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Citigroup rates Markel Group as Sell with a $1,683 target price

Published Nov 22, 2023 08:32PM ET Updated Nov 22, 2023 08:32PM ET
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Analysts at Citigroup have issued a Sell rating for Markel (NYSE:MKL) Group, projecting an average target price of $1,683 for the insurance specialist. This figure suggests a potential upside of nearly 19% from its last closing price of $1,409. The estimated non-GAAP earnings per share (EPS) is set at approximately $83.

Markel has experienced a slight uptick in institutional ownership, now totaling 1,121 holders, which marks an increase of about 1%. However, despite bullish indications from a put/call ratio below one (0.76), total institutional shares held have marginally declined to around 11.943 million.

Principal Financial Group (NASDAQ:PFG) has scaled back its position in Markel substantially, now holding just over 560,000 shares after a 38% cut in both share count and portfolio allocation. The MidCap Fund (PMSBX) maintains 420,000 shares with minor reductions of about 3% in both holdings and investment percentage. VTSMX has kept its stake steady at nearly 394,000 shares. Meanwhile, DAVENPORT & Co trimmed their shareholding to 308,000 but increased their investment focus on Markel by over 5%. Baillie Gifford continues to hold more than 303,000 shares despite reducing their investment portion by more than 59%.

Markel is known for its focus on niche insurance markets where it strives to lead with high-quality products and exceptional customer service.

InvestingPro Insights

In light of the recent analysis by Citigroup, providing a deeper dive into Markel Group's financial health and future prospects can offer additional context for investors. The company's strong earnings and anticipated net income growth this year, as highlighted in the InvestingPro Tips, align with the positive upside projected by Citigroup. Specifically, Markel's high return on invested capital and the expectation that management will maintain dividend payments despite not currently paying dividends, reflect a robust financial position.

The InvestingPro Data further enriches this outlook, with a notable P/E Ratio of 10.17, signaling that the stock might be reasonably valued in the current market. Moreover, the adjusted P/E Ratio for the last twelve months as of Q3 2023 stands at 9.73, potentially indicating an attractive investment opportunity. The company's revenue growth of 36.97% over the same period exemplifies its strong performance, supported by a solid gross profit margin of 49.66%.

For investors seeking additional insights, InvestingPro offers more tips on Markel, with a total of 8 tips available to subscribers. Currently, InvestingPro is offering a special Black Friday sale with discounts of up to 55% on subscriptions, providing an opportune moment for investors to access a wealth of information that could inform their investment decisions. The InvestingPro Fair Value estimate stands at $1,914.54, which surpasses the average target price set by analysts, suggesting potential undervaluation.

In conclusion, Markel's financial metrics and the optimistic outlook provided by InvestingPro Tips paint a picture of a company that is well-positioned to continue its growth trajectory and possibly deliver value to its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Citigroup rates Markel Group as Sell with a $1,683 target price
 

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