Reinsurance Group of America (NYSE:RGA) Reaches New 1-Year High - What's Next?

Key Points

• RGA reached a new 52-week high, trading as high as $268.32, while analysts maintained an overall “Buy” rating and a consensus price target of $268.33.
• The company reported strong quarterly results, with earnings per share of $8.89 versus the $6.50 consensus estimate and revenue growth of 18.5% year over year.
• RGA increased its quarterly dividend to $0.98, equal to an annualized $3.92 payout and a 1.5% yield; institutional investors own approximately 95.11% of the stock.

Reinsurance Group of America, Incorporated (NYSE:RGA - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday. The company traded as high as $268.32 and last traded at $267.0510, with a volume of 405,860 shares traded. The stock had previously closed at $266.75.

Analyst Ratings Changes

A number of research firms have recently commented on RGA. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Reinsurance Group of America in a research note on Friday, August 7th. Wells Fargo & Company increased their price objective on shares of Reinsurance Group of America from $291.00 to $292.00 and gave the stock an "overweight" rating in a research report on Monday, October 12th. JPMorgan Chase & Co. lifted their target price on shares of Reinsurance Group of America from $293.00 to $297.00 and gave the stock an "overweight" rating in a research note on Thursday, October 15th. TD Cowen boosted their target price on shares of Reinsurance Group of America from $212.00 to $235.00 and gave the company a "hold" rating in a report on Wednesday, July 22nd. Finally, Barclays set a $292.00 target price on shares of Reinsurance Group of America in a report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $268.33.

Reinsurance Group of America Stock Up 0.1%

The stock has a market cap of $17.44 billion, a price-to-earnings ratio of 8.90 and a beta of 0.45. The firm's fifty day moving average price is $249.80 and its two-hundred day moving average price is $228.46. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.14 and a quick ratio of 0.14.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last issued its earnings results on Thursday, August 6th. The insurance provider reported $8.89 EPS for the quarter, beating the consensus estimate of $6.50 by $2.39. Reinsurance Group of America had a return on equity of 14.78% and a net margin of 5.81%. The company had revenue of $6.64 billion during the quarter, compared to the consensus estimate of $6.67 billion. During the same period last year, the business posted $4.72 EPS. The firm's revenue for the quarter was up 18.5% compared to the same quarter last year. Sell-side analysts forecast that Reinsurance Group of America, Incorporated will post 29.75 earnings per share for the current fiscal year.

Reinsurance Group of America Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were paid a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 1.5%. This is a boost from Reinsurance Group of America's previous quarterly dividend of $0.93. The ex-dividend date of this dividend was Tuesday, August 18th. Reinsurance Group of America's payout ratio is 17.22%.

Insider Buying and Selling

In other news, EVP Jonathan Porter sold 8,589 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $246.30, for a total transaction of $2,115,470.70. Following the completion of the sale, the executive vice president owned 14,885 shares in the company, valued at $3,666,175.50. The trade was a 36.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On Reinsurance Group of America

A number of institutional investors have recently modified their holdings of the company. Greenleaf Trust grew its stake in Reinsurance Group of America by 2.4% in the 2nd quarter. Greenleaf Trust now owns 1,811 shares of the insurance provider's stock worth $385,000 after acquiring an additional 42 shares in the last quarter. Elevation Wealth Partners LLC raised its stake in shares of Reinsurance Group of America by 9.5% during the second quarter. Elevation Wealth Partners LLC now owns 702 shares of the insurance provider's stock valued at $149,000 after acquiring an additional 61 shares in the last quarter. waypoint wealth counsel raised its stake in shares of Reinsurance Group of America by 6.6% during the first quarter. waypoint wealth counsel now owns 1,098 shares of the insurance provider's stock valued at $224,000 after acquiring an additional 68 shares in the last quarter. Investors Asset Management of Georgia Inc. GA ADV raised its stake in shares of Reinsurance Group of America by 3.4% during the first quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 2,308 shares of the insurance provider's stock valued at $471,000 after acquiring an additional 76 shares in the last quarter. Finally, Parkside Financial Bank & Trust boosted its holdings in shares of Reinsurance Group of America by 5.1% in the second quarter. Parkside Financial Bank & Trust now owns 1,555 shares of the insurance provider's stock valued at $331,000 after purchasing an additional 76 shares during the period. 95.11% of the stock is owned by institutional investors and hedge funds.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated NYSE: RGA is a global provider of life and health reinsurance. The company works with insurance carriers to help them manage mortality, longevity, morbidity and other insurance risks, while supporting the development and distribution of life and health insurance products.

RGA's offerings include traditional life reinsurance, including term, whole life and universal life coverage, as well as health reinsurance and financial solutions. Its financial solutions business provides capital management, asset-intensive reinsurance, longevity and other risk-management arrangements designed to help insurers manage their balance sheets and meet changing customer and regulatory needs.

Founded in 1973 as part of General American Life Insurance Company, RGA became an independent public company in 1993.

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