Home Sectors Financial Services Stock Watch: Reinsurance Group Of America (NYSE: RGA)

Stock Watch: Reinsurance Group Of America (NYSE: RGA)

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Reinsurance Group Of America is part of the financial services sector and is in the specialty insurance industry. The company CEO is Anna Manning. Reinsurance Group of America Inc is an insurance holding company. It provides various products including life reinsurance, living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, and product development.

Previous Intraday Trading Performance:

The RGA stock showed a previous change of 0.37% with an open at 151.00 and a close of 150.23. It reached an intraday high of 151.00 and a low of 148.63.

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Liquidity:

The stock has a market cap of $9.4b with 62.5m shares outstanding, of which the float is 61.8m shares. Trading volume reached 329,220 shares compared to its average volume of 259,103 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Reinsurance Group Of America shares returned 0.70% and in the past 30 trading days it returned 0.35%. Over three months, it changed 3.71%. In one year it has changed 1.18% and within that year its 52-week high was 153.61 and its 52-week low was 127.84. RGA stock is 17.51% above its 52 Week Low.

Our calculations show a 200 day moving average of 143.25 and a 50 day moving average of 147.51. Currently RGA stock is trading 4.87% above its 200 day moving average and may be a good opportunity to buy.

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Earnings:

The last annual fiscal EPS for the company was reported at 11.03 that ended on 31st of December 2018, which according to the previous close, that is a PE of 13.62. Based on 2 analyst estimates, the consensus EPS for the next quarter is 2.69. The TTM EPS is 12.20, which comes to a TTM PE of 12.31. Historically, the PE high was 17.40 and the PE low was 4.60. If the stock reached its PE low, that would represent a price of 56.14, which is a decrease of -62.63%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/29/2019): 2.65
4thQtr of 2018 (Reported on 01/28/2019): 1.72
3rdQtr of 2018 (Reported on 10/25/2018): 4.68
2ndQtr of 2018 (Reported on 07/26/2018): 3.13
1stQtr of 2018 (Reported on 04/26/2018): 1.52

The dividend per share is currently 2.40, which is a dividend yield of 1.60%. Also, the payout ratio is 19.67%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 200.18, which means it is possibly undervalued and has a margin of safety of 24.95%.

Indicators to Watch:

Short-interest was 880,151, which was 1.41% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.11. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.66.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 8.78%, return on assets is 1.28%, profit margin is 6.02%, price-to-sales is 0.71 and price-to-book is 0.97.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 2  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.