FBR Capital Remains a Hold on Maiden Holdings Ltd

By Carrie Williams

FBR Capital analyst Randy Binner reiterated a Hold rating on Maiden Holdings Ltd (NASDAQ: MHLD) today and set a price target of $13. The company’s shares opened today at $11.25, close to its 52-week high of $18.95.

Binner observed:

“On June 26, 2017, we hosted meetings with MHLD management and institutional investors. We maintain our Market Perform rating given our conservatism around EPS for MHLD, which currently has us low on the street for 2017E and 2018E EPS. Our lower EPS outlook versus the street is likely the result of higher adverse development that stemmed from our April 2017 reserve analysis, which indicated adverse development for MHLD and AFSI (with whom MHLD has a 40% quota share reinsurance relationship). We also assume a 65.7% loss pick for MHLD in 2017, which we think is consistent with a softer P/C pricing environment. On the bright side, MHLD has a 5.4% dividend, which is ~2.5x covered by our 2018E EPS forecast. This yield is very high for the insurance sector (average dividend yield is ~2%) and is attractive looking across financials, considering the flattening yield curve environment.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 12.7% and a 69.8% success rate. Binner covers the Financial sector, focusing on stocks such as American Equity Investment Life, American International Group, and State National Companies Inc.

Maiden Holdings Ltd has an analyst consensus of Moderate Buy, with a price target consensus of $16.

Based on Maiden Holdings Ltd’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $756 million and quarterly net profit of $26.52 million. In comparison, last year the company earned revenue of $659 million and had a net profit of $36.89 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Maiden Holdings Ltd. operates as an investment holding company. It focuses on serving the needs of regional and specialty insurers in the United States, Europe and select other global markets by providing innovative reinsurance solutions designed to support their capital needs.