Why Everest Group Stock Was Wilting This Week

Core Insights - Everest Group's stock has seen a decline of over 11% week-to-date due to disappointing third-quarter earnings that did not meet expectations [1] Financial Performance - Total revenue for the third quarter was $4.32 billion, only marginally higher than the same quarter in 2024 [2] - Operating income fell significantly, dropping nearly 50% to $316 million ($7.54 per share) [2] - Everest missed the average analyst estimate for adjusted profit, which was $14.31 per share, and also fell short on revenue expectations of $4.45 billion [3] Key Metrics - The combined ratio, a critical financial metric for the insurance industry, increased to 103.4%, up from 93.1% in the third quarter of 2024, indicating a decline in underwriting profitability [4] Analyst Reactions - Following the earnings report, four analysts revised their outlook on Everest, with three lowering their price targets and one upgrading to a hold recommendation [5] - The most significant price target reduction came from Wells Fargo's Elyse Greenspan, who adjusted her target from $383 to $343 per share while maintaining a hold rating [6]