3 Stocks Pushing The Insurance Industry Lower

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The Insurance industry as a whole closed the day down 0.4% versus the S&P 500, which was unchanged. Laggards within the Insurance industry included Donegal Group ( DGICB), down 1.6%, First Acceptance ( FAC), down 2.3%, Global Indemnity ( GBLI), down 2.0%, Citizens ( CIA), down 4.4% and Atlas Financial Holdings ( AFH), down 6.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Atlas Financial Holdings ( AFH) is one of the companies that pushed the Insurance industry lower today. Atlas Financial Holdings was down $1.00 (6.7%) to $14.01 on heavy volume. Throughout the day, 102,758 shares of Atlas Financial Holdings exchanged hands as compared to its average daily volume of 35,200 shares. The stock ranged in price between $13.95-$15.00 after having opened the day at $15.00 as compared to the previous trading day's close of $15.01.

Atlas Financial Holdings, Inc., through its subsidiaries, is engaged in underwriting commercial automobile insurance policies in the United States. The company focuses on the light commercial automobile sector. Atlas Financial Holdings has a market cap of $138.3 million and is part of the financial sector. Shares are up 2.0% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Atlas Financial Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Atlas Financial Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on AFH go as follows:

  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 36.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AFH has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 264.1% when compared to the same quarter one year prior, rising from $0.60 million to $2.19 million.
  • The gross profit margin for ATLAS FINANCIAL HOLDINGS INC is currently extremely low, coming in at 9.65%. Regardless of AFH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AFH's net profit margin of 9.64% compares favorably to the industry average.

You can view the full analysis from the report here: Atlas Financial Holdings Ratings Report

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At the close, Citizens ( CIA) was down $0.30 (4.4%) to $6.51 on light volume. Throughout the day, 31,333 shares of Citizens exchanged hands as compared to its average daily volume of 76,500 shares. The stock ranged in price between $6.50-$6.78 after having opened the day at $6.78 as compared to the previous trading day's close of $6.81.

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It primarily offers whole life insurance, endowments, credit insurance, final expense, and limited liability property policies. Citizens has a market cap of $318.5 million and is part of the financial sector. Shares are down 22.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Citizens a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Citizens as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on CIA go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 371.4% when compared to the same quarter one year prior, rising from -$0.30 million to $0.81 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CITIZENS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CITIZENS INC increased its bottom line by earning $0.11 versus $0.09 in the prior year. This year, the market expects earnings to be in line with last year ($0.11 versus $0.11).
  • The gross profit margin for CITIZENS INC is currently extremely low, coming in at 4.05%. Regardless of CIA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.41% trails the industry average.
  • In its most recent trading session, CIA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

You can view the full analysis from the report here: Citizens Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Global Indemnity ( GBLI) was another company that pushed the Insurance industry lower today. Global Indemnity was down $0.56 (2.0%) to $26.81 on average volume. Throughout the day, 15,955 shares of Global Indemnity exchanged hands as compared to its average daily volume of 17,400 shares. The stock ranged in price between $26.62-$27.24 after having opened the day at $27.24 as compared to the previous trading day's close of $27.37.

Global Indemnity, plc, through its subsidiaries, operates as a specialty property and casualty insurer. The company operates through two segments, Insurance Operations and Reinsurance Operations. Global Indemnity has a market cap of $338.2 million and is part of the financial sector. Shares are up 8.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Global Indemnity a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Global Indemnity as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on GBLI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • GBLI's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Insurance industry and the overall market, GLOBAL INDEMNITY PLC's return on equity is below that of both the industry average and the S&P 500.
  • GLOBAL INDEMNITY PLC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GLOBAL INDEMNITY PLC increased its bottom line by earning $2.45 versus $1.29 in the prior year. For the next year, the market is expecting a contraction of 48.0% in earnings ($1.28 versus $2.45).

You can view the full analysis from the report here: Global Indemnity Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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