EG

Company Overview: Everest Group, Ltd., a Bermuda-based insurance and reinsurance provider with a market cap of $15.4 billion, offers a range of products including property, casualty, and specialty insurance, while maintaining a strong global presence and focusing on innovation in specialty lines.

Stock Performance and Outlook: Despite recent mixed earnings results and a 7.6% decline over the past year, analysts maintain a "Moderate Buy" rating for EG, with a price target suggesting a potential upside, as the company has outperformed the Nasdaq Composite in the short term.

Earnings Conference Call Announcement: Everest Group, Ltd. will hold its Q1 2025 earnings conference call on May 1, 2025, at 8:00 am ET, with financial results to be released on April 30, 2025.

Company Overview: Everest is a leading global underwriter specializing in property, casualty, and specialty reinsurance and insurance solutions, recognized for its disciplined underwriting and commitment to various stakeholders.

Analyst Rating and Price Target: Meyer Shields from KBW has maintained a Buy rating on Everest Group with a price target of $434.00, while the current share price is $349.59. The analyst consensus for Everest Group is a Moderate Buy with a price target average of $397.33.

Analyst Performance: Shields is recognized as a top 100 analyst with an average return of 14.2% and a success rate of 72.75%, focusing on the Financial sector and covering various stocks including Allstate and Progressive.

New Board Appointment: John Howard has been appointed as an independent, non-executive member of Everest Group's Board of Directors, bringing over three decades of insurance leadership experience and a strong track record in business transformation and growth.

Leadership Praise: Everest's President and CEO, Jim Williamson, and Chairman, Joseph V. Taranto, expressed confidence in Howard's ability to enhance the company's market position and drive long-term profitability through his strategic insights and industry relationships.

New Board Appointment: Everest Group, Ltd. has appointed John Howard as an independent, non-executive member of its Board of Directors, effective immediately. His extensive experience in the insurance industry is expected to contribute to the company's long-term growth and profitability.

Background of John Howard: With over three decades of leadership in the insurance sector, Howard previously served as CEO of Truist Insurance Holdings and has held executive roles at major firms like Prudential Financial and GE. He also has significant involvement in industry associations and policymaking.

Dividend Announcement: Everest Group, Ltd. declared a dividend of $2.00 per common share, payable by March 28, 2025, to shareholders recorded as of March 17, 2025.

Company Overview: Everest is a global leader in underwriting, providing property, casualty, and specialty reinsurance solutions, with a strong focus on disciplined risk management and a commitment to stakeholders worldwide.

Company Overview and Performance: Everest Group, Ltd. is a leading reinsurance and insurance solutions provider with a market cap of $14.8 billion, but its shares have dropped 6.4% over the past year, underperforming compared to the S&P 500 Index and other industry benchmarks due to economic challenges.

Analyst Outlook: Despite recent mixed earnings results, analysts maintain a "Moderate Buy" consensus on the stock, with an average price target suggesting a potential upside of 15.7%, indicating optimism for future growth in earnings per share.

Stock Performance: Everest Group Ltd's shares have entered oversold territory with an RSI of 29.3, indicating potential buying opportunities for investors as the stock price has fallen to $327.37.

Dividend Yield Insight: The company's recent annualized dividend of $8 per share translates to a yield of 2.40%, making it attractive for dividend investors despite the current market conditions.

Market Response to Job Figures: Wall Street indices remained stable as investors reacted to January's job report, which showed a modest increase in jobs and a decrease in the unemployment rate to 4.0%. Strong wage growth raised inflation concerns, impacting expectations for future interest rates.

Earnings Reports Overview: A significant number of S&P 500 companies reported earnings this week, with many exceeding expectations, particularly in sectors like Information Technology and Pharmaceuticals. Notable performances included Uber, Amazon, and Qualcomm, while some companies like PayPal and Pfizer faced mixed results.

Wells Fargo and Morgan Stanley Ratings: Elyse Greenspan from Wells Fargo maintains a Hold rating on Everest Group with a price target of $370, while Morgan Stanley also issued a Hold rating. Barclays has a Buy rating with a raised price target of $470.

Financial Performance: Everest Group reported Q3 revenue of $4.29 billion and a net profit of $509 million, showing growth compared to last year's revenue of $3.99 billion but a decline in net profit from $678 million.

Everest Group Analysis: Analysts maintain a neutral stance on Everest Group with a Hold rating and a price target of $370.00, while the consensus suggests a Moderate Buy with an average target of $397.11, indicating potential upside from current levels.

Oaktree Specialty Lending Insights: Oaktree Specialty Lending also receives a Hold rating from analysts, with a price target set at $15.00, reflecting a cautious outlook as the stock trades near its 52-week low.

Morgan Stanley Downgrade: Morgan Stanley has downgraded Everest Group from Overweight to Equal Weight, reducing the price target from $425 to $340 due to management changes and reserve charges, indicating a focus on stabilizing the balance sheet amid a challenging reinsurance market.

Investment Outlook: The investment thesis for Everest Group will depend on its ability to navigate current market conditions and eventually achieve growth, which analysts believe will take time.

Everest Group Ratings: David Motemaden from Evercore ISI maintains a Hold rating on Everest Group with a price target of $409, while TD Cowen also issued a Hold rating, and Bank of America Securities maintained a Buy rating.

Insider Activity and Stock Performance: Corporate insider sentiment is neutral, with recent sales by insiders, and the stock has fluctuated between a one-year high of $407.30 and a low of $341.00.

Credit Ratings Stability: AM Best has maintained the Financial Strength Rating of A+ and Long-Term Issuer Credit Ratings of “aa-” for Everest Group, despite a reported $1.7 billion net reserve strengthening due to unfavorable loss trends in its U.S. casualty business.

Ongoing Monitoring: AM Best will continue to assess Everest's reserve adequacy and profitability, particularly in light of social inflation trends affecting the U.S. casualty (re)insurance market, which may necessitate further reserve strengthening in the future.

Analyst Ratings and Price Targets: KBW analyst Meyer Shields has maintained a Buy rating on Everest Group with a price target of $434.00, while the general consensus suggests a Moderate Buy with an average price target of $413.80, indicating potential upside from current levels.

Insider Activity and Sentiment: Recent insider activity shows negative sentiment towards Everest Group, with an increase in insiders selling shares, including a notable sale by EVP James Allan Williamson, which raises concerns about the company's stock performance.

Analyst Downgrades: Several Wall Street analysts have downgraded ratings for various companies, including Floor & Decor Holdings (from Neutral to Sell), CARGO Therapeutics (from Outperform to Market Perform), and Vertex Pharmaceuticals (from Overweight to Equal-Weight).

Price Target Adjustments: Analysts also adjusted price targets, with KKR & Co. seeing an increase from $153 to $173 despite a downgrade to Hold, while Everest Group's target was lowered from $453 to $375 following its downgrade to Market Perform.

Analyst Upgrades and Downgrades: Pivotal Research raised the price target for Meta Platforms from $800 to $875, while B of A Securities downgraded PagerDuty's target from $23 to $18. Other notable changes include Needham increasing ServiceNow's target from $1,150 to $1,200 and Mizuho cutting Microsoft's target from $510 to $500.

Stock Performance Updates: Various companies saw significant stock performance updates, with T-Mobile US closing at $235.15 after Wells Fargo raised its target to $235, while Everest Group shares settled at $351.51 following a downgrade by BMO Capital.

Financial Performance Overview: Everest Group anticipates a full-year 2024 net income between $1.3 billion and $1.4 billion, despite facing $1.5 billion in unfavorable prior-year loss reserve developments, which they have addressed through significant reserve strengthening in their U.S. casualty lines.

Strategic Actions and Future Goals: The company has implemented aggressive underwriting measures to manage social inflation risks and aims for a mid-teens total shareholder return over the cycle, while discontinuing detailed forward guidance on future earnings.

Earnings and Projections: Everest Group estimates its full-year non-GAAP net operating income at $1.2B-$1.3B, which is below the consensus estimate of $1.93B, with a projected net income for 2024 of $1.3B-$1.4B compared to an estimated $1.90B.

Stock Performance and Strategic Changes: The company's stock fell 1.6% in after-hours trading, and it announced a new target for mid-teens total shareholder return while discontinuing detailed forward guidance, alongside the formation of a new "other" segment affecting prior-year loss reserves.

Financial Performance: Everest Group announced preliminary FY2024 net income estimates between $1.3B - $1.4B and non-GAAP net operating income between $1.2B to $1.3B.

Market Reaction: Following the announcement, EG shares fell 2.9% in post-market trading on Monday.