Alleghany Corporation (Y) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Alleghany Corporation (NYSE:Y) from a hold rating to a sell rating in a research note published on Thursday.

According to Zacks, “Shares of the Alleghany have underperformed the industry year to date. Escalating expenses weighing on margin expansion concern. Also, exposure to catastrophe environment induces underwriting volatility. Investment results too remain depressed owing to the still low interest rate. Estimates were revised down ahead of the earnings. Also Zacks Rank #4 when combined with Earnings ESP of 0.00% makes prediction difficult for a likely beat on when it reports second quarter results on Aug 3. Nonetheless, Alleghany’s strong performance across insurance and reinsurance operations will continue to fuel premium revenues. It strives to grow via acquisitions and organic initiatives as these not only diversify and strengthen its portfolio but also expand its international footprint. A solid balance sheet with healthy capital position supports shareholder-friendly moves and growth initiatives.”

Several other analysts have also recently weighed in on the company. BidaskClub raised Alleghany Corporation from a sell rating to a hold rating in a report on Tuesday, July 25th. Credit Suisse Group reissued a hold rating on shares of Alleghany Corporation in a report on Tuesday, July 11th.

Shares of Alleghany Corporation (NYSE Y) opened at 614.00 on Thursday. Alleghany Corporation has a 52-week low of $510.52 and a 52-week high of $667.19. The company has a market capitalization of $9.47 billion, a PE ratio of 20.97 and a beta of 0.92. The stock’s 50 day moving average price is $599.92 and its 200-day moving average price is $608.77.

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In related news, Director William K. Lavin sold 321 shares of Alleghany Corporation stock in a transaction that occurred on Tuesday, May 9th. The stock was sold at an average price of $582.50, for a total transaction of $186,982.50. Following the completion of the sale, the director now directly owns 2,499 shares of the company’s stock, valued at approximately $1,455,667.50. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 4.04% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. boosted its stake in Alleghany Corporation by 5,310.0% in the first quarter. BlackRock Inc. now owns 1,424,386 shares of the insurance provider’s stock valued at $875,513,000 after buying an additional 1,398,057 shares during the last quarter. Vanguard Group Inc. boosted its stake in Alleghany Corporation by 4.5% in the first quarter. Vanguard Group Inc. now owns 1,232,888 shares of the insurance provider’s stock valued at $757,807,000 after buying an additional 53,639 shares during the last quarter. Assenagon Asset Management S.A. purchased a new stake in Alleghany Corporation during the first quarter valued at $24,230,000. Morgan Stanley boosted its stake in Alleghany Corporation by 91.8% in the first quarter. Morgan Stanley now owns 80,197 shares of the insurance provider’s stock valued at $49,293,000 after buying an additional 38,378 shares during the last quarter. Finally, Janus Capital Management LLC boosted its stake in Alleghany Corporation by 454.7% in the first quarter. Janus Capital Management LLC now owns 41,600 shares of the insurance provider’s stock valued at $25,570,000 after buying an additional 34,100 shares during the last quarter. 81.42% of the stock is owned by institutional investors and hedge funds.

About Alleghany Corporation

Alleghany Corporation is an insurance holding company. The Company, through its subsidiary Alleghany Insurance Holdings LLC (AIHL) and its subsidiaries, is engaged in the property and casualty insurance business. AIHL’s insurance operations are conducted by its subsidiaries RSUI Group, Inc (RSUI), CapSpecialty, Inc (CapSpecialty) and Pacific Compensation Corporation (PacificComp).

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