Beazley (LON:BEZ) Shares Up 40.5% – Here’s Why

Beazley plc (LON:BEZ)’s share price rose 40.5% during trading on Monday . The company traded as high as GBX 1,195 and last traded at GBX 1,152.45. Approximately 15,440,655 shares were traded during mid-day trading, an increase of 107% from the average daily volume of 7,449,580 shares. The stock had previously closed at GBX 820.

Beazley News Summary

Here are the key news stories impacting Beazley this week:

• Positive Sentiment: Unsolicited all?cash approach from Zurich prompted takeover speculation and a re?rating of the stock; investors are pricing a potential control premium. Beazley Rejects Initial Zurich Approach as Takeover Talks Loom
• Positive Sentiment: Trading volume spiked well above average and the share price moved toward its 1?year high, accelerating momentum; low reported P/E (~7.6) makes an acquisition bid more plausible from an acquiror’s perspective.
• Neutral Sentiment: Beazley publicly described the approach as unsolicited, non?binding and conditional and said the board rejected the initial approach — the announcement creates more information flow but does not guarantee a deal. Beazley Rejects Initial Zurich Approach as Takeover Talks Loom
• Negative Sentiment: Initial rejection and the conditional/non?binding nature of the approach mean outcomes are uncertain — negotiations could stall, a bid may not emerge, or regulatory/finance hurdles could limit deal terms, leaving shares exposed to a pullback if no firm bid materializes.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Royal Bank Of Canada lifted their target price on shares of Beazley from GBX 1,000 to GBX 1,100 and gave the stock an “outperform” rating in a research note on Tuesday, October 14th. JPMorgan Chase & Co. lowered their price objective on shares of Beazley from GBX 1,050 to GBX 1,025 and set an “overweight” rating for the company in a research note on Wednesday, November 26th. Peel Hunt reissued an “add” rating and set a GBX 900 price objective on shares of Beazley in a report on Tuesday, November 25th. Jefferies Financial Group raised their target price on Beazley from GBX 1,000 to GBX 1,040 and gave the stock a “buy” rating in a research note on Wednesday, November 12th. Finally, Berenberg Bank lowered their price target on Beazley from GBX 1,150 to GBX 1,100 and set a “buy” rating for the company in a research report on Wednesday, November 26th. Five equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Beazley currently has a consensus rating of “Buy” and a consensus price target of GBX 1,033.

Beazley Price Performance

The firm has a fifty day moving average of GBX 829.24 and a 200 day moving average of GBX 855.62. The stock has a market capitalization of £6.79 billion, a price-to-earnings ratio of 7.63, a price-to-earnings-growth ratio of 1.57 and a beta of 0.68.

About Beazley

Beazley plc provides risk insurance and reinsurance solutions in the United States, the United Kingdom, rest of Europe, and internationally. It operates through Cyber Risks, Digital, MAP Risks, Property Risks, and Specialty Risks segments. The Cyber Risk segment underwrites cyber and technology risks. The Digital segment underwrites various marine, contingency, and SME liability risks through digital channels, such as e-trading platforms and broker portals. The MAP Risks segment underwrites marine, portfolio underwriting and political, and contingency business.