shares of the insurance provider's stock valued at $819,000 after acquiring an additional 54 shares during the period. CIBC Private Wealth Group LLC raised its stake in Reinsurance Group of America by 6.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 974 shares of the insurance provider's stock valued at $198,000 after acquiring an additional 56 shares during the last quarter. Covestor Ltd raised its stake in Reinsurance Group of America by 12.2% during the 4th quarter. Covestor Ltd now owns 533 shares of the insurance provider's stock valued at $108,000 after acquiring an additional 58 shares during the last quarter. Finally, Geneos Wealth Management Inc. lifted its position in Reinsurance Group of America by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 388 shares of the insurance provider's stock worth $76,000 after acquiring an additional 58 shares during the period. Hedge funds and other institutional investors own 95.11% of the company's stock.

Reinsurance Group of America Stock Performance

Shares of RGA opened at $244.59 on Wednesday. The company has a 50-day simple moving average of $232.33 and a 200-day simple moving average of $217.56. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $15.97 billion, a PE ratio of 10.74 and a beta of 0.47. Reinsurance Group of America, Incorporated has a 52-week low of $178.21 and a 52-week high of $251.00.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The insurance provider reported $8.89 EPS for the quarter, beating the consensus estimate of $6.50 by $2.39. Reinsurance Group of America had a net margin of 5.81% and a return on equity of 14.78%. The firm had revenue of $6.64 billion during the quarter, compared to analysts' expectations of $6.67 billion. During the same quarter last year, the business earned $4.72 earnings per share. The business's revenue for the quarter was up 18.5% compared to the same quarter last year. Equities research analysts predict that Reinsurance Group of America, Incorporated will post 28.26 earnings per share for the current fiscal year.

Reinsurance Group of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be issued a $0.98 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 1.6%. This is an increase from Reinsurance Group of America's previous quarterly dividend of $0.93. Reinsurance Group of America's payout ratio is currently 17.22%.

Analysts Set New Price Targets

Several research analysts have weighed in on RGA shares. Wells Fargo & Company lifted their target price on Reinsurance Group of America from $269.00 to $291.00 and gave the company an "overweight" rating in a research note on Wednesday, August 19th. TD Cowen upped their price target on Reinsurance Group of America from $212.00 to $235.00 and gave the stock a "hold" rating in a research note on Wednesday, July 22nd. 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 reiterated a "buy (b)" rating on shares of Reinsurance Group of America in a research report on Friday, August 7th. Finally, Piper Sandler dropped their price objective on shares of Reinsurance Group of America from $263.00 to $261.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Reinsurance Group of America currently has a consensus rating of "Moderate Buy" and an average target price of $262.56.

Insiders Place Their Bets

In other news, EVP Jonathan Porter sold 8,589 shares of Reinsurance Group of America stock in a transaction on 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 transaction, the executive vice president owned 14,885 shares of the company's stock, valued at $3,666,175.50. The trade was a 36.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 0.60% of the stock is owned by insiders.

Reinsurance Group of America 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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