Reinsurance Group of America (NYSE:RGA) Announces Quarterly Earnings Results, Beats Estimates By $2.39 EPS

Key Points

• RGA reported quarterly EPS of $8.89, beating analysts’ consensus estimate of $6.50 by $2.39. Revenue was $6.64 billion, slightly below expectations of $6.67 billion, while return on equity was 13.16% and net margin was 4.92%.
• Shares traded near $236.51, close to their 52-week high of $245.00. Analysts maintain a “Moderate Buy” consensus, with an average price target of $255.00 and recent upgrades from Barclays and UBS.
• Institutional investors own approximately 95.11% of RGA’s outstanding shares, while company insiders own 0.60%; two executive vice presidents recently sold shares.

Reinsurance Group of America (NYSE:RGA - Get Free Report) issued its quarterly earnings data on Thursday. The insurance provider reported $8.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.50 by $2.39, FiscalAI reports. The firm had revenue of $6.64 billion during the quarter, compared to analysts' expectations of $6.67 billion. Reinsurance Group of America had a return on equity of 13.16% and a net margin of 4.92%.

Reinsurance Group of America Price Performance

Shares of RGA traded up $0.14 during trading hours on Thursday, reaching $236.51. 273,219 shares of the company traded hands, compared to its average volume of 373,142. The stock has a market capitalization of $15.49 billion, a PE ratio of 12.81 and a beta of 0.47. The stock has a fifty day simple moving average of $220.84 and a 200 day simple moving average of $213.00. Reinsurance Group of America has a fifty-two week low of $178.21 and a fifty-two week high of $245.00. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.46.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on RGA shares. Weiss Ratings restated a "buy (b)" rating on shares of Reinsurance Group of America in a research report on Wednesday, May 13th. Barclays increased their price objective on shares of Reinsurance Group of America from $268.00 to $278.00 and gave the company an "overweight" rating in a research note on Tuesday, July 7th. Wall Street Zen upgraded shares of Reinsurance Group of America from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Evercore reaffirmed an "outperform" rating and issued a $267.00 price target on shares of Reinsurance Group of America in a report on Monday, May 18th. Finally, UBS Group upgraded shares of Reinsurance Group of America from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Reinsurance Group of America currently has a consensus rating of "Moderate Buy" and an average price target of $255.00.

Insider Activity

In other Reinsurance Group of America news, EVP John W. Hayden sold 414 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $214.95, for a total transaction of $88,989.30. Following the sale, the executive vice president directly owned 20,949 shares of the company's stock, valued at $4,502,987.55. This trade represents a 1.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Ronald Herrmann sold 7,000 shares of Reinsurance Group of America 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 of the company's stock, valued at approximately $829,264.04. This trade represents a 64.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.60% of the company's stock.

Institutional Trading of Reinsurance Group of America

A number of hedge funds have recently bought and sold shares of RGA. Mercer Global Advisors Inc. ADV grew its position in shares of Reinsurance Group of America by 101.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 16,546 shares of the insurance provider's stock valued at $3,367,000 after purchasing an additional 8,321 shares during the period. Mackenzie Financial Corp lifted its position in Reinsurance Group of America by 9.8% during the fourth quarter. Mackenzie Financial Corp now owns 10,911 shares of the insurance provider's stock worth $2,231,000 after buying an additional 972 shares during the period. NewEdge Advisors LLC boosted its stake in Reinsurance Group of America by 1,841.0% in the 4th quarter. NewEdge Advisors LLC now owns 1,611 shares of the insurance provider's stock worth $328,000 after buying an additional 1,528 shares during the last quarter. Empowered Funds LLC acquired a new stake in Reinsurance Group of America in the 4th quarter worth about $248,000. Finally, XTX Topco Ltd purchased a new stake in Reinsurance Group of America in the 4th quarter valued at about $1,907,000. Institutional investors and hedge funds own 95.11% of the company's stock.

Reinsurance Group of America Company Profile

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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