Assured Guaranty (NYSE:AGO) Releases Quarterly Earnings Results, Misses Expectations By $0.28 EPS

Assured Guaranty (NYSE:AGO) released its quarterly earnings data on Thursday. The financial services provider reported $1.23 EPS for the quarter, missing the consensus estimate of $1.51 by ($0.28), Zacks reports. Assured Guaranty had a return on equity of 7.07% and a net margin of 37.34%.The business had revenue of $195.00 million during the quarter, compared to the consensus estimate of $205.03 million. During the same quarter in the previous year, the business posted $1.01 earnings per share. Assured Guaranty’s quarterly revenue was down 30.6% compared to the same quarter last year.

Assured Guaranty Stock Performance

NYSE AGO traded down $7.15 during trading hours on Friday, hitting $75.42. 588,355 shares of the company’s stock traded hands, compared to its average volume of 311,513. Assured Guaranty has a 52 week low of $72.76 and a 52 week high of $92.39. The firm has a market capitalization of $3.33 billion, a P/E ratio of 10.06 and a beta of 0.75. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 0.31. The business’s fifty day moving average price is $80.36 and its two-hundred day moving average price is $81.90.

Assured Guaranty Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 2.0%. The ex-dividend date is Thursday, August 20th. Assured Guaranty’s payout ratio is 17.45%.

Wall Street Analysts Forecast Growth

AGO has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods reduced their price target on shares of Assured Guaranty from $103.00 to $101.00 and set an “outperform” rating for the company in a research note on Friday, July 17th. Weiss Ratings cut shares of Assured Guaranty from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday. Wall Street Zen lowered shares of Assured Guaranty from a “hold” rating to a “sell” rating in a research note on Saturday. Roth Capital downgraded Assured Guaranty from a “buy” rating to a “neutral” rating and set a $80.00 price target on the stock. in a research note on Friday, May 8th. Finally, UBS Group raised Assured Guaranty from a “neutral” rating to a “buy” rating and set a $94.00 price objective for the company in a report on Monday, May 18th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $91.67.

Key Assured Guaranty News

Here are the key news stories impacting Assured Guaranty this week:

• Positive Sentiment: Assured Guaranty declared a quarterly dividend of $0.38 per share, payable September 3 to shareholders of record August 20. The dividend represents an annualized yield of approximately 1.8%, providing ongoing shareholder income. Assured Guaranty dividend announcement
• Neutral Sentiment: The company posted updated investor materials and disclosures on August 7. No specific financial change or new guidance was identified in the announcement, so the immediate stock impact appears limited. Updated investor materials and disclosures
• Negative Sentiment: Second-quarter earnings were $1.23 per share, below consensus estimates ranging from $1.51 to $1.66. Although EPS increased from $1.01 a year earlier, the earnings miss is likely weighing on investor sentiment. Assured Guaranty Q2 earnings miss
• Negative Sentiment: Quarterly revenue was $195 million, below the approximately $205 million consensus estimate and down 30.6% year over year. The revenue shortfall, combined with the EPS miss, is the primary catalyst behind the stock’s decline. Assured Guaranty Q2 earnings snapshot Assured Guaranty revenue estimate miss

Insiders Place Their Bets

In related news, major shareholder Guaranty Ltd Assured acquired 209,388 shares of Assured Guaranty stock in a transaction dated Wednesday, July 22nd. The stock was purchased at an average cost of $24.83 per share, for a total transaction of $5,199,104.04. Following the purchase, the insider directly owned 1,212,106 shares of the company’s stock, valued at approximately $30,096,591.98. This trade represents a 20.88% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Robert Bailenson sold 50,000 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $78.62, for a total value of $3,931,000.00. Following the completion of the sale, the chief operating officer owned 256,251 shares of the company’s stock, valued at $20,146,453.62. This trade represents a 16.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 5.70% of the company’s stock.

Institutional Trading of Assured Guaranty

A number of hedge funds and other institutional investors have recently bought and sold shares of AGO. Global Retirement Partners LLC lifted its position in shares of Assured Guaranty by 633.9% during the 4th quarter. Global Retirement Partners LLC now owns 455 shares of the financial services provider’s stock valued at $41,000 after buying an additional 393 shares in the last quarter. Quarry LP bought a new position in shares of Assured Guaranty during the 3rd quarter valued at approximately $44,000. Danske Bank A S purchased a new stake in Assured Guaranty in the 3rd quarter worth approximately $68,000. EverSource Wealth Advisors LLC raised its stake in Assured Guaranty by 99.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 868 shares of the financial services provider’s stock worth $76,000 after acquiring an additional 433 shares during the period. Finally, Aster Capital Management DIFC Ltd lifted its holdings in Assured Guaranty by 121.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,342 shares of the financial services provider’s stock valued at $121,000 after purchasing an additional 735 shares in the last quarter. Hedge funds and other institutional investors own 92.22% of the company’s stock.

About Assured Guaranty

Assured Guaranty Ltd is a Bermuda-domiciled provider of financial guaranty insurance and reinsurance products serving public finance, infrastructure and structured finance markets. The company’s primary business activity is credit enhancement, whereby it guarantees the timely payment of principal and interest on debt obligations issued by municipal and infrastructure entities. By combining rigorous risk assessment with active portfolio management, Assured Guaranty helps issuers access capital at more attractive rates while protecting investors against credit events.

In its public finance segment, the company underwrites municipal bond insurance for state and local governments, public-private partnerships and essential infrastructure projects.