Assured Guaranty (NYSE:AGO) Hits New 1-Year Low - Here's Why

Key Points

• Assured Guaranty shares hit a new 52-week low, trading as low as $71.96 and down 1.7%. The stock’s average analyst rating is “Hold,” with an average price target of $89.33.
• The company reported quarterly EPS of $1.23 on $195 million in revenue, with a 37.34% net margin and 7.11% return on equity. Analysts expect full-year EPS of approximately $6.91.
• Assured Guaranty declared a quarterly dividend of $0.38, equivalent to $1.52 annually and a 2.1% yield. A major shareholder also increased its stake by purchasing 209,388 shares, while institutional investors own 92.22% of the stock.

Assured Guaranty Ltd. (NYSE:AGO - Get Free Report) reached a new 52-week low during trading on Tuesday . The company traded as low as $71.96 and last traded at $71.9160, with a volume of 8105 shares. The stock had previously closed at $72.93.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on AGO shares. Keefe, Bruyette & Woods lowered their price target on shares of Assured Guaranty from $101.00 to $97.00 and set an "outperform" rating on the stock in a report on Thursday, August 13th. Wall Street Zen upgraded shares of Assured Guaranty from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. UBS Group set a $91.00 price objective on shares of Assured Guaranty in a research report on Monday. Finally, Weiss Ratings cut shares of Assured Guaranty from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 9th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Assured Guaranty has an average rating of "Hold" and an average price target of $89.33.

Assured Guaranty Trading Down 1.7%

The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.64 and a current ratio of 0.64. The company has a market capitalization of $3.15 billion, a PE ratio of 9.59 and a beta of 0.73. The stock has a fifty day moving average of $79.01 and a 200 day moving average of $79.89.

Assured Guaranty (NYSE:AGO - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The financial services provider reported $1.23 earnings per share (EPS) for the quarter. Assured Guaranty had a net margin of 37.34% and a return on equity of 7.11%. The business had revenue of $195.00 million during the quarter. As a group, sell-side analysts predict that Assured Guaranty Ltd. will post 6.91 earnings per share for the current fiscal year.

Assured Guaranty Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th were issued a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date was Thursday, August 20th. Assured Guaranty's payout ratio is currently 20.27%.

Insider Transactions at Assured Guaranty

In related news, major shareholder Guaranty Ltd Assured purchased 209,388 shares of the firm's stock in a transaction on Wednesday, July 22nd. The shares were acquired at an average price of $24.83 per share, for a total transaction of $5,199,104.04. Following the purchase, the insider directly owned 1,212,106 shares in the company, valued at $30,096,591.98. This trade represents a 20.88% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 5.70% of the company's stock.

Institutional Investors Weigh In On Assured Guaranty

Several large investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Assured Guaranty in the 2nd quarter valued at approximately $27,000. Greykasell Wealth Strategies Inc. purchased a new stake in Assured Guaranty during the 4th quarter valued at $45,000. Elevation Wealth Partners LLC lifted its position in Assured Guaranty by 309.2% in the second quarter. Elevation Wealth Partners LLC now owns 581 shares of the financial services provider's stock worth $47,000 after buying an additional 439 shares during the last quarter. Persistent Asset Partners Ltd bought a new stake in Assured Guaranty in the second quarter worth $72,000. Finally, Allworth Financial LP purchased a new position in Assured Guaranty during the second quarter worth $76,000. 92.22% of the stock is owned by institutional investors.

Assured Guaranty Company Profile

Assured Guaranty Ltd. NYSE: AGO is a Bermuda-based financial services company that provides financial guarantees and related credit enhancement products. Through its operating subsidiaries, the company helps support the repayment of debt issued by public-sector entities, infrastructure projects and other borrowers.

The company's principal business is financial guaranty insurance, which generally protects investors against scheduled principal and interest payment defaults on insured obligations.

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