James River Group (NASDAQ:JRVR) Shares Gap Up Following Earnings Beat

Posted by Defense World Staff on May 4th, 2023

James River Group Holdings, Ltd. (NASDAQ:JRVR – Get Rating) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $18.99, but opened at $19.89. James River Group shares last traded at $20.53, with a volume of 14,325 shares traded.

The insurance provider reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.04. The company had revenue of $235.60 million during the quarter, compared to the consensus estimate of $218.45 million. James River Group had a return on equity of 12.58% and a net margin of 3.16%. James River Group’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.37 earnings per share.

James River Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 31st. Shareholders of record on Monday, March 13th were issued a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 0.98%. The ex-dividend date of this dividend was Friday, March 10th. James River Group’s payout ratio is currently 33.90%.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Barclays decreased their price target on James River Group from $24.00 to $21.00 and set an “equal weight” rating on the stock in a research note on Wednesday, April 12th. StockNews.com assumed coverage on James River Group in a research note on Thursday, March 16th. They set a “hold” rating on the stock. JMP Securities decreased their price objective on James River Group from $36.00 to $32.00 in a research report on Tuesday, April 18th. Finally, Keefe, Bruyette & Woods decreased their price objective on James River Group from $30.00 to $28.00 and set an “outperform” rating for the company in a research report on Tuesday, April 18th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fuller & Thaler Asset Management Inc. lifted its stake in shares of James River Group by 163.8% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,380,574 shares of the insurance provider’s stock worth $34,155,000 after purchasing an additional 857,178 shares in the last quarter. Jennison Associates LLC raised its position in shares of James River Group by 64.8% during the 3rd quarter. Jennison Associates LLC now owns 1,092,412 shares of the insurance provider’s stock worth $24,918,000 after purchasing an additional 429,730 shares during the period. Wellington Management Group LLP raised its position in shares of James River Group by 41.9% during the 1st quarter. Wellington Management Group LLP now owns 934,787 shares of the insurance provider’s stock worth $23,126,000 after purchasing an additional 275,981 shares during the period. T. Rowe Price Investment Management Inc. increased its position in James River Group by 8.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,583,161 shares of the insurance provider’s stock valued at $74,924,000 after acquiring an additional 274,337 shares during the period. Finally, The Manufacturers Life Insurance Company increased its holdings in shares of James River Group by 1,833.4% during the fourth quarter. The Manufacturers Life Insurance Company now owns 271,682 shares of the insurance provider’s stock valued at $5,681,000 after purchasing an additional 257,630 shares during the period. Institutional investors and hedge funds own 99.69% of the company’s stock.

James River Group Price Performance

The company has a market capitalization of $762.03 million, a P/E ratio of 34.42 and a beta of 0.39. The business’s 50-day simple moving average is $20.91 and its 200 day simple moving average is $22.01. The company has a current ratio of 0.54, a quick ratio of 0.54 and a debt-to-equity ratio of 0.40.

About James River Group

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James River Group Holdings Ltd. engages in the ownership and operation of a group of specialty insurance and reinsurance companies. It operates through the following segments: Excess and Surplus Lines, Specialty Admitted Insurance, Casualty Reinsurance, and Corporate and Other. The Excess and Surplus Lines segment offers E&S commercial lines liability and property insurance products.