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Hamilton, Bermuda-based Everest Group, Ltd. (EG) provides reinsurance and insurance products. Valued at a market cap of $15.4 billion, the company offers property, casualty, and specialty reinsurance and insurance solutions, as well as coverage for catastrophe risks, professional liability, and claims management and support services.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and EG fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the insurance - reinsurance industry. With a strong global presence, the company serves clients in North America, Latin America, Europe, and Asia-Pacific, leveraging its underwriting expertise and risk management capabilities. Additionally, its strategic focus on innovation and expanding specialty lines, such as marine, aviation, and professional liability insurance, reinforces its position as a key player in the industry.
This insurance company is currently trading 11.1% below its 52-week high of $407.30, reached on Oct. 4, 2024. Shares of EG have marginally declined over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 8.8% loss during the same time frame.
Moreover, on a YTD basis, shares of EG are slightly down, compared to NASX’s 5.4% downtick. However, in the longer term, EG has fallen 7.6% over the past 52 weeks, lagging behind NASX’s 11.5% gain over the same time frame.
To confirm its recent bullish trend, Everest Group has been trading above its 50-day moving average since late February, with slight fluctuations. However, it has remained below its 200-day moving average since early December, 2024.
EG released its Q4 earnings results on Feb. 3. Shares of the company plunged 1% the following day as it reported a mixed performance. Its revenue advanced 26.7% year-over-year to $4.6 billion and topped Wall Street expectations by 4.5%. However, it reported a net operating loss of $18.39 per share, a sharp decline from a net operating income of $25.18 per share recorded in the previous-year quarter. This bottom line figure was also worse than the consensus expectations of a $16.65 per share loss, primarily due to the net unfavorable development of prior-year loss reserves in U.S. casualty lines. Additionally, its insurance segment’s gross written premium fell 1.5% year-over-year to $1.4 billion, further weighing on investor sentiment.
Everest Group has lagged behind its rival, RenaissanceRe Holdings Ltd.’s (RNR) 3.1% gain over the past 52 weeks but has outpaced RNR’s 3.9% decline on a YTD basis.
Given EG’s recent outperformance relative to the Nasdaq, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering it, and the mean price target of $397.69 suggests a 9.8% premium to its current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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