On May 8, 2026, Roth Capital downgraded Assured Guaranty Ltd. (NYSE: AGO) to a Neutral rating from Buy, setting a new price target of $80.00. Assured Guaranty Ltd. provides financial guaranty insurance, which guarantees payments on debt for public finance and other sectors, making those investments more secure for buyers.
The stock downgrade occurred even as Assured Guaranty Ltd. announced quarterly earnings of $2.50 per share. This result was well above the Zacks Consensus Estimate of $1.50 per share. However, the earnings are lower than the $3.18 per share reported in the same quarter of the previous year.
A potential factor in the rating change could be Assured Guaranty Ltd.'s revenue. For the quarter, Assured Guaranty Ltd. reported revenues of $182 million. This figure missed analyst expectations and was down from the $239 million reported in the year-ago quarter, showing a significant year-over-year decline in total income.
Despite this, as highlighted by Business Wire, the company's CEO called it a "strong first quarter." This is based on growth in new business, with Gross Written Premium (GWP) doubling to $70 million. GWP is the total premium an insurer writes before any deductions for reinsurance are made.
The company also reported shareholders’ equity per share at $124.28 as of March 31, 2026. This book value is notably higher than both the stock's trading price of $82.52 at the time of the downgrade and Roth Capital's new price target of $80.00.
