W.R. Berkley Corporation (NYSE:WRB) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analysts are cautious on WRB: W.R. Berkley has a consensus rating of “Reduce” from 18 analysts, with most ratings at hold and a few sell recommendations. The average 12-month price target is about $68.81.
• Recent earnings beat expectations: The company reported $1.30 EPS versus the $1.13 estimate and posted revenue of $3.69 billion, also above forecasts. Quarterly revenue rose 1.3% year over year, and analysts expect full-year EPS of 4.64.
• Stock and ownership details: WRB opened at $65.68, near its 52-week low of $63.67, with a market cap of $24.45 billion. Insider and institutional ownership remains significant, with insiders holding 23.3% and institutions owning 68.82% of shares.

Shares of W.R. Berkley Corporation (NYSE:WRB - Get Free Report) have received a consensus recommendation of "Reduce" from the eighteen analysts that are covering the firm, Marketbeat reports. Three analysts have rated the stock with a sell recommendation, thirteen have issued a hold recommendation and two have given a buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $68.8125.

A number of equities analysts have recently commented on the company. Wall Street Zen upgraded W.R. Berkley from a "sell" rating to a "hold" rating in a research note on Saturday, April 25th. Bank of America lowered their target price on W.R. Berkley from $68.00 to $67.00 and set a "neutral" rating on the stock in a report on Tuesday, April 14th. Keefe, Bruyette & Woods dropped their price target on W.R. Berkley from $74.00 to $66.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 1st. Barclays upped their price target on W.R. Berkley from $62.00 to $64.00 and gave the stock an "underweight" rating in a report on Wednesday, April 22nd. Finally, Evercore reissued an "underperform" rating on shares of W.R. Berkley in a research report on Monday, March 9th.

W.R. Berkley Price Performance

NYSE WRB opened at $65.68 on Friday. W.R. Berkley has a 1 year low of $63.67 and a 1 year high of $78.96. The company has a fifty day simple moving average of $67.37 and a 200 day simple moving average of $70.00. The company has a current ratio of 0.36, a quick ratio of 0.37 and a debt-to-equity ratio of 0.29. The company has a market cap of $24.45 billion, a P/E ratio of 13.91, a P/E/G ratio of 3.13 and a beta of 0.33.

W.R. Berkley (NYSE:WRB - Get Free Report) last announced its earnings results on Tuesday, April 21st. The insurance provider reported $1.30 EPS for the quarter, topping the consensus estimate of $1.13 by $0.17. W.R. Berkley had a net margin of 12.64% and a return on equity of 18.92%. The firm had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.18 billion. During the same quarter last year, the firm posted $1.01 EPS. The business's quarterly revenue was up 1.3% on a year-over-year basis. On average, sell-side analysts predict that W.R. Berkley will post 4.64 EPS for the current year.

W.R. Berkley Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 4th. Shareholders of record on Monday, February 23rd were issued a $0.09 dividend. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $0.36 dividend on an annualized basis and a yield of 0.5%. W.R. Berkley's dividend payout ratio is 7.63%.

Insider Transactions at W.R. Berkley

In related news, major shareholder Sumitomo Insurance Co L. Mitsui acquired 112,176 shares of the company's stock in a transaction dated Tuesday, March 3rd. The shares were bought at an average price of $72.20 per share, for a total transaction of $8,099,107.20. Following the acquisition, the insider owned 58,780,450 shares in the company, valued at $4,243,948,490. This trade represents a 0.19% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders have acquired 2,301,794 shares of company stock valued at $163,798,160. Company insiders own 23.30% of the company's stock.

Institutional Investors Weigh In On W.R. Berkley

Several hedge funds have recently made changes to their positions in the stock. Johnson Financial Group Inc. increased its stake 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 valued at $58,000 after acquiring an additional 138 shares during the period. Maridea Wealth Management LLC grew its holdings in shares of W.R. Berkley by 2.0% during the 3rd quarter. Maridea Wealth Management LLC now owns 7,180 shares of the insurance provider's stock worth $528,000 after purchasing an additional 141 shares in the last quarter. Inspire Advisors LLC grew its holdings in shares of W.R. Berkley by 1.0% during the 4th quarter. Inspire Advisors LLC now owns 14,364 shares of the insurance provider's stock worth $1,007,000 after purchasing an additional 144 shares in the last quarter. Physician Wealth Advisors Inc. increased its position in shares of W.R. Berkley by 40.2% during the third quarter. Physician Wealth Advisors Inc. now owns 523 shares of the insurance provider's stock valued at $40,000 after purchasing an additional 150 shares during the period. Finally, Valeo Financial Advisors LLC increased its position in shares of 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 valued at $367,000 after purchasing an additional 151 shares during the period. Institutional investors own 68.82% of the company's stock.

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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