Professional
Added to YB: 2024-10-21
Pitch date: 2024-10-18
ERIE [bearish]
Erie Indemnity Company
+39.32%
current return
Author Info
Spruce Point Capital Management is an activist investment manager specializing in forensic short-selling. Sign up for the newsletter.
Company Info
Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States.
Market Cap
$15.0B
Pitch Price
$473.53
Price Target
217.00 (-24%)
Dividend
1.91%
EV/EBITDA
17.57
P/E
23.13
EV/Sales
3.57
Sector
Insurance
Category
value
Spruce Point Capital Management Issues 'Strong Sell' Research Opinion Erie Indemnity Co. (Nasdaq: ERIE)
ERIE short: 25% management fee unsustainable as Exchange suffers $4.2B loss vs ERIE's $1.2B profit. AM Best outlook negative. Fee cut likely, resetting earnings -20%. P/E at 46x despite risks. Fair value $217-$314 (-35-55%). Lawsuits, ESG concerns, aggressive underwriting vs peers.
Read full article (4 min)