Reinsurance Group of America (NYSE:RGA) Hits New 1-Year High on Better-Than-Expected Earnings

Reinsurance Group of America, Incorporated (NYSE:RGA) shares hit a new 52-week high on Friday following a stronger than expected earnings report. The company traded as high as $246.77 and last traded at $240.6670, with a volume of 24518 shares. The stock had previously closed at $236.31.

The insurance provider reported $8.89 EPS for the quarter, topping analysts’ consensus estimates of $6.50 by $2.39. The business 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 13.16% and a net margin of 4.92%.The business’s revenue for the quarter was up 18.5% on a year-over-year basis. During the same period in the prior year, the firm posted $4.72 EPS.

Reinsurance Group of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be paid a dividend of $0.98 per share. This is a boost from Reinsurance Group of America’s previous quarterly dividend of $0.93. This represents a $3.92 annualized dividend and a yield of 1.6%. The ex-dividend date is Tuesday, August 18th. Reinsurance Group of America’s payout ratio is currently 20.15%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on RGA. Evercore reiterated an “outperform” rating and set a $267.00 target price on shares of Reinsurance Group of America in a report on Monday, May 18th. JPMorgan Chase & Co. boosted their price objective on shares of Reinsurance Group of America from $270.00 to $286.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. TD Cowen raised their target price on shares of Reinsurance Group of America from $212.00 to $235.00 and gave the company a “hold” rating in a research note on Wednesday, July 22nd. Wells Fargo & Company upped their price target on shares of 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. Finally, Piper Sandler lowered their price target on Reinsurance Group of America from $263.00 to $261.00 and set an “overweight” rating for the company in a report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Reinsurance Group of America has an average rating of “Moderate Buy” and a consensus price target of $256.33.

Insider Activity at Reinsurance Group of America

In other news, EVP Ronald Herrmann sold 7,000 shares of Reinsurance Group of America stock in a transaction that occurred on Thursday, May 14th. The shares were 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 trade represents a 64.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP John W. Hayden sold 414 shares of Reinsurance Group of America stock in a transaction that occurred on 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 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 company insiders.

Institutional Investors Weigh In On Reinsurance Group of America

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Activest Wealth Management acquired a new position in Reinsurance Group of America in the 4th quarter worth $30,000. Tobam grew its stake in shares of Reinsurance Group of America by 244.7% during the fourth quarter. Tobam now owns 162 shares of the insurance provider’s stock valued at $33,000 after acquiring an additional 115 shares in the last quarter. International Assets Investment Management LLC purchased a new stake in shares of Reinsurance Group of America during the fourth quarter worth about $35,000. Advisory Services Network LLC purchased a new stake in shares of Reinsurance Group of America during the third quarter worth about $38,000. Finally, Entrust Financial LLC acquired a new position in shares of Reinsurance Group of America in the fourth quarter worth about $40,000. Hedge funds and other institutional investors own 95.11% of the company’s stock.

Reinsurance Group of America Stock Performance

The firm has a market cap of $15.88 billion, a price-to-earnings ratio of 13.10 and a beta of 0.47. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.46. The company has a 50 day moving average of $221.48 and a 200 day moving average of $213.29.

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.