Renaissance Technologies buys $1.34M stake in Greenlight Capital Re
What's the deal? Renaissance TechnologiesDealroom has a profile for this one. Try Dealroom → has taken a new stake in Greenlight ReinsuranceDealroom has a profile for this one. Try Dealroom →, according to a Securities and Exchange Commission filing. The quant hedge fund bought 77,650 shares in the Bermuda-based reinsurer during the first quarter, a holding valued at about $1.34 million, or roughly 0.23% of the company.
Why now? The move comes amid a broader reshuffling among large investors. MarketBeat data shows other funds adjusted their GLRE exposure in the same period, including Arrowstreet CapitalDealroom has a profile for this one. Try Dealroom →, which increased its holding sharply. Institutional and hedge fund investors now control a little over two-fifths of the company's shares.
What's the mixed picture? Greenlight Reinsurance, externally managed and focused on treaty and facultative reinsurance for property and casualty insurers, posted first-quarter net income of $35.8 million, or $1.05 per diluted share, with a combined ratio of 96.0%. But its August results showed a wider miss, with a loss of $0.89 per share against consensus estimates for a smaller loss, and revenue also below forecasts.
What do analysts say? They remain restrained. Recent rating changes from Zacks ResearchDealroom has a profile for this one. Try Dealroom →, Weiss RatingsDealroom has a profile for this one. Try Dealroom →, and Wall Street ZenDealroom has a profile for this one. Try Dealroom → have left the reinsurer with a consensus "Hold". ChartMill data points to a consensus price target of $20.08, implying room for upside from recent levels.
What about insiders? Disclosures showed director Joseph P. Platt, Jr. sold 11,747 shares in late May, while director Leonard R. Goldberg bought 6,000 shares on August 10, lifting his stake by 20%. The company spent $5 million on buybacks at an average price of $16.70.
The signal: A quant fund's small bet on a modestly valued reinsurer underscores GLRE's continuing appeal to specialist money managers, even as headline earnings disappoint and Wall Street stays on the sidelines.
Read more: Noah News
Image credit: Generated with Gemini
