Morgan Stanley Downgrades National General Holdings to Hold

By Carrie Williams

In a report released today, Kai Pan from Morgan Stanley downgraded National General Holdings (NASDAQ: NGHC) to Hold, with a price target of $23. The company’s shares closed yesterday at $23.46, close to its 52-week high of $23.59.

According to TipRanks.com, Pan is a 3-star analyst with an average return of 2.8% and a 73.1% success rate. Pan covers the Financial sector, focusing on stocks such as American International Group, Marsh & Mclennan Companies, and Renaissancere Holdings Ltd.

National General Holdings has an analyst consensus of Moderate Buy.

Based on National General Holdings’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $919 million and quarterly net profit of $28.13 million. In comparison, last year the company earned revenue of $596 million and had a net profit of $43.11 million.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Jeffrey Weissmann, the GC & Secretary of NGHC sold 18,000 shares for a total of $410,040.

National General Holdings Corp. is a specialty personal lines insurance holding company. The company, through its subsidiaries provides personal and commercial automobile insurance, health insurance products and other niche insurance products. It operates its business through two segments: Property & Casualty and Accident & Health. The Property & Casualty segment operates its business through two primary distribution channels: agency and affinity. The agency channel focuses primarily on writing standard and sub-standard auto coverage through its network of independent agents. The affinity channel provides recreational vehicle coverage. The Accident & Health segment provides accident and non-major medical health insurance products targeting its existing insured and the anticipated emerging market of uninsured or underinsured employees. National General Holdings was founded by Michael Karfunkel in 2009 and is headquartered in New York, NY.