RenaissanceRe Holdings Ltd. (NYSE: RNR) Seen Running Too Hot, Let’s Look At This More Closely

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The Vanguard Group, Inc. recently announced the acquisition of new stake in RenaissanceRe Holdings Ltd. (NYSE:RNR). The institutional investor has increased its shareholding in the Financial company by 0.86% to 4.65 million shares with purchase of 39501.0 shares. This fresh investment now brings its stake to 10.55% valued currently at $779.84 million. In addition, SSgA Funds Management, Inc. raised its holdings by 11180.0 to 2.1 million shares. And Capital Research & Management Co…. has lifted its position by 3.92% or 70961.0 shares – to 1.88 million shares.

With over 0.52 million RenaissanceRe Holdings Ltd. (RNR) shares trading Thursday and a closing price of $171.98 on the day, the dollar volume was approximately $89.33 million. The shares have shown a negative weekly performance of -1.93% and its price on 07/02/20 lost nearly -1.79%. Currently, there are 43.44M common shares owned by the public and among those 43.31M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: Several analysts who have offered their price forecasts for RNR have a consensus price objective of $191.56. The analysts have set the share’s price value over the next 12 months at a high of $229.00 and a low of $155.00 should the stock experience a downside. Incidentally, analysts’ outlook for the RenaissanceRe Holdings Ltd. stock is 2.70 for the next 12 months. The average price target is 12.31% above its last price level and an upside to the estimated low will see the stock lose -10.95% over that period. But an upside of 24.9% will see the stock hit the forecast high price target while mean target price for the stock is $195.00.

Insiders at the company have transacted a total of 73 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 26 of these insider trades were purchases, accounting for 126,307 shares. Insider sales of the common stock occurred on 47 occasions, with total insider shares sold totaling 80,697 shares.

The top 3 mutual fund holders in RenaissanceRe Holdings Ltd. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 1.27 million shares of the company’s stock, all valued at over $213.86 million. The company sold 3990.0 shares recently to bring their total holdings to about 2.89% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 2500.0 shares to see its total holdings expand to 1.2 million shares valued at over $201.79 million and representing 2.73% of the shares outstanding. Vanguard Small Cap Index Fund sold 8956.0 shares to bring its total holdings to over 1.14 million shares at a value of $192.01 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.60% of the shares outstanding.

Shares of RenaissanceRe Holdings Ltd. (NYSE: RNR) opened at $178.30, up $3.18 from a prior closing price of $175.12. However, the script later closed the day at $171.98, down -1.79%. The company’s stock has a 5-day price change of -1.93% and 17.01% over the past three months. RNR shares are trading -12.26% year to date (YTD), with the 12-month market performance down to -6.42% lower. It has a 12-month low price of $113.27 and touched a high of $202.68 over the same period. Currently, 0.52 million shares have been traded, compared to an average intraday trading volume of 533.96K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.66%, 2.97%, and -3.35% respectively.

Institutional ownership of RenaissanceRe Holdings Ltd. (NYSE: RNR) shares accounts for 84.60% of the company’s 43.44M shares outstanding. Mutual fund holders own 40.92%, while other institutional holders and individual stakeholders account for 52.82% and 11.79% respectively.

It has a market capitalization of $8.75B and a beta (3y monthly) value of 0.43. The stock’s trailing 12-month PE ratio is 21.83, while the earnings-per-share (ttm) stands at $7.88. The company has a PEG of 0.83 and a debt-to-equity ratio of0.22. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.76% over the week and 3.53% over the month.

Analysts forecast that RenaissanceRe Holdings Ltd. (RNR) will achieve an EPS of $2.64 for the current quarter, $1.66 for the next quarter and $15.11 for 2021. The lowest estimate earnings-per-share for the quarter is -$2.63 while analysts give the company a high EPS estimate of $3.99. Comparatively, EPS for the current quarter was $4.78 a year ago. Earnings per share for the fiscal year are expected to increase by 231.90%, and 103.47% over the next financial year. EPS should grow at an annualized rate of 26.28% over the next five years, compared to 5.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by several brokerage firm advisors rate RenaissanceRe Holdings Ltd. (RNR) as a “Moderate Buy” at a consensus score of 2.70.

Looking at the support for the RNR, a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on January 21, 2020, with the firm’s price target at $192. Wells Fargo coverage for the RenaissanceRe Holdings Ltd. (RNR) stock in a research note released on December 16, 2019 offered a Overweight rating with a price target of $220. JP Morgan was of a view on November 12, 2019 that the stock is Underweight, while Deutsche Bank gave the stock Hold rating on July 16, 2019 $186. BofA/Merrill on their part issued Underperform rating on January 16, 2019.

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