What Happened?
Shares of global reinsurance company Everest Group (NYSE: EG) fell 2.5% in the morning session after Wolfe Research initiated coverage on the stock with an 'Underperform' rating.
The research firm's analyst, Tracy Benguigui, set a price target of $287 for the company. An "Underperform" rating indicates that the analyst expects the stock to perform worse than the broader market or its industry peers. This initial assessment from a new covering analyst can significantly influence investor sentiment, as it provides a fresh, and in this case pessimistic, perspective on the company's future prospects, likely prompting some investors to sell their shares.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Everest Group? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Everest Group’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Everest Group is down 9.6% since the beginning of the year, and at $328.41 per share, it is trading 19.3% below its 52-week high of $407.04 from October 2024. Investors who bought $1,000 worth of Everest Group’s shares 5 years ago would now be looking at an investment worth $1,592.
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