Stock in Focus: Assured Guaranty Ltd (AGO)

Company Profile:

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. It offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. The company insures various debt obligations, including bonds issued by the United States state or municipal governmental authorities; and notes issued to finance infrastructure projects. It also insures and reinsures various types of the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, and other public finance bonds; and various types of non-United States public finance obligations comprising infrastructure finance, regulated utilities, pooled infrastructure, and other public finance obligations. In addition, the company insures and reinsures various types of the U.S. and non-U.S. Structured finance obligations, including pooled corporate obligations, residential mortgage-backed securities, insurance securitization obligations, consumer receivables securities, financial products, commercial receivables securities, and other structured finance securities. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. The company was founded in 2003 and is headquartered in Hamilton, Bermuda.

Recent News:

The company will issue its financial results press release for the second quarter ended June 30, 2020 after 4:00 p.m. Eastern Time (5:00 p.m. Atlantic Time) on Thursday, August 6, 2020.

The company reported net loss attributable to Assured Guaranty Ltd. was $55 million, or $0.59 per share, for first quarter 2020. Shareholders’ equity attributable to Assured Guaranty Ltd. per share was $69.35 as of March 31, 2020.

The company has declared a quarterly dividend of $0.20 per common share. The dividend is payable on June 3, 2020 to shareholders of record at the close of business on May 20, 2020.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

AGO’s strengths can be seen in its strong profitability and robust solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator, the RSI stands at 46.28 with positive bias. We rate Assured Guaranty Ltd (AGO) a STRONG BUY.