W.R. Berkley Corporation (NYSE:WRB) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Consensus "Reduce": Eighteen analysts cover WRB with a consensus rating of Reduce (4 sell, 11 hold, 3 buy) and an average 1‑year target of $68.75, with several firms cutting price targets and TD Cowen downgrading to sell with a $55 target.
• Shares opened at $65.96 and trade below both the 50‑day ($68.57) and 200‑day ($71.05) moving averages; the stock has a P/E of 14.82 and a market cap of about $24.7 billion, with a 52‑week range of $63.67–$78.96.
• Recent fundamentals: Q1 EPS was $1.13 (missed by $0.01) on $3.18B revenue (flat YoY) with a 18.17% ROE; the company pays a small dividend (annualized yield ~0.5%) and insiders — including Sumitomo Mitsui — have recently increased holdings (insiders own ~23%).

W.R. Berkley Corporation (NYSE:WRB - Get Free Report) has received a consensus recommendation of "Reduce" from the eighteen ratings firms that are covering the firm, MarketBeat reports. Four research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $68.75.

A number of analysts have recently issued reports on WRB shares. Morgan Stanley lowered their price objective on shares of W.R. Berkley from $73.00 to $72.00 and set an "equal weight" rating on the stock in a report on Monday, April 6th. Jefferies Financial Group lowered their price objective on shares of W.R. Berkley from $75.00 to $70.00 and set a "hold" rating on the stock in a report on Tuesday, January 27th. TD Cowen downgraded shares of W.R. Berkley from a "buy" rating to a "sell" rating and lowered their price objective for the company from $77.00 to $55.00 in a report on Tuesday, January 20th. Brean Capital downgraded shares of W.R. Berkley from a "buy" rating to a "neutral" rating and set a $73.00 price objective on the stock. in a report on Wednesday, March 25th. Finally, Argus lowered their price objective on shares of W.R. Berkley from $82.00 to $76.00 and set a "buy" rating on the stock in a report on Monday, February 2nd.

W.R. Berkley Stock Performance

Shares of WRB stock opened at $65.96 on Wednesday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.37 and a current ratio of 0.37. The company has a market capitalization of $24.70 billion, a P/E ratio of 14.82, a price-to-earnings-growth ratio of 2.62 and a beta of 0.37. The company's 50 day moving average price is $68.57 and its two-hundred day moving average price is $71.05. W.R. Berkley has a 52 week low of $63.67 and a 52 week high of $78.96.

W.R. Berkley (NYSE:WRB - Get Free Report) last announced its earnings results on Monday, January 26th. The insurance provider reported $1.13 EPS for the quarter, missing the consensus estimate of $1.14 by ($0.01). W.R. Berkley had a return on equity of 18.17% and a net margin of 12.10%.The company had revenue of $3.18 billion for the quarter, compared to analyst estimates of $3.18 billion. During the same quarter last year, the business posted $1.13 earnings per share. The business's quarterly revenue was up 2.1% on a year-over-year basis. On average, analysts expect that W.R. Berkley will post 4.33 earnings per share for the current fiscal year.

W.R. Berkley Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 4th. Stockholders of record on Monday, February 23rd were issued a $0.09 dividend. The ex-dividend date was Monday, February 23rd. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.5%. W.R. Berkley's dividend payout ratio (DPR) is 8.09%.

Insider Activity

In other W.R. Berkley news, major shareholder Sumitomo Insurance Co L. Mitsui acquired 112,176 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were bought at an average cost of $72.20 per share, for a total transaction of $8,099,107.20. Following the completion of the acquisition, the insider directly owned 58,780,450 shares of the company's stock, valued at approximately $4,243,948,490. This trade represents a 0.19% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have purchased 6,013,946 shares of company stock valued at $415,217,738 in the last 90 days. 23.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On W.R. Berkley

A number of institutional investors have recently added to or reduced their stakes in the company. Johnson Financial Group Inc. increased its holdings in W.R. Berkley by 22.3% during the third quarter. Johnson Financial Group Inc. now owns 756 shares of the insurance provider's stock worth $58,000 after buying an additional 138 shares during the last quarter. Maridea Wealth Management LLC increased its holdings in W.R. Berkley by 2.0% during the third quarter. Maridea Wealth Management LLC now owns 7,180 shares of the insurance provider's stock worth $528,000 after buying an additional 141 shares during the last quarter. Inspire Advisors LLC increased its holdings in W.R. Berkley by 1.0% during the fourth quarter. Inspire Advisors LLC now owns 14,364 shares of the insurance provider's stock worth $1,007,000 after buying an additional 144 shares during the last quarter. Physician Wealth Advisors Inc. increased its holdings in W.R. Berkley by 40.2% during the third quarter. Physician Wealth Advisors Inc. now owns 523 shares of the insurance provider's stock worth $40,000 after buying an additional 150 shares during the last quarter. Finally, Valeo Financial Advisors LLC increased its holdings in W.R. Berkley by 3.3% during the third quarter. Valeo Financial Advisors LLC now owns 4,788 shares of the insurance provider's stock worth $367,000 after buying an additional 151 shares during the last quarter. 68.82% of the stock is currently owned by institutional investors and hedge funds.

About W.R. Berkley

W. R. Berkley Corporation NYSE: WRB is a publicly traded insurance holding company that underwrites and sells commercial property and casualty insurance, specialty insurance products, and reinsurance. Headquartered in Greenwich, Connecticut, the company operates a portfolio of underwriting businesses that focus on niche and specialty commercial risks, offering coverage tailored to industries such as transportation, construction, professional services and other commercial lines.

The company's product mix includes primary and excess casualty, property, professional liability, environmental and other specialty lines, together with treaty and facultative reinsurance solutions.

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