Hunter Perkins Capital Management LLC has made a strategic move by purchasing shares of AXIS Capital Holdings Limited (NYSE:AXS) during the first quarter, according to a recent filing with the SEC. The purchase of 12,884 shares at approximately $703,000 has been a well-calculated and wise investment, given the recent strong earnings results from AXIS Capital.
AXIS Capital is a global provider of specialty insurance and reinsurance products through its two segments – Insurance and Reinsurance. Their Insurance segment offers a comprehensive range of property insurance products including commercial buildings, residential premises, construction projects and offshore energy installations. Additionally, the marine classes coverage includes cargo, liability and hull war. The Reinsurance segment provides solutions for marine risks along with credit, political risk and aviation sectors.
The earnings statement released on April 27th by AXIS Capital was remarkable as they outpaced the consensus estimates of Wall Street analysts reporting figures suggesting like-for-like earnings per share of $2.33 against $1.89 expectations-an impressive gain upwards of 44 cents! As per Wall Street expectation maintained in terms of revenue came in lower than expected reaching roughly about $1.61 billion compared to what Reuters had estimated thus putting it behind estimate by almost an amount exceeding USD 200 million.
Axis Capital’s net margin stands at an impressive 4.87% with return on equity being calculated as over 13 % indicating that financial health is top-notch amongst peers in this space while maintaining exceptional client satisfaction rates across both business segments.
Despite revenue dropping by almost 11.3% year-over-year for this period; on average industry observers predict that AXIS will post EPS(earnings per share) growth figures to be around approximately USD7.7- which serves as an indication of their increased relevance in niche segments and potential market consolidation opportunities globally.
Given this background information AXIS capital seems poised to succeed further given this combination offering unparalleled stability in such turbulent markets. It is not surprising that Hunter Perkins Capital Management LLC has decided to invest more vigorously by acquiring shares in the firm. Overall, such strategic moves bear the hallmark of investment success and augur very well for the future collaborations between these two industry titans!
[bs_slider_forecast ticker=”AXS”]
Institutional Investors Show Interest in AXIS Capital Holdings as Company Sees Stable Growth Despite Fluctuating Share Price.
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”AXS” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]AXIS Capital Holdings Limited, a provider of specialty insurance and reinsurance products on a global scale, has attracted interest from several major institutional investors in recent months. Duality Advisers LP acquired a $1,312,000 stake in the company during the fourth quarter of 2020, whilst EverSource Wealth Advisors LLC purchased a new stake worth $72,000 over the same period. Treasurer of the State of North Carolina added 430 shares to its existing position of 33,768 shares valued at $1,829,000, while PDT Partners LLC also bought a new stake worth approximately $207,000 towards the end of Q3 last year. Further to this Dimensional Fund Advisors LP boosted its holdings by 6% during Q4 2020 purchasing an additional 216,025 shares in that quarter alone bringing their total share ownership to over 3.8 million and therefore owning almost one-tenth of AXIS Capital overall.
These acquisitions have had little impact on AXS’s share price as it continues to fluctuate within a modest range with $63.99 as its recent high and $48.32- just below its current value – as its low over the last twelve months. The company currently operates under two segments which are Reinsurance and Insurance; catering mainly for property insurances both commercial and residential but also providing coverage for marine classes covering offshore energy along with cargo liability amongst other specialist categories such as aviation insurance.
AXIS is also positive about its future growth prospects having recently declared a quarterly dividend scheduled for Tuesday July 18th paying out shareholders on record before June 30th up to an annualized return of $0.44 per security received; according to sources AXS’s payout ratio stands at just over two thirds (67%) leading analysts to reassess their approach toward dealing with AXIS Capital’s stocks. Jefferies Financial Group were amongst those analysts raising their price targets giving the company a “buy” rating from $72.00 to $73.00; however, John Q analyst is more cautious holding a “hold” rating with an average target price of $64 as AXIS rivals remain competitive and continue to intensify along with the risk of replacement due to advancements in insurance technology.
