Reinsurance Group of America (NYSE:RGA) Sets New 1-Year High - Here's Why

Key Points

• Reinsurance Group of America shares reached a new 52-week high of $258.53, supported by a largely positive analyst outlook. The stock has a consensus “Moderate Buy” rating and an average price target of $267.78.
• RGA reported quarterly EPS of $8.89, beating estimates by $2.39, while revenue rose 18.5% year over year to $6.64 billion. Analysts expect full-year EPS of approximately $29.71.
• The company increased its quarterly dividend to $0.98 per share, equivalent to an annualized $3.92 payout and a 1.5% yield. Institutional investors own approximately 95.11% of RGA’s outstanding shares.

Shares of Reinsurance Group of America, Incorporated (NYSE:RGA - Get Free Report) hit a new 52-week high on Thursday. The stock traded as high as $258.53 and last traded at $256.99, with a volume of 310385 shares trading hands. The stock had previously closed at $251.53.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on RGA shares. Wells Fargo & Company boosted their target price on Reinsurance Group of America from $269.00 to $291.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 19th. Barclays set a $292.00 price objective on shares of Reinsurance Group of America in a research note on Thursday. TD Cowen upped their price target on shares of Reinsurance Group of America from $212.00 to $235.00 and gave the company a "hold" rating in a research report on Wednesday, July 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of Reinsurance Group of America in a research note on Friday, August 7th. Finally, Morgan Stanley upgraded shares of Reinsurance Group of America from an "equal weight" rating to an "overweight" rating and set a $295.00 price objective for the company in a report on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $267.78.

Reinsurance Group of America Price Performance

The company has a market capitalization of $16.75 billion, a price-to-earnings ratio of 11.26 and a beta of 0.45. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.41. The stock's 50-day moving average price is $246.22 and its 200-day moving average price is $225.12.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last issued its earnings results on Thursday, August 6th. The insurance provider reported $8.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.50 by $2.39. The company had revenue of $6.64 billion for the quarter, compared to analyst estimates of $6.67 billion. Reinsurance Group of America had a net margin of 5.81% and a return on equity of 14.78%. The company's revenue for the quarter was up 18.5% on a year-over-year basis. During the same quarter last year, the firm earned $4.72 EPS. Equities research analysts anticipate that Reinsurance Group of America, Incorporated will post 29.71 earnings per share for the current year.

Reinsurance Group of America Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th were given a dividend of $0.98 per share. This is an increase from Reinsurance Group of America's previous quarterly dividend of $0.93. This represents a $3.92 dividend on an annualized basis and a dividend yield of 1.5%. 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 at Reinsurance Group of America

In related 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 value of $2,115,470.70. Following the completion of the transaction, the executive vice president directly owned 14,885 shares in the company, valued at approximately $3,666,175.50. The trade was a 36.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Reinsurance Group of America

Several institutional investors have recently added to or reduced their stakes in RGA. SG Americas Securities LLC grew its position in shares of Reinsurance Group of America by 26.5% in the 1st quarter. SG Americas Securities LLC now owns 89,847 shares of the insurance provider's stock valued at $18,343,000 after acquiring an additional 18,826 shares during the period. Interval Partners LP raised its position in shares of Reinsurance Group of America by 186.5% in the 4th quarter. Interval Partners LP now owns 69,739 shares of the insurance provider's stock valued at $14,189,000 after buying an additional 45,399 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Reinsurance Group of America in the second quarter valued at about $1,489,000. WCM Investment Management LLC increased its holdings in shares of Reinsurance Group of America by 3.0% during the first quarter. WCM Investment Management LLC now owns 2,830,620 shares of the insurance provider's stock worth $566,803,000 after buying an additional 82,681 shares in the last quarter. Finally, Engineers Gate Manager LP grew its holdings in Reinsurance Group of America by 26.8% during the 2nd quarter. Engineers Gate Manager LP now owns 25,218 shares of the insurance provider's stock worth $5,363,000 after acquiring an additional 5,331 shares during the last quarter. 95.11% of the stock is owned by institutional investors.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated NYSE: RGA is a global provider of life and health reinsurance. The company helps insurance organizations manage mortality, longevity, morbidity and other insurance risks by assuming portions of their business and providing capital, risk-management expertise and specialized underwriting support.

RGA offers traditional reinsurance and financial solutions for individual life insurance, group life and health coverage, retirement and annuity products, long-term care and disability insurance.

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