Markel Group (NYSE:MKL) Shares Down 6.8% After Earnings Miss

Key Points

• Shares fell 6.8% after Markel reported an unexpected EPS loss of ($18.90) versus a consensus of $26.38, sending the stock as low as $1,750 on the day.
• Revenue beat expectations at $2.82 billion (vs. $2.38 billion expected), but the earnings shortfall outweighed the top-line beat; the company has a market cap of $22.34 billion and a reported P/E of 10.48.
• Analyst coverage is mixed (average rating: Hold) with a consensus target of $2,100, while the CEO sold 100 shares and insiders own 1.08% of the stock as institutions hold 77.12%.

Markel Group Inc. (NYSE:MKL - Get Free Report) fell 6.8% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $1,750.00 and last traded at $1,779.4810. 23,874 shares were traded during mid-day trading, a decline of 52% from the average session volume of 50,210 shares. The stock had previously closed at $1,908.99.

The insurance provider reported ($18.90) EPS for the quarter, missing the consensus estimate of $26.38 by ($45.28). Markel Group had a return on equity of 8.21% and a net margin of 13.22%.The firm had revenue of $2.82 billion during the quarter, compared to analysts' expectations of $2.38 billion.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on MKL shares. Truist Financial raised their price target on Markel Group from $2,000.00 to $2,100.00 and gave the stock a "hold" rating in a research note on Friday, February 6th. Weiss Ratings restated a "buy (b+)" rating on shares of Markel Group in a research note on Friday, March 27th. Zacks Research downgraded Markel Group from a "strong-buy" rating to a "hold" rating in a report on Monday, January 19th. Brean Capital initiated coverage on Markel Group in a report on Tuesday, March 24th. They set a "neutral" rating and a $2,100.00 target price for the company. Finally, Wall Street Zen raised shares of Markel Group from a "hold" rating to a "buy" rating in a research report on Saturday, March 14th. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $2,100.00.

Insider Activity at Markel Group

In related news, CEO Simon Wilson sold 100 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $2,079.48, for a total transaction of $207,948.00. Following the transaction, the chief executive officer directly owned 2,397 shares of the company's stock, valued at approximately $4,984,513.56. The trade was a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 1.08% of the company's stock.

Institutional Trading of Markel Group

A number of hedge funds have recently made changes to their positions in the company. Canerector Inc. boosted its stake in shares of Markel Group by 191,036.0% in the third quarter. Canerector Inc. now owns 10,703,616 shares of the insurance provider's stock valued at $20,458,463,000 after purchasing an additional 10,698,016 shares during the period. Vanguard Group Inc. increased its stake in Markel Group by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 1,172,997 shares of the insurance provider's stock worth $2,242,020,000 after buying an additional 5,184 shares during the period. Principal Financial Group Inc. lifted its holdings in Markel Group by 1.8% in the 3rd quarter. Principal Financial Group Inc. now owns 547,188 shares of the insurance provider's stock worth $1,045,947,000 after buying an additional 9,496 shares in the last quarter. Davis Selected Advisers boosted its position in Markel Group by 11.1% in the 4th quarter. Davis Selected Advisers now owns 415,160 shares of the insurance provider's stock valued at $892,496,000 after buying an additional 41,632 shares during the last quarter. Finally, Select Equity Group L.P. boosted its position in Markel Group by 75.9% in the 2nd quarter. Select Equity Group L.P. now owns 336,369 shares of the insurance provider's stock valued at $671,850,000 after buying an additional 145,146 shares during the last quarter. Hedge funds and other institutional investors own 77.12% of the company's stock.

Markel Group Stock Down 6.8%

The company has a market capitalization of $22.34 billion, a price-to-earnings ratio of 10.48 and a beta of 0.79. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.23. The firm has a 50 day moving average price of $1,960.80 and a two-hundred day moving average price of $2,022.14.

About Markel Group

Markel Group NYSE: MKL is a diversified insurance holding company best known for underwriting specialty insurance products. Founded in 1930 and headquartered in Richmond, Virginia, the company provides a wide range of commercial property and casualty coverages tailored to niche and hard-to-place risks. Its underwriting operations focus on specialty lines across multiple industries, delivering customized policy structures, program administration, and claims management services for complex exposures.

In addition to primary specialty insurance, Markel operates reinsurance and alternative risk-transfer activities and manages invested assets derived from underwriting float.

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