Everest Group (NYSE:EG) Shares Gap Down on Disappointing Earnings

Everest Group, Ltd. (NYSE:EG)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $358.83, but opened at $325.00. Everest Group shares last traded at $345.25, with a volume of 41,642 shares.

The company reported $6.45 earnings per share for the quarter, missing the consensus estimate of $7.46 by ($1.01). The business had revenue of $4.26 billion during the quarter, compared to the consensus estimate of $3.89 billion. Everest Group had a return on equity of 9.04% and a net margin of 7.95%. Everest Group’s revenue for the quarter was up 3.1% on a year-over-year basis. During the same quarter last year, the company earned $16.32 EPS.

Everest Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 28th. Stockholders of record on Monday, March 17th were given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.30%. The ex-dividend date of this dividend was Monday, March 17th. Everest Group’s payout ratio is 25.47%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. UBS Group cut their price target on Everest Group from $375.00 to $372.00 and set a “neutral” rating for the company in a report on Wednesday, April 9th. Morgan Stanley reaffirmed an “equal weight” rating and set a $340.00 price target (down previously from $425.00) on shares of Everest Group in a report on Wednesday, February 5th. Wells Fargo & Company reduced their price objective on shares of Everest Group from $370.00 to $362.00 and set an “equal weight” rating for the company in a research note on Thursday, April 10th. BMO Capital Markets cut shares of Everest Group from an “outperform” rating to a “market perform” rating and lowered their target price for the company from $453.00 to $375.00 in a research note on Thursday, January 30th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Everest Group from $434.00 to $402.00 and set an “outperform” rating for the company in a report on Wednesday, April 9th. Six equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Everest Group presently has a consensus rating of “Hold” and an average price target of $396.00.

Insider Activity at Everest Group

In related news, Director Geraldine Losquadro sold 1,500 shares of Everest Group stock in a transaction dated Tuesday, March 18th. The stock was sold at an average price of $360.63, for a total value of $540,945.00. Following the completion of the transaction, the director now owns 12,279 shares in the company, valued at approximately $4,428,175.77. This trade represents a 10.89 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 1.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Everest Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in Everest Group by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 5,560,030 shares of the company’s stock worth $2,015,288,000 after buying an additional 43,793 shares during the period. Norges Bank purchased a new position in shares of Everest Group during the 4th quarter worth about $488,588,000. Franklin Resources Inc. grew its holdings in Everest Group by 0.4% during the 4th quarter. Franklin Resources Inc. now owns 1,281,611 shares of the company’s stock valued at $464,533,000 after purchasing an additional 4,544 shares during the last quarter. Geode Capital Management LLC raised its position in Everest Group by 0.7% in the 4th quarter. Geode Capital Management LLC now owns 1,164,081 shares of the company’s stock worth $424,344,000 after purchasing an additional 8,321 shares during the period. Finally, Vulcan Value Partners LLC lifted its stake in Everest Group by 279.1% in the fourth quarter. Vulcan Value Partners LLC now owns 978,713 shares of the company’s stock worth $354,768,000 after purchasing an additional 720,572 shares during the last quarter. Hedge funds and other institutional investors own 92.64% of the company’s stock.

Everest Group Stock Up 3.2 %

The firm has a market cap of $16.64 billion, a PE ratio of 11.08, a price-to-earnings-growth ratio of 0.24 and a beta of 0.43. The company has a 50-day simple moving average of $353.32 and a 200-day simple moving average of $359.57. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.40 and a quick ratio of 0.40.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom.