Greenlight Capital Re (NASDAQ:GLRE) Stock Price Down 7.4% Following Weak Earnings

Key Points

• Greenlight Capital Re shares fell 7.4% after the company reported a quarterly loss of $0.89 per share, missing the $0.35-per-share consensus estimate, while revenue of $137.46 million also fell short of expectations.
• Analyst sentiment remains mixed but leans positive, with one Buy and one Hold rating producing a “Moderate Buy” consensus.
• Insiders sold 85,472 shares worth approximately $1.47 million over the past quarter, while institutional investors and hedge funds own 41.52% of the company.

Greenlight Capital Re, Ltd. (NASDAQ:GLRE - Get Free Report)'s share price traded down 7.4% during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $14.56 and last traded at $15.15. Approximately 40,841 shares were traded during trading, a decline of 77% from the average daily volume of 175,380 shares. The stock had previously closed at $16.36.

The financial services provider reported ($0.89) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.35) by ($0.54). Greenlight Capital Re had a net margin of 11.47% and a return on equity of 11.69%. The business had revenue of $137.46 million during the quarter, compared to analyst estimates of $163.43 million.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on GLRE. Zacks Research upgraded shares of Greenlight Capital Re to a "hold" rating in a report on Wednesday, May 27th. Wall Street Zen cut shares of Greenlight Capital Re from a "buy" rating to a "hold" rating in a research report on Sunday, June 7th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Greenlight Capital Re in a research note on Monday, July 6th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Greenlight Capital Re presently has a consensus rating of "Moderate Buy".

Insider Transactions at Greenlight Capital Re

In other news, Director Joseph P. Platt, Jr. sold 11,747 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $16.87, for a total transaction of $198,171.89. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel David Sigmon sold 7,500 shares of Greenlight Capital Re stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $17.33, for a total transaction of $129,975.00. Following the completion of the sale, the general counsel owned 32,678 shares in the company, valued at $566,309.74. This trade represents a 18.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 85,472 shares of company stock worth $1,472,107. 24.67% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Greenlight Capital Re

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC lifted its position in Greenlight Capital Re by 61.1% during the 1st quarter. AQR Capital Management LLC now owns 44,893 shares of the financial services provider's stock worth $608,000 after buying an additional 17,029 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of Greenlight Capital Re by 8.3% in the 1st quarter. Empowered Funds LLC now owns 117,805 shares of the financial services provider's stock valued at $1,596,000 after acquiring an additional 9,066 shares in the last quarter. Jane Street Group LLC acquired a new stake in shares of Greenlight Capital Re in the first quarter valued at about $335,000. First Trust Advisors LP increased its position in shares of Greenlight Capital Re by 3.2% in the second quarter. First Trust Advisors LP now owns 81,531 shares of the financial services provider's stock valued at $1,172,000 after acquiring an additional 2,553 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in Greenlight Capital Re by 0.3% during the second quarter. Ameriprise Financial Inc. now owns 663,297 shares of the financial services provider's stock worth $9,532,000 after acquiring an additional 2,180 shares in the last quarter. 41.52% of the stock is currently owned by institutional investors and hedge funds.

Greenlight Capital Re Stock Down 6.8%

The firm has a fifty day moving average of $16.28 and a 200-day moving average of $16.12. The company has a quick ratio of 2.46, a current ratio of 2.46 and a debt-to-equity ratio of 0.01. The firm has a market cap of $505.45 million, a P/E ratio of 6.43 and a beta of 0.33.

About Greenlight Capital Re

Greenlight Capital Re Ltd. NASDAQ: GLRE is a Bermuda‐incorporated reinsurer externally managed by Greenlight Capital Re Services Ltd., a subsidiary of Greenlight Capital, Inc Since its formation in 2016 and subsequent initial public offering in 2017, the company has focused on providing customized reinsurance solutions to insurers worldwide. Greenlight Capital Re operates as an independent, publicly traded entity, leveraging the investment expertise and underwriting rigor that underpin its parent's investment platform.

The company's core business activities encompass both treaty and facultative reinsurance across a broad spectrum of property and casualty lines.

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