Oxbridge Re Holdings Ltd (NASDAQ: OXBR) is rocketing in the market today with gains that are better described in multiples than percentages. The movement comes after the company announced loss estimates associated with Hurricane Michael and California wildfires.
Moreover, the company said that it will be reporting its earnings relatively soon. The news excited investors who are pushing the stock for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from OXBR stock as a result; and
- what we’ll be watching for ahead.
OXBR Announces Loss Estimates And Coming Financial Results
As mentioned above, Oxbridge Re Holdings is flying in the market this morning after announcing loss estimates. Investors were expecting large losses associated with damages from Hurricane Michael and wildfires in California.
In the release, OXBR said that it expects that the fourth quarter results will include approximately $3.1 million in losses associated with Hurricane Michael. The company is also expecting to report approximately $2.9 million in losses associated with California wildfires.
The company said that these estimates come after considering its quote-share arrangement through its reinsurance sidecar, Oxbridge Re NS. Based on these estimates, total notable losses are expected to impact the fourth quarter results bya bout $6 million.
While that sounds like quite a bit, this figure is a bit less than investors were expecting, leading to the excitement that’s pushing the stock up.
Also, OXBR said that it plans on holding a conference call to discuss results for the fourth quarter. The call will be held on Tuesday, March 19, 2019 at 4:30 p.m. Eastern time. The company also said that financial results will be released after the close of the market on the same day.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Oxbridge Re Holdings, the news proved to be incredibly positive.
After all, losses associated with wildfires and Hurricane Michael were lower than expected. This, combined with excitement surrounding the coming financial report is sending the stock screaming for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:29), OXBR is trading at $2.22 per share after a gain of $1.25 per share or 130.21% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OXBR. In particular, we’re interested in following the story surrounding the company’s continued work to recover from recent natural disasters and get back to growing value for investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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