RenaissanceRe Holdings Ltd. (NYSE:RNR) to Issue $0.40 Quarterly Dividend

Key Points

• RenaissanceRe Holdings Ltd. declared a quarterly dividend of $0.40 per share, with an ex-dividend date of September 15th, reflecting an annual yield of 0.7%.
• The company's recent quarterly earnings surpassed expectations, reporting $12.29 EPS, compared to a consensus estimate of $10.28, though revenue was down 2.4% year-over-year.
• RenaissanceRe's dividend payout ratio is low at 4.4%, indicating that future dividends are well-supported by anticipated earnings, projected at $38.87 per share for the next year.

RenaissanceRe Holdings Ltd. (NYSE:RNR - Get Free Report) announced a quarterly dividend on Thursday, July 31st, Wall Street Journal reports. Stockholders of record on Monday, September 15th will be paid a dividend of 0.40 per share by the insurance provider on Tuesday, September 30th. This represents a c) annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 15th.

RenaissanceRe has a payout ratio of 4.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect RenaissanceRe to earn $38.87 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 4.1%.

RenaissanceRe Trading Up 0.5%

Shares of NYSE RNR traded up $1.24 during mid-day trading on Monday, hitting $243.07. 28,413 shares of the company traded hands, compared to its average volume of 495,400. RenaissanceRe has a 1 year low of $219.00 and a 1 year high of $300.00. The stock has a market capitalization of $11.44 billion, a price-to-earnings ratio of 6.21, a PEG ratio of 2.48 and a beta of 0.29. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.23. The business has a 50 day moving average of $242.40 and a two-hundred day moving average of $240.99.

RenaissanceRe (NYSE:RNR - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The insurance provider reported $12.29 EPS for the quarter, beating the consensus estimate of $10.28 by $2.01. RenaissanceRe had a return on equity of 15.00% and a net margin of 15.44%. The business had revenue of $2.77 billion during the quarter, compared to the consensus estimate of $2.96 billion. During the same period in the prior year, the business posted $12.41 earnings per share. RenaissanceRe's revenue was down 2.4% compared to the same quarter last year. On average, sell-side analysts anticipate that RenaissanceRe will post 26.04 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on RNR. Barclays upped their target price on RenaissanceRe from $256.00 to $273.00 and gave the company an "equal weight" rating in a report on Thursday, July 24th. JPMorgan Chase & Co. raised RenaissanceRe from a "neutral" rating to an "overweight" rating and set a $284.00 price target on the stock in a research report on Tuesday, April 8th. Jefferies Financial Group dropped their price target on RenaissanceRe from $266.00 to $265.00 and set a "hold" rating on the stock in a research report on Friday, April 11th. JMP Securities reissued a "market perform" rating on shares of RenaissanceRe in a research report on Thursday, April 24th. Finally, Wells Fargo & Company reissued an "equal weight" rating and set a $269.00 price target (up from $267.00) on shares of RenaissanceRe in a research report on Thursday, July 10th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $287.50.

RenaissanceRe Company Profile

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S.