On March 15, 2023, B of A Securities upgraded their outlook for Berkley (NYSE:WRB) from Neutral to Buy.

Analyst Price Forecast Suggests 40.71% Upside

As of March 15, 2023, the average one-year price target for Berkley is $84.85. The forecasts range from a low of $75.75 to a high of $93.45. The average price target represents an increase of 40.71% from its latest reported closing price of $60.30.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Berkley is $12,092MM, an increase of 8.29%. The projected annual non-GAAP EPS is $4.98.

Berkley Declares $0.10 Dividend

On February 24, 2023 the company declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Shareholders of record as of March 9, 2023 will receive the payment on March 23, 2023. Previously, the company paid $0.10 per share.

At the current share price of $60.30 / share, the stock’s dividend yield is 0.66%. Looking back five years and taking a sample every week, the average dividend yield has been 1.65%, the lowest has been 0.41%, and the highest has been 3.90%. The standard deviation of yields is 0.84 (n=237).

The current dividend yield is 1.17 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.17. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -0.20%.

What are Large Shareholders Doing?

Atlanta Capital Management Co L L C holds 9,025K shares representing 3.43% ownership of the company. In it’s prior filing, the firm reported owning 8,982K shares, representing an increase of 0.48%. The firm decreased its portfolio allocation in WRB by 1.70% over the last quarter.

Kayne Anderson Rudnick Investment Management holds 8,370K shares representing 3.18% ownership of the company. In it’s prior filing, the firm reported owning 8,932K shares, representing a decrease of 6.71%. The firm decreased its portfolio allocation in WRB by 41.39% over the last quarter.

Janus Henderson Group holds 7,049K shares representing 2.68% ownership of the company. In it’s prior filing, the firm reported owning 9,294K shares, representing a decrease of 31.86%. The firm decreased its portfolio allocation in WRB by 71.53% over the last quarter.

EAASX – Eaton Vance Atlanta Capital SMID-Cap Fund holds 6,629K shares representing 2.52% ownership of the company. In it’s prior filing, the firm reported owning 7,127K shares, representing a decrease of 7.51%. The firm decreased its portfolio allocation in WRB by 3.16% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,044K shares representing 2.29% ownership of the company. In it’s prior filing, the firm reported owning 5,921K shares, representing an increase of 2.04%. The firm increased its portfolio allocation in WRB by 5.93% over the last quarter.

What is the Fund Sentiment?

There are 1409 funds or institutions reporting positions in Berkley. This is an increase of 78 owner(s) or 5.86% in the last quarter. Average portfolio weight of all funds dedicated to WRB is 0.28%, an increase of 1.79%. Total shares owned by institutions increased in the last three months by 1.29% to 225,980K shares. The put/call ratio of WRB is 0.50, indicating a bullish outlook.

W.R. Berkley Background Information
(This description is provided by the company.)

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance & Monoline Excess.

This article originally appeared on Fintel

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