Reinsurance Group of America (NYSE:RGA) Sets New 12-Month High – Still a Buy?

Reinsurance Group of America, Incorporated (NYSE:RGA)’s share price hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $244.30 and last traded at $241.0450, with a volume of 353864 shares changing hands. The stock had previously closed at $241.79.

Wall Street Analyst Weigh In

RGA has been the topic of a number of research reports. Evercore reaffirmed an “outperform” rating and issued a $267.00 price objective on shares of Reinsurance Group of America in a report on Monday, May 18th. Barclays upped their target price on Reinsurance Group of America from $268.00 to $278.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. JPMorgan Chase & Co. lifted their price target on shares of Reinsurance Group of America from $264.00 to $270.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Reinsurance Group of America in a report on Wednesday, May 13th. Finally, Piper Sandler dropped their price target on shares of Reinsurance Group of America from $263.00 to $261.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Seven investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $255.50.

Reinsurance Group of America Price Performance

The firm has a market capitalization of $15.89 billion, a price-to-earnings ratio of 13.14 and a beta of 0.47. The business’s fifty day simple moving average is $213.97 and its 200 day simple moving average is $209.68. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.14 and a quick ratio of 0.14.

Reinsurance Group of America (NYSE:RGA) last announced its quarterly earnings results on Thursday, May 7th. The insurance provider reported $6.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.03 by $0.94. Reinsurance Group of America had a return on equity of 13.16% and a net margin of 4.92%.The business had revenue of $6.49 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the company earned $5.66 earnings per share. The company’s quarterly revenue was up 23.5% on a year-over-year basis. On average, research analysts forecast that Reinsurance Group of America, Incorporated will post 26.86 EPS for the current year.

Reinsurance Group of America Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were issued a $0.93 dividend. This represents a $3.72 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Tuesday, May 19th. Reinsurance Group of America’s dividend payout ratio is currently 20.15%.

Insider Buying and Selling

In related news, EVP Ronald Herrmann sold 7,000 shares of Reinsurance Group of America stock in a transaction that occurred on 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 transaction, the executive vice president owned 3,938 shares of the company’s stock, valued at $829,264.04. The trade was a 64.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP John W. Hayden sold 414 shares of Reinsurance Group of America stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $214.95, for a total transaction of $88,989.30. Following the transaction, the executive vice president directly owned 20,949 shares in the company, valued at $4,502,987.55. This represents a 1.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.60% of the stock is owned by company insiders.

Institutional Trading of Reinsurance Group of America

A number of large investors have recently added to or reduced their stakes in the stock. WCM Investment Management LLC raised its holdings in shares of Reinsurance Group of America by 3.0% in the 1st quarter. WCM Investment Management LLC now owns 2,830,620 shares of the insurance provider’s stock worth $566,803,000 after purchasing an additional 82,681 shares during the period. State Street Corp boosted its stake in Reinsurance Group of America by 2.8% during the third quarter. State Street Corp now owns 2,346,447 shares of the insurance provider’s stock valued at $450,823,000 after buying an additional 64,296 shares during the period. AQR Capital Management LLC increased its position in shares of Reinsurance Group of America by 148.4% in the fourth quarter. AQR Capital Management LLC now owns 1,652,102 shares of the insurance provider’s stock worth $336,137,000 after purchasing an additional 987,014 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Reinsurance Group of America by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 1,341,364 shares of the insurance provider’s stock valued at $272,966,000 after buying an additional 12,682 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Reinsurance Group of America by 1.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,114,998 shares of the insurance provider’s stock worth $227,624,000 after purchasing an additional 15,372 shares during the last quarter. Hedge funds and other institutional investors own 95.11% of the company’s stock.

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.