Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
Berkshire Hathaway (
BRK.A) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Berkshire Hathaway fell $1550 (-1.1%) to $133034 on average volume. Throughout the day, 385 shares of Berkshire Hathaway exchanged hands as compared to its average daily volume of 500 shares. The stock ranged in price between $133000-$134535 after having opened the day at $133505 as compared to the previous trading day's close of $134584. Other companies within the Insurance industry that declined today were:
Life Partners Holdings (
LPHI), down 10.7%,
Kingsway Financial Services (
KFS), down 6.3%,
MBIA (
MBI), down 4.9%, and
MGIC Investment Corporation (
MTG), down 4.6%.
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Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska. Berkshire Hathaway has a market cap of $124.16 billion and is part of the
financial sector. The company has a P/E ratio of 1833.1, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Friday.
TheStreet Ratings rates Berkshire Hathaway as a
hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, premium valuation and weak operating cash flow.
On the positive front,
American National Insurance (
ANAT), up 3.8%,
Kansas City Life Insurance (
KCLI), up 3%,
Donegal Group (
DGICB), up 2.6%, and
Fidelity National Financial (
FNF), up 2.4%, were all gainers within the insurance industry with
MetLife (
MET) being today's featured insurance industry leader.
For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider
KBW Insurance ETF (
KIE) while those bearish on the insurance industry could consider
Proshares Short Financials (
SEF).
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