Royal Bank of Canada Boosts Holdings in Reinsurance Group of America, Incorporated $RGA

Key Points

• Royal Bank of Canada increased its RGA holdings by 14.5% in the first quarter to 71,386 shares valued at approximately $14.6 million. Institutional investors collectively own 95.11% of the company.
• RGA reported quarterly EPS of $8.89, beating consensus by $2.39, while revenue rose 18.5% year over year to $6.64 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $256.33.
• The company raised its quarterly dividend 5.4% to $0.98 per share, implying a 1.6% annual yield. Shares opened at $246.13, near their 52-week high, while two executives recently sold shares.

Royal Bank of Canada raised its position in Reinsurance Group of America, Incorporated (NYSE:RGA - Free Report) by 14.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 71,386 shares of the insurance provider's stock after purchasing an additional 9,038 shares during the period. Royal Bank of Canada owned 0.11% of Reinsurance Group of America worth $14,574,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Activest Wealth Management bought a new stake in Reinsurance Group of America during the fourth quarter valued at $30,000. Tobam raised its holdings in shares of Reinsurance Group of America by 244.7% in the 4th quarter. Tobam now owns 162 shares of the insurance provider's stock valued at $33,000 after acquiring an additional 115 shares in the last quarter. International Assets Investment Management LLC purchased a new stake in shares of Reinsurance Group of America in the 4th quarter valued at about $35,000. Advisory Services Network LLC bought a new stake in shares of Reinsurance Group of America during the 3rd quarter valued at about $38,000. Finally, Entrust Financial LLC purchased a new position in shares of Reinsurance Group of America during the fourth quarter worth about $40,000. Institutional investors own 95.11% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on RGA shares. Wall Street Zen raised shares of Reinsurance Group of America from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. JPMorgan Chase & Co. increased their price target on shares of Reinsurance Group of America from $270.00 to $286.00 and gave the stock an "overweight" rating in a report on Tuesday, July 21st. UBS Group upgraded shares of Reinsurance Group of America from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 24th. Wells Fargo & Company lifted their price objective on shares of Reinsurance Group of America from $261.00 to $269.00 and gave the stock an "overweight" rating in a report on Thursday, July 9th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Reinsurance Group of America in a research note on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $256.33.

Insider Activity

In other news, EVP Ronald Herrmann sold 7,000 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $210.58, for a total transaction of $1,474,060.00. Following the transaction, the executive vice president directly owned 3,938 shares of the company's stock, valued at approximately $829,264.04. This trade represents a 64.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP John W. Hayden sold 414 shares of Reinsurance Group of America stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $214.95, for a total value of $88,989.30. Following the completion of the transaction, the executive vice president owned 20,949 shares in the company, valued at approximately $4,502,987.55. This represents a 1.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.60% of the company's stock.

Reinsurance Group of America Stock Up 4.2%

Shares of NYSE RGA opened at $246.13 on Friday. The stock has a market capitalization of $16.12 billion, a P/E ratio of 10.81 and a beta of 0.47. Reinsurance Group of America, Incorporated has a one year low of $178.21 and a one year high of $248.13. The firm's 50 day simple moving average is $222.38 and its two-hundred day simple moving average is $213.52. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.14 and a quick ratio of 0.14.

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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.50 by $2.39. Reinsurance Group of America had a net margin of 5.81% and a return on equity of 14.90%. The company had revenue of $6.64 billion during the quarter, compared to analysts' expectations of $6.67 billion. During the same quarter in the prior year, the company earned $4.72 EPS. The firm's revenue was up 18.5% on a year-over-year basis. As a group, analysts expect that Reinsurance Group of America, Incorporated will post 26.84 EPS for the current fiscal year.

Reinsurance Group of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be given a dividend of $0.98 per share. The ex-dividend date is 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 annualized dividend and a yield of 1.6%. Reinsurance Group of America's dividend payout ratio (DPR) is currently 20.15%.

Reinsurance Group of America News Roundup

Here are the key news stories impacting Reinsurance Group of America this week:

• Positive Sentiment: Significant earnings beat: RGA reported second-quarter earnings of $8.89 per share, well above the roughly $6.50 analyst consensus and up from $4.72 a year earlier. The result was supported by stronger premiums, investment income and growth in the Financial Solutions business. RGA Q2 Earnings Beat Estimates on Higher Premiums, Investment Income
• Positive Sentiment: Strong operating growth: Quarterly revenue reached $6.64 billion, an 18.5% year-over-year increase. Although revenue was modestly below the $6.67 billion consensus, the substantial profit improvement and record quarterly result appear to have outweighed that small shortfall. Reinsurance Group Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Dividend raised: The company increased its quarterly dividend by 5.4% to $0.98 per share, reinforcing the income appeal of the stock and signaling management’s confidence in cash-generation capacity. Reinsurance Group of America Raises Dividend by 5.4%
• Neutral Sentiment: Broader market support: RGA’s advance also occurred as the S&P 500 and other large-cap stocks gained, suggesting that general market sentiment contributed to the move alongside company-specific earnings news. Why Did RGA Climb as S&P 500 Firms Rose?
• Negative Sentiment: Expense pressure remains: Higher expenses partly offset the benefit of stronger premiums and investment income, while the slight revenue miss gives investors a reason to monitor margins and the sustainability of recent earnings gains.

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.

Want to see what other hedge funds are holding RGA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Reinsurance Group of America, Incorporated (NYSE:RGA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source