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Presidential Life Corp. Up 36.8% Today After Acquisition Agreement

July 13, 2012 | About:
Dividend Growth Investor

GuruFocus

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Presidential Life Corp. is up 36.8% today, after the company announced that it agreed to be acquired by Athene Annuity and Life Insurance Company for $415 million in cash. Shareholders will receive $14 a share, which caused the stock to reach its highest point since 2008. The deal is expected to be closed later this year.

Presidential Life Corp. is an insurance holding company that, through its wholly owned subsidiary Presidential Life Insurance Company, operates principally in a single business segment with two primary lines of business-individual annuities and individual life insurance. Presidential Life Corp. has a market cap of $291 million; its shares were traded at around $13.9 with a P/E ratio of 8.2 and P/S ratio of 1.1. The dividend yield of Presidential Life Corp. stocks is 2.5%.

One guru has a stake in Presidential Life Corp. Michael Price owns 160,700 shares as of 03/31/2012, which accounts for 0.26% of the $703 million portfolio of MFP Investors LLC. No insiders have recently traded in the company. PLFE has a predictability rating of 1 star.

Presidential Life Corp. has an average annual revenue growth rate of -10.9% a year. Earnings per share were positive for 9 out of the last 10 years, but heavily fluctuate year to year. The company holds $112 million in cash and has no long-term debt.

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