Demystifying ProAssurance: Insights From 4 Analyst Reviews

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Across the recent three months, 4 analysts have shared their insights on ProAssurance PRA, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 3 1 0 0
Last 30D 0 1 0 0 0
1M Ago 0 1 1 0 0
2M Ago 0 1 0 0 0
3M Ago 0 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $18.75, a high estimate of $24.00, and a low estimate of $14.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 6.25%.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of ProAssurance's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Paul Newsome Piper Sandler Lowers Overweight $15.00 $16.00
Matthew Carletti JMP Securities Lowers Market Outperform $22.00 $24.00
Mark Hughes Truist Securities Lowers Hold $14.00 $15.00
Matthew Carletti JMP Securities Lowers Market Outperform $24.00 $25.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ProAssurance. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of ProAssurance compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of ProAssurance's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of ProAssurance's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on ProAssurance analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Delving into ProAssurance's Background

ProAssurance Corp is a holding company for property and casualty insurance companies. The company's wholly-owned insurance subsidiaries provide professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, and workers' compensation insurance. ProAssurance reports operating results in five segments: Specialty Property and Casualty, Workers' Compensation, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicate, and Corporate. ProAssurance generates the vast majority of its revenue from its Specialty P&C activities, followed by Worker's Compensation.

ProAssurance's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, ProAssurance faced challenges, resulting in a decline of approximately -0.05% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: ProAssurance's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 2.16%, the company may face hurdles in effective cost management.

Return on Equity (ROE): ProAssurance's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.6%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): ProAssurance's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.11%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: ProAssurance's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.4.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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