ProAssurance (NYSE:PRA) Shares Gap Up Following Better-Than-Expected Earnings

ProAssurance Co. (NYSE:PRA)’s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $14.11, but opened at $15.12. ProAssurance shares last traded at $15.66, with a volume of 51,076 shares trading hands.

The insurance provider reported $0.36 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.19. The company had revenue of $287.52 million during the quarter, compared to analysts’ expectations of $274.56 million. ProAssurance had a return on equity of 2.65% and a net margin of 3.71%.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on PRA. Piper Sandler lowered shares of ProAssurance from an “overweight” rating to a “neutral” rating and set a $18.00 target price on the stock. in a research report on Monday, November 11th. Truist Financial increased their price objective on ProAssurance from $14.00 to $18.00 and gave the company a “hold” rating in a research note on Tuesday, November 12th. Finally, StockNews.com raised shares of ProAssurance from a “hold” rating to a “buy” rating in a research note on Thursday, December 26th.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Sterling Capital Management LLC lifted its position in ProAssurance by 859.4% in the fourth quarter. Sterling Capital Management LLC now owns 1,631 shares of the insurance provider’s stock valued at $26,000 after buying an additional 1,461 shares during the last quarter. KBC Group NV grew its stake in shares of ProAssurance by 75.4% in the fourth quarter. KBC Group NV now owns 4,184 shares of the insurance provider’s stock valued at $67,000 after buying an additional 1,798 shares in the last quarter. Aquatic Capital Management LLC raised its holdings in shares of ProAssurance by 148.6% in the 4th quarter. Aquatic Capital Management LLC now owns 6,214 shares of the insurance provider’s stock valued at $99,000 after buying an additional 3,714 shares during the period. Point72 Asia Singapore Pte. Ltd. grew its position in ProAssurance by 94.3% in the 3rd quarter. Point72 Asia Singapore Pte. Ltd. now owns 8,347 shares of the insurance provider’s stock valued at $126,000 after acquiring an additional 4,052 shares in the last quarter. Finally, KLP Kapitalforvaltning AS purchased a new stake in ProAssurance during the fourth quarter worth about $150,000. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

ProAssurance Price Performance

The company has a market cap of $802.07 million, a PE ratio of 18.88 and a beta of 0.27. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.28 and a current ratio of 0.28. The company’s 50-day simple moving average is $15.14 and its 200 day simple moving average is $15.03.

About ProAssurance

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers’ Compensation Insurance, and Segregated Portfolio Cell Reinsurance segments. It offers professional liability insurance to healthcare providers and institutions, and attorneys and their firms; medical technology liability insurance to medical technology and life sciences companies; and custom alternative risk solutions, including assumed reinsurance, loss portfolio transfers, and captive cell programs for healthcare professional liability insureds.