Fairfax Financial (OTCMKTS:FRFHF) Shares Gap Up – Time to Buy?

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $1,577.00, but opened at $1,630.23. Fairfax Financial shares last traded at $1,594.89, with a volume of 232 shares.

Analysts Set New Price Targets

Separately, Zacks Research downgraded shares of Fairfax Financial from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy”.

Fairfax Financial Stock Performance

The firm has a market cap of $33.77 billion, a P/E ratio of 7.83 and a beta of 0.48. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.66 and a current ratio of 3.66. The stock’s 50-day moving average is $1,652.90 and its 200 day moving average is $1,713.27.

Fairfax Financial (OTCMKTS:FRFHF) last posted its earnings results on Thursday, April 30th. The financial services provider reported $31.11 earnings per share for the quarter, missing the consensus estimate of $36.17 by ($5.06). The business had revenue of $7.82 billion for the quarter, compared to the consensus estimate of $8.62 billion. Fairfax Financial had a return on equity of 15.05% and a net margin of 14.16%. On average, research analysts predict that Fairfax Financial Holdings Ltd. will post 184.47 earnings per share for the current year.

About Fairfax Financial

Fairfax Financial (OTCMKTS:FRFHF) is a Toronto-based financial holding company primarily engaged in property and casualty insurance, reinsurance and investment management. The company underwrites a broad range of commercial and personal insurance products, operates specialty and run-off reinsurance businesses, and manages a diversified investment portfolio largely funded by insurance float. Fairfax conducts its insurance operations through a network of subsidiaries and affiliated companies that provide local underwriting and claims services across multiple markets.

On the insurance side, Fairfax writes a mix of short-tail and long-tail coverages across specialty lines, commercial casualty, property and other niche markets, while its reinsurance activities include treaty and facultative solutions for cedants and intermediaries.