Alleghany (Y) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Alleghany (NYSE:Y) from a strong-buy rating to a hold rating in a report issued on Monday.

According to Zacks, “Shares of Alleghany have outperformed the industry in a year’s time. Alleghany’s strong performance across insurance and reinsurance operations will continue to boost its premium revenues. It strives to grow via both acquisitions and organic means as these not only diversify and strengthen its portfolio but also expand its global footprint. A solid balance sheet supports the company’s shareholder-friendly moves and its growth initiatives. It continues to expect compound book value per share growth of 7-10% over a long term. However, exposure to cat loss induces volatility in underwriting results while rising expenses weigh on the margin expansion. Alleghany is set to report third-quarter results on Nov 1. While a Zacks Rank #3 increases the predictive power of ESP, an Earnings ESP of 0.00% makes prediction difficult. The Zacks Consensus Estimate is pegged at $7.68, reflecting a year-over-year increase 134.9%.”

Separately, ValuEngine upgraded shares of Alleghany from a hold rating to a buy rating in a report on Thursday, July 26th.

Alleghany stock opened at $638.34 on Monday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.26 and a current ratio of 0.26. Alleghany has a 12 month low of $529.81 and a 12 month high of $659.88. The firm has a market cap of $9.75 billion, a PE ratio of 312.91 and a beta of 0.88.

Alleghany (NYSE:Y) last posted its quarterly earnings results on Thursday, August 2nd. The insurance provider reported $9.78 EPS for the quarter, beating the consensus estimate of $8.41 by $1.37. Alleghany had a net margin of 4.48% and a return on equity of 3.51%. The business had revenue of $1.90 billion for the quarter, compared to analysts’ expectations of $1.48 billion. During the same period in the previous year, the company posted $6.37 EPS. Alleghany’s revenue was up 22.1% on a year-over-year basis. As a group, equities analysts expect that Alleghany will post 38 earnings per share for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. lifted its stake in shares of Alleghany by 3.9% in the 2nd quarter. BlackRock Inc. now owns 1,497,952 shares of the insurance provider’s stock valued at $861,277,000 after purchasing an additional 56,410 shares during the last quarter. Boston Partners lifted its stake in shares of Alleghany by 3.1% in the 2nd quarter. Boston Partners now owns 814,564 shares of the insurance provider’s stock valued at $468,350,000 after purchasing an additional 24,146 shares during the last quarter. Victory Capital Management Inc. lifted its stake in shares of Alleghany by 1.5% in the 2nd quarter. Victory Capital Management Inc. now owns 515,980 shares of the insurance provider’s stock valued at $296,673,000 after purchasing an additional 7,375 shares during the last quarter. Findlay Park Partners LLP lifted its stake in shares of Alleghany by 33.8% in the 2nd quarter. Findlay Park Partners LLP now owns 454,362 shares of the insurance provider’s stock valued at $261,245,000 after purchasing an additional 114,691 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Alleghany by 2.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 119,754 shares of the insurance provider’s stock valued at $68,864,000 after purchasing an additional 2,301 shares during the last quarter. 82.28% of the stock is owned by institutional investors and hedge funds.

About Alleghany

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in two segments, Reinsurance and Insurance. The Reinsurance segment offers property reinsurance products, including fire, allied lines, auto physical damage, and homeowners multiple peril reinsurance products; and casualty and other reinsurance products, such as liability, medical malpractice, ocean marine and aviation, auto liability, accident and health, surety, and credit reinsurance products.

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