Last Updated: 15 Sep 2024
Executive Summary
ProAssurance Corporation (PRA) is a property and casualty insurance and reinsurance provider with a market capitalization of $665 million. Despite a recent decline in quarterly revenue and negative EPS, the company's financial performance remains stable, with an EBITDA of $72.9 million and a PEGRatio of 1.02. The stock is currently trading at $13, below its 52-week high of $19.25 but above its 50-day moving average of $12.52. Analysts have a Hold rating on the stock, with a target price of $16.75.
Company Overview
ProAssurance Corporation is headquartered in Birmingham, Alabama, and offers a range of insurance products in the United States. The company has a strong track record of profitability and has been consistently profitable for the past five years. ProAssurance has a diversified customer base and is well-positioned to benefit from the growing demand for insurance products.
Fundamental Analysis
ProAssurance's financial performance has been mixed in recent quarters. The company reported a decline in quarterly revenue of 0.8% and negative EPS of $0.42 in its most recent quarter. However, the company's EBITDA and operating margin remain healthy. ProAssurance has a strong balance sheet with a low debt-to-equity ratio and ample liquidity.
Technical Analysis
ProAssurance's stock price has been trading in a range between $10.76 and $19.25 over the past year. The stock is currently trading below its 50-day moving average but above its 200-day moving average. The stock's relative strength index (RSI) is at 45, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
ProAssurance's stock is likely to trade in a range in the near term. The stock is facing some headwinds from the recent decline in quarterly revenue and negative EPS. However, the company's strong balance sheet and diversified customer base should provide some support to the stock price.
Long Term Outlook
ProAssurance's long-term outlook is positive. The company is well-positioned to benefit from the growing demand for insurance products. The company's strong financial performance and diversified customer base should drive long-term growth.
Analyst Recommendations
Analysts have a Hold rating on ProAssurance's stock, with a target price of $16.75. The analysts believe that the stock is fairly valued and that investors should hold the stock for the long term.
