Pro-Assurance Stock Story

PRA
 Stock
  

USD 23.89  0.26  1.10%   

It looks like Chubb will continue to recover much faster as its share price surged up 0.53% today to Pro-Assurance Corp's 3.4614%. As many rational traders are trying to avoid financial services space, it makes sense to go over Pro-Assurance Corp a little further and understand how it stands against Chubb and other similar entities. We are going to analyze some of the competitive aspects of both Pro-Assurance and Chubb.
Published over three months ago
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Pro-Assurance Corp Current Investor Sentiment

Investor biases related to Pro-Assurance Corp's public news can be used to forecast risks associated with investment in Pro-Assurance. The trend in average sentiment can be used to explain how an investor holding Pro-Assurance can time the market purely based on public headlines and social activities around Pro-Assurance Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Pro-Assurance Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Pro-Assurance Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Pro-Assurance Corp's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Pro-Assurance Corp.
Are retail investors taking in Pro Assurance Corp (NYSE:PRA) or Chubb?
By analyzing existing basic indicators between Pro-Assurance Corp and Chubb, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Chubb with a short position in Pro-Assurance Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pro-Assurance Corp has an asset utilization ratio of 21.2 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that Pro-Assurance Corp is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Pro-Assurance Corp's Liquidity

Pro-Assurance Corp financial leverage refers to using borrowed capital as a funding source to finance Pro-Assurance Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pro-Assurance Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Pro-Assurance Corp's total debt and its cash.

How does Pro-Assurance utilize its cash?

To perform a cash flow analysis of Pro-Assurance Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Pro-Assurance Corp is receiving and how much cash it distributes out in a given period. The Pro-Assurance Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Pro-Assurance Corp Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 73.97 Million

Acquisition by Scott Syphax of tradable shares of Pro-Assurance Corp subject to Rule 16b-3

Legal trades by Pro-Assurance Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Pro-Assurance insider trading alert for grant of common stock by Scott Syphax, the corporate stakeholder, on 7th of April 2022. This event was filed by Proassurance Corp with SEC on 2022-04-07. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Pro-Assurance Corp revenue. Based on the latest financial disclosure, Pro-Assurance Corp reported 1.04 B of revenue. This is 90.72% lower than that of the Financial Services sector and significantly higher than that of the Insurance—Property & Casualty industry. The revenue for all United States stocks is 88.98% higher than that of Pro-Assurance Corp. As for Chubb we see revenue of 40.37 B, which is much higher than that of the Insurance—Property & Casualty

CB
40.4 B
PRA1.04 Billion2.51
Sector0.00.0
CB40.37 Billion97.49

Pro-Assurance Corp implied volatility may change after the rise

Current Treynor Ratio is up to 0.02. Price may slip again. Pro-Assurance Corp has relatively low volatility with skewness of -0.19 and kurtosis of -0.49. However, we advise all investors to independently investigate Pro-Assurance Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pro-Assurance Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pro-Assurance Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Pro-Assurance Corp Implied Volatility

Pro-Assurance Corp's implied volatility exposes the market's sentiment of Pro-Assurance Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Pro-Assurance Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Pro-Assurance Corp stock will not fluctuate a lot when Pro-Assurance Corp's options are near their expiration.

Our Conclusion on Pro-Assurance Corp

Whereas other companies within the insurance—property & casualty industry are still a little expensive, even after the recent corrections, Pro-Assurance Corp may offer a potential longer-term growth to investors. To conclude, as of the 20th of February 2022, our analysis shows that Pro-Assurance Corp follows the market closely. The company is undervalued and projects below average probability of financial unrest for the next 2 years. Our present 90 days buy-sell recommendation on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Pro-Assurance Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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