James River Group (NASDAQ:JRVR) Stock Price Breaks Below 50 Day Moving Average on Disappointing Earnings

Key Points

• James River Group shares fell below their 50-day moving average after disappointing earnings, trading as low as $3.75 versus a $3.79 average.
• The insurer reported a quarterly loss of $0.10 per share, missing forecasts of $0.17 in earnings, despite revenue of $147.71 million beating the $134.80 million estimate.
• Analyst sentiment remained cautious: Truist and UBS cut their price targets, and MarketBeat reported an average rating of “Reduce,” with an average target price of $5.75.

James River Group Holdings, Ltd. (NASDAQ:JRVR - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Monday after the company announced weaker than expected quarterly earnings. The stock has a 50 day moving average of $3.79 and traded as low as $3.75. James River Group shares last traded at $3.77, with a volume of 290,420 shares.

The insurance provider reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of $0.17 by ($0.27). James River Group had a net margin of 4.68% and a return on equity of 9.93%. The company had revenue of $147.71 million during the quarter, compared to analyst estimates of $134.80 million.

Analysts Set New Price Targets

Several research firms have weighed in on JRVR. Truist Financial reduced their target price on James River Group from $6.00 to $5.00 and set a "hold" rating on the stock in a report on Wednesday, August 12th. Weiss Ratings upgraded James River Group from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. Finally, UBS Group lowered their price target on James River Group from $4.75 to $4.00 and set a "neutral" rating for the company in a research note on Monday, August 17th. Six investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, James River Group presently has an average rating of "Reduce" and an average target price of $5.75.

Hedge Funds Weigh In On James River Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. Donald Smith & CO. Inc. acquired a new stake in James River Group during the 2nd quarter worth $10,738,000. RBF Capital LLC grew its stake in James River Group by 7.5% in the first quarter. RBF Capital LLC now owns 1,128,525 shares of the insurance provider's stock valued at $7,110,000 after acquiring an additional 78,525 shares during the period. Dimensional Fund Advisors LP grew its stake in James River Group by 9.5% in the first quarter. Dimensional Fund Advisors LP now owns 845,243 shares of the insurance provider's stock valued at $5,325,000 after acquiring an additional 73,231 shares during the period. Hillsdale Investment Management Inc. increased its holdings in shares of James River Group by 45.5% in the first quarter. Hillsdale Investment Management Inc. now owns 448,860 shares of the insurance provider's stock worth $2,828,000 after acquiring an additional 140,400 shares in the last quarter. Finally, Canal Insurance CO increased its holdings in shares of James River Group by 65.1% in the third quarter. Canal Insurance CO now owns 270,920 shares of the insurance provider's stock worth $929,000 after acquiring an additional 106,849 shares in the last quarter. Institutional investors and hedge funds own 95.21% of the company's stock.

James River Group Stock Performance

The company has a market cap of $174.36 million, a price-to-earnings ratio of 9.92 and a beta of -0.14. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.63 and a quick ratio of 0.63. The stock has a 50-day moving average price of $3.79 and a 200 day moving average price of $4.93.

James River Group Company Profile

James River Group Holdings, Ltd. NASDAQ: JRVR is a specialty insurance holding company headquartered in Hamilton, Bermuda. Through its operating subsidiaries, the company provides commercial casualty insurance and reinsurance products to businesses and other insurance organizations.

The company's operations have included excess and surplus lines insurance, specialty admitted insurance and casualty reinsurance. Its products are designed for risks that may require customized underwriting or coverage that is not readily available through standard commercial insurance markets.

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