Ategrity Specialty (NYSE:ASIC) Shares Gap Down on Disappointing Earnings

Key Points

• Ategrity Specialty shares fell sharply, opening at $25.05 versus a prior close of $27.87 after the company reported disappointing quarterly results.
• The insurer earned $0.29 per share, missing analysts’ $0.50 consensus estimate by $0.21, while revenue totaled $125.59 million.
• Despite the earnings miss, analysts maintain a “Moderate Buy” consensus, with an average price target of $28.88 and ratings split between three Buys and three Holds.

Ategrity Specialty (NYSE:ASIC - Get Free Report)'s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $27.87, but opened at $25.05. Ategrity Specialty shares last traded at $25.2310, with a volume of 25,031 shares trading hands.

The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.50 by ($0.21). The business had revenue of $125.59 million for the quarter. Ategrity Specialty had a return on equity of 17.12% and a net margin of 21.06%.

Analyst Upgrades and Downgrades

A number of research firms have commented on ASIC. Weiss Ratings downgraded shares of Ategrity Specialty from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 9th. JPMorgan Chase & Co. boosted their target price on Ategrity Specialty from $27.00 to $29.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Citigroup restated a "neutral" rating on shares of Ategrity Specialty in a report on Thursday. Wells Fargo & Company upped their price target on Ategrity Specialty from $30.00 to $31.00 and gave the company an "overweight" rating in a research report on Monday, October 12th. Finally, Barclays set a $27.00 price target on Ategrity Specialty in a report on Thursday. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Ategrity Specialty has a consensus rating of "Moderate Buy" and an average target price of $28.88.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. State of Alaska Department of Revenue grew its holdings in shares of Ategrity Specialty by 52.6% in the third quarter. State of Alaska Department of Revenue now owns 5,589 shares of the company's stock valued at $142,000 after purchasing an additional 1,926 shares during the period. ProCore Advisors LLC increased its position in Ategrity Specialty by 3.3% during the third quarter. ProCore Advisors LLC now owns 16,954 shares of the company's stock worth $433,000 after purchasing an additional 548 shares during the last quarter. Allworth Financial LP increased its position in Ategrity Specialty by 380,266.7% during the second quarter. Allworth Financial LP now owns 45,644 shares of the company's stock worth $1,097,000 after purchasing an additional 45,632 shares during the last quarter. Cannell Capital LLC purchased a new position in Ategrity Specialty during the second quarter worth about $11,791,187. Finally, Bank of America Corp DE purchased a new position in Ategrity Specialty during the second quarter worth about $1,111,000.

Ategrity Specialty Price Performance

The company has a market capitalization of $1.19 billion, a PE ratio of 11.61 and a beta of -0.55. The business's 50 day simple moving average is $26.59 and its 200 day simple moving average is $23.50.

About Ategrity Specialty

Ategrity Specialty is a specialty property and casualty insurance company focused on the excess and surplus (E&S) insurance market. The company provides coverage for risks that may be difficult to place in the standard insurance market because of their size, complexity, unusual characteristics or limited loss history.

Its business is centered on underwriting specialty commercial insurance products, including coverage for property and liability exposures. Ategrity Specialty works with insurance brokers and other distribution partners to develop tailored solutions for businesses with specialized insurance needs.

The company primarily serves the U.S.

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.