Everest Group Faces Investor Lawsuit Scrutiny as Analysts Lift Price Targets
Everest Group, Ltd. faces ongoing shareholder litigation over casualty reserves, even as Wall Street analysts update price targets and the board declares a $2.00 quarterly dividend.
Law firms continue to publicize a securities class action lawsuit against Everest Group, Ltd. pending in the Southern District of New York. The legal complaint covers common stock purchases made from February 8, 2024, through October 27, 2025. Plaintiffs allege that the insurer made misleading assurances regarding the adequacy of reserves for its U.S. casualty business written from 2020 onward.
The lawsuit highlights that internal reserve charges greatly exceeded early Wall Street expectations. While an initial forecast by Raymond James anticipated a charge of up to $360 million, Everest revealed a $1.7 billion charge on January 27, 2025, with roughly $1.3 billion tied to accident years between 2020 and 2024. On October 27, 2025, the company posted an additional $478 million in net unfavorable prior-year reserve adjustments, established a $1.2 billion adverse development protection agreement on roughly $5.4 billion in reserves, and handed over rights to approximately $2 billion in annual renewal premiums to AIG. EG shares declined $39.07, or 11.4%, to $304.91 following those announcements. Investors have until December 27 or December 28, 2026, to apply for lead plaintiff status.
The legal developments arrive on the heels of softer quarterly financial results reported on October 28. Everest generated earnings per share of $7.62, missing the analyst consensus expectation of $9.38. Revenue dropped 14.0% compared to the prior-year period to $3.71 billion, falling short of the projected $3.81 billion. Despite the shortfall, the company declared a regular quarterly dividend of $2.00 per share on November 4, which is set for payment on December 18 to shareholders of record as of December 4.
Equity research brokerages have responded by lifting price targets on Everest shares. Citigroup raised its target from $415.00 to $445.00 while keeping a neutral rating. Wells Fargo increased its valuation target from $396.00 to $428.00 with an equal weight rating, and Cantor Fitzgerald moved its target from $390.00 to $419.00. Keefe, Bruyette & Woods lifted its target from $407.00 to $450.00 with an outperform rating, and Royal Bank of Canada boosted its target from $455.00 to $475.00. According to MarketBeat, the stock maintains a consensus rating of Hold with an average target price of $426.27.
Recent filings also show shifting ownership levels across key stakeholders. In the third quarter, Vise Technologies Inc. grew its stake by 166.7% to 4,139 shares, while Sumitomo Mitsui Trust Group Inc. reduced its holding by 11.0% to 83,666 shares. Separately, Director Laura Hay sold 144 shares on November 4 at an average price of $418.78 under a pre-arranged Rule 10b5-1 plan.