Reinsurance Group of America, Incorporated (NYSE:RGA) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Reinsurance Group of America, with seven buy ratings, one strong buy, two holds and one sell. The average 12-month price target is $257.11.
• RGA reported quarterly earnings of $8.89 per share, exceeding estimates of $6.50, while revenue rose 18.5% year over year to $6.64 billion.
• The company raised its quarterly dividend from $0.93 to $0.98 per share, implying an annualized dividend of $3.92 and a 1.6% yield.

Reinsurance Group of America, Incorporated (NYSE:RGA - Get Free Report) has been given an average rating of "Moderate Buy" by the eleven brokerages that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $257.1111.

Several research analysts have recently commented on the stock. Evercore reissued an "outperform" rating and issued a $267.00 price objective on shares of Reinsurance Group of America in a research note on Monday, May 18th. JPMorgan Chase & Co. upped their target price on shares of Reinsurance Group of America from $286.00 to $293.00 and gave the stock an "overweight" rating in a research note on Tuesday. Weiss Ratings reiterated a "buy (b)" rating on shares of Reinsurance Group of America in a report on Wednesday, May 13th. TD Cowen boosted their price target on shares of Reinsurance Group of America from $212.00 to $235.00 and gave the stock a "hold" rating in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company upped their price objective on Reinsurance Group of America from $261.00 to $269.00 and gave the stock an "overweight" rating in a research report on Thursday, July 9th.

Reinsurance Group of America Price Performance

RGA opened at $244.55 on Wednesday. The stock's 50-day moving average price is $224.17 and its 200 day moving average price is $214.35. Reinsurance Group of America has a 12-month low of $178.21 and a 12-month high of $248.13. The firm has a market cap of $15.97 billion, a price-to-earnings ratio of 10.74 and a beta of 0.47. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 0.41.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last released its earnings results on Thursday, August 6th. The insurance provider reported $8.89 earnings per share for the quarter, beating the consensus estimate of $6.50 by $2.39. The company had revenue of $6.64 billion during the quarter, compared to the consensus estimate of $6.67 billion. Reinsurance Group of America had a return on equity of 14.78% and a net margin of 5.81%.Reinsurance Group of America's revenue was up 18.5% compared to the same quarter last year. During the same period in the previous year, the company posted $4.72 EPS. As a group, sell-side analysts expect that Reinsurance Group of America will post 26.84 earnings per share for the current year.

Reinsurance Group of America Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Tuesday, August 18th. This is a positive change from Reinsurance Group of America's previous quarterly dividend of $0.93. Reinsurance Group of America's payout ratio is presently 16.34%.

Insider Activity

In other Reinsurance Group of America news, EVP Ronald Herrmann sold 7,000 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $210.58, for a total transaction of $1,474,060.00. Following the sale, the executive vice president owned 3,938 shares in the company, valued at $829,264.04. This represents a 64.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John W. Hayden sold 414 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $214.95, for a total value of $88,989.30. Following the completion of the sale, the executive vice president directly owned 20,949 shares in the company, valued at $4,502,987.55. This represents a 1.94% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is owned by corporate insiders.

Institutional Trading of Reinsurance Group of America

Hedge funds have recently added to or reduced their stakes in the company. Foster & Motley Inc. purchased a new position in Reinsurance Group of America in the second quarter worth approximately $1,049,000. Bank of New York Mellon Corp purchased a new stake in shares of Reinsurance Group of America in the 2nd quarter valued at approximately $82,836,000. Wedge Capital Management L L P NC raised its holdings in shares of Reinsurance Group of America by 965.2% in the 2nd quarter. Wedge Capital Management L L P NC now owns 179,440 shares of the insurance provider's stock valued at $38,158,000 after purchasing an additional 162,594 shares in the last quarter. Handelsbanken Fonder AB raised its holdings in shares of Reinsurance Group of America by 4.7% in the 2nd quarter. Handelsbanken Fonder AB now owns 17,900 shares of the insurance provider's stock valued at $3,806,000 after purchasing an additional 800 shares in the last quarter. Finally, Elevation Wealth Partners LLC lifted its position in shares of Reinsurance Group of America by 9.5% during the 2nd quarter. Elevation Wealth Partners LLC now owns 702 shares of the insurance provider's stock worth $149,000 after purchasing an additional 61 shares during the last quarter. Institutional investors and hedge funds own 95.11% of the company's stock.

About Reinsurance Group of America

Reinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.

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