Assured Guaranty (NYSE: AGO) has reported impressive quarterly earnings, significantly exceeding market expectations. For the quarter, the financial services provider announced earnings per share (EPS) of $2.32, surpassing the consensus estimate of $1.54 by $0.78. The results, released on March 20, 2024, also highlighted a revenue of $277 million, well above analysts’ projections of $205.83 million.
The company achieved a net margin of 40.65% and a return on equity of 7.09%. This quarter marked a remarkable 77.6% increase in revenue compared to the same period last year, when Assured Guaranty recorded an EPS of $1.27.
Stock Performance and Market Metrics
Following the earnings announcement, Assured Guaranty shares experienced a slight decline, trading down by $0.80 to $85.84 on the subsequent trading day. The stock recorded a trading volume of 173,062 shares, falling short of its average volume of 266,839 shares. Over the last year, Assured Guaranty has seen a low of $74.09 and a high of $92.39. The company’s market capitalization stands at $3.96 billion, with a price-to-earnings (P/E) ratio of 10.65 and a beta of 0.94. Additionally, its fifty-day moving average is $87.25, while the two-hundred-day moving average is $85.37. The company maintains a debt-to-equity ratio of 0.30 and a current ratio of 0.88.
Dividend Increase and Institutional Investment
In conjunction with its earnings report, Assured Guaranty announced an increase in its quarterly dividend. Stockholders of record on March 6, 2024, will receive a dividend of $0.38 per share, up from the previous dividend of $0.34. This adjustment translates to an annualized dividend of $1.52 and a yield of 1.8%. The ex-dividend date is also set for March 6, and the company’s payout ratio currently stands at 16.87%.
Institutional investments in Assured Guaranty have seen notable activity recently. Invesco Ltd. increased its holdings by 1.4% during the fourth quarter, now owning 194,128 shares valued at $17.45 million. Corient Private Wealth LLC significantly boosted its stake by 377.5%, acquiring an additional 73,339 shares. Other institutions, including Summit Global Investments and Empowered Funds LLC, have also made new investments.
As of now, institutional investors hold approximately 92.22% of Assured Guaranty’s stock.
Analysts’ Ratings and Future Outlook
Analysts have varied opinions on Assured Guaranty, with several research firms issuing updates. UBS Group raised its target price from $92.00 to $94.00 while maintaining a “neutral” rating. Weiss Ratings reaffirmed a “buy” rating, and Keefe, Bruyette & Woods increased their price objective from $105.00 to $108.00, categorizing the stock as “outperform.” Currently, data from MarketBeat.com shows that two analysts have rated the stock as a Buy and two as Hold, giving it an average rating of “Moderate Buy” with a target price of $101.00.
Assured Guaranty Ltd., a Bermuda-based provider, offers financial guaranty insurance and reinsurance products, primarily serving public finance and infrastructure markets. The company specializes in credit enhancement, ensuring timely payments on debt obligations for municipalities and infrastructure projects. By combining rigorous risk assessment with active portfolio management, Assured Guaranty facilitates capital access at competitive rates while safeguarding investors against credit risks.
