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Headquartered in Greenwich, Connecticut, W. R. Berkley Corporation (WRB) is an insurance holding company that is among the largest commercial lines writers in the U.S. Valued at $22.3 billion by market cap, the company operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance & Monoline Excess.
Shares of this leading property & casualty insurance company have significantly outperformed the broader market over the past year. WRB has gained 43.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024 alone, WRB stock is up 23.5%, surpassing SPX’s 18.1% rise on a YTD basis.
Zooming in further, WRB has also surpassed the Invesco KBW Property & Casualty Insurance ETF (KBWP). The exchange-traded fund has gained about 37.5% over the past year.
On Jul. 22, W.R. Berkley announced its Q2 earnings report, triggering an upward trend in its stock over the subsequent six trading sessions. The company posted a second-quarter profit of $371.9 million, with earnings of $1.04 per share, beating analysts' expectations of $0.92.
For the current fiscal year, ending in December, analysts expect WRB’s EPS to grow 22.9% annually to $4.03 on a diluted basis. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 13 analysts covering WRB stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings and seven “Holds.”
This configuration has been relatively stable over the past months.
On Jul. 23, Truist Financial Corporation (TFC) raised its price target for W. R. Berkley to $64 from $62 while maintaining a “Buy” rating following the company's Q2 earnings beat. The firm also increased its FY24 EPS estimate by $0.26 to $4.08 per share, driven by increased optimism about W. R. Berkley's investment income and topline growth.
The mean price target of $60.28 represents a 3.5% premium to WRB’s current price levels. The Street-high price target of $68 suggests an upside potential of 16.8%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
