Street Calls of the Week
Everest Re Group Ltd (NYSE:EG)'s stock has touched a 52-week low, dipping to $325.32, signaling a period of bearish momentum for the reinsurance company. The $14 billion market cap insurer, which maintains a healthy P/E ratio of 10.5, appears undervalued according to InvestingPro analysis. This latest price level reflects a significant retreat from more favorable valuations over the past year, with the stock experiencing a 1-year change showing a decline of 14.7%. Despite the pullback, the company offers a 2.37% dividend yield and has maintained dividend payments for 31 consecutive years, according to InvestingPro data. Investors are closely monitoring the company's performance, as this new low could potentially attract interest from value-seeking shareholders or indicate deeper underlying challenges within the firm's operations or broader market conditions. For a deeper understanding of Everest Re's valuation and prospects, check out the comprehensive Pro Research Report available on InvestingPro, which covers what really matters about top stocks through expert analysis.
In other recent news, Everest Group has announced a significant leadership transition with Joseph V. Taranto set to retire as Chairman in May 2025, to be succeeded by John Graf. This change marks a new chapter for the company as it continues to navigate the global insurance and reinsurance industry. Meanwhile, Keefe, Bruyette & Woods maintained their Outperform rating on Everest Group, citing overstated reserves and projecting earnings per share of $49.05 for 2025 and $62.40 for 2026. In contrast, Morgan Stanley (NYSE:MS) downgraded Everest Group from Overweight to Equalweight, adjusting the price target to $340, following a $1.7 billion reserve charge announcement. The downgrade reflects concerns about the company's growth and underwriting profile in the coming years.
Additionally, Everest Group appointed John Howard as an independent, non-executive member to its Board of Directors, bringing extensive industry experience. The company also made changes to executive compensation, awarding restricted stock to key executives and increasing bonus targets to align their interests with shareholders. These developments underscore Everest Group's ongoing efforts to strengthen leadership and financial performance amidst industry challenges.
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