MetLife Receives Rating Upgrade Following Strong Earnings and Revenue Growth
MetLife earned an upgraded grade in Stock Grader following quarterly results that beat expectations. Analysts maintain a positive consensus as institutional investors adjust their holdings.
Louis Navellier's Stock Grader upgraded MetLife, Inc. (MET) from a B to an A, moving the insurer from Strong to Very Strong, according to a report by InvestorPlace. The assessment paired an A in Quantitative Grade with a B in Fundamental Grade. The service highlighted strength in operating margin growth, earnings growth, and free cash flow, alongside weaker scores in earnings momentum and earnings surprises.
The rating improvement comes shortly after MetLife reported its latest quarterly results on November 4th. The company posted earnings per share of $2.78, beating consensus expectations of $2.77, while revenue rose 18.2% year over year to $20.52 billion, above the forecasted $19.86 billion. Growth was supported by investment income and group-benefits performance, resulting in $1.8 billion in adjusted profit. However, reports also noted headwinds such as rising expenses, actuarial adjustments, and softer sales in Asia.
Wall Street analysts continue to hold a constructive outlook. MarketBeat reported that brokerages maintain a consensus Moderate Buy rating on the stock, with average price targets ranging between $105.44 and $106.62. Recent target increases include TD Cowen lifting its target to $114.00, JPMorgan Chase & Co. raising its target to $110.00, and Morgan Stanley setting a target of $111.00.
Regulatory filings revealed varied activity among large institutional shareholders during the third quarter. Candriam S.C.A. reduced its stake by 36.0% to 79,742 shares, and Private Management Group Inc. lowered its holdings by 17.5% to 288,376 shares. Meanwhile, other institutions increased their positions, such as Eurizon Capital SGR S.p.A. adding 306,277 shares and Russell Investments Group Ltd. buying 58,571 shares.
In addition to operational growth, MetLife's board approved a $3 billion share repurchase plan on August 5th, authorizing the buyback of up to 4.8% of its outstanding stock. The company also declared a quarterly dividend of $0.5925 per share payable on December 8th to shareholders of record as of November 3rd.