ProAssurance (NYSE:PRA) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of ProAssurance (NYSE:PRA) from a buy rating to a hold rating in a report published on Thursday, Zacks.com reports. The brokerage currently has $41.00 target price on the insurance provider’s stock.

According to Zacks, “ProAssurance’s third-quarter 2019 operating earnings per share of 30 cents beat the Zacks Consensus Estimate by 150%, primarily driven by higher revenues. However, the bottom line declined 28.6% year over year. It has been performing well on the back of growth across its operating segments. Moreover, the company significantly achieved inorganic growth via successful acquisitions and integration of companies. Its shares have underperformed its industry in a year's time. However, growing expenses weighs on its bottom line. Volatility in premium retention pertaining to the company’s physician business and exposure to cat loss are other concerns. Another major risk is associated with its investment portfolio, which primarily consists of fixed income securities.”

Separately, ValuEngine cut shares of ProAssurance from a buy rating to a hold rating in a report on Tuesday, October 1st. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. The company has a consensus rating of Hold and an average target price of $41.00.

PRA traded up $0.05 during trading on Thursday, hitting $37.88. The company had a trading volume of 194,100 shares, compared to its average volume of 274,054. The company has a market cap of $2.06 billion, a PE ratio of 25.59 and a beta of 0.51. The business has a 50-day moving average of $39.61 and a 200-day moving average of $38.67. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.39 and a quick ratio of 0.39. ProAssurance has a 1-year low of $34.11 and a 1-year high of $45.45.

ProAssurance (NYSE:PRA) last posted its quarterly earnings results on Tuesday, November 5th. The insurance provider reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.16. The firm had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $239.61 million. ProAssurance had a net margin of 3.86% and a return on equity of 2.19%. The firm’s quarterly revenue was up 870.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.42 earnings per share. Research analysts forecast that ProAssurance will post 0.63 earnings per share for the current year.

A number of hedge funds have recently added to or reduced their stakes in PRA. Nuveen Asset Management LLC bought a new stake in ProAssurance during the second quarter valued at $19,948,000. Royal Bank of Canada increased its stake in ProAssurance by 5,875.3% during the second quarter. Royal Bank of Canada now owns 348,183 shares of the insurance provider’s stock valued at $12,573,000 after purchasing an additional 342,356 shares during the last quarter. Man Group plc increased its stake in ProAssurance by 887.7% during the second quarter. Man Group plc now owns 321,104 shares of the insurance provider’s stock valued at $11,595,000 after purchasing an additional 288,594 shares during the last quarter. Granite Investment Partners LLC bought a new stake in ProAssurance during the second quarter valued at $9,551,000. Finally, Invesco Ltd. increased its stake in ProAssurance by 42.2% during the second quarter. Invesco Ltd. now owns 670,516 shares of the insurance provider’s stock valued at $24,211,000 after purchasing an additional 198,863 shares during the last quarter. Hedge funds and other institutional investors own 80.44% of the company’s stock.

ProAssurance Company Profile

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, Segregated Portfolio Cell Reinsurance, and Lloyd's Syndicate segments.

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