American Financial Group (NYSE:AFG) Releases Earnings Results, Beats Estimates By $0.50 EPS

American Financial Group (NYSE:AFG) announced its quarterly earnings results on Tuesday. The insurance provider reported $2.82 EPS for the quarter, beating the consensus estimate of $2.32 by $0.50, Zacks reports. The company had revenue of $2.03 billion for the quarter, compared to analyst estimates of $1.85 billion. American Financial Group had a net margin of 11.51% and a return on equity of 20.43%. The firm’s revenue was up 5.5% on a year-over-year basis. During the same period in the prior year, the firm posted $2.14 earnings per share.

American Financial Group Trading Down 1.2%

Shares of NYSE:AFG traded down $1.80 during trading on Thursday, reaching $144.93. 140,546 shares of the stock were exchanged, compared to its average volume of 555,288. The firm has a market cap of $12.04 billion, a price-to-earnings ratio of 12.68 and a beta of 0.62. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.48 and a current ratio of 0.48. American Financial Group has a 12-month low of $123.09 and a 12-month high of $150.02. The firm’s 50-day moving average price is $137.93 and its 200 day moving average price is $133.14.

American Financial Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Wednesday, July 15th were paid a $0.88 dividend. This represents a $3.52 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Wednesday, July 15th. American Financial Group’s payout ratio is currently 33.46%.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of American Financial Group in a research note on Thursday, June 11th. Wells Fargo & Company lifted their price target on shares of American Financial Group from $158.00 to $173.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Keefe, Bruyette & Woods boosted their price objective on shares of American Financial Group from $140.00 to $148.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 8th. Finally, Piper Sandler raised their price target on American Financial Group from $135.00 to $140.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 26th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, American Financial Group presently has an average rating of “Hold” and a consensus target price of $150.75.

Insiders Place Their Bets

In related news, SVP Michelle A. Gillis sold 2,247 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $139.00, for a total transaction of $312,333.00. Following the sale, the senior vice president directly owned 13,135 shares in the company, valued at approximately $1,825,765. This trade represents a 14.61% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider David Lawrence Thompson, Jr. sold 11,370 shares of American Financial Group stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $135.05, for a total transaction of $1,535,518.50. Following the sale, the insider owned 584,098 shares in the company, valued at $78,882,434.90. This represents a 1.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 16.90% of the company’s stock.

Institutional Investors Weigh In On American Financial Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cetera Investment Advisers grew its stake in shares of American Financial Group by 1.1% during the fourth quarter. Cetera Investment Advisers now owns 9,030 shares of the insurance provider’s stock worth $1,234,000 after purchasing an additional 100 shares during the period. Commonwealth Equity Services LLC lifted its stake in American Financial Group by 0.7% in the fourth quarter. Commonwealth Equity Services LLC now owns 17,641 shares of the insurance provider’s stock valued at $2,411,000 after buying an additional 121 shares during the period. Public Employees Retirement System of Ohio lifted its stake in American Financial Group by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 22,202 shares of the insurance provider’s stock valued at $3,235,000 after buying an additional 124 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in American Financial Group by 2.1% during the third quarter. Mercer Global Advisors Inc. ADV now owns 6,150 shares of the insurance provider’s stock worth $896,000 after buying an additional 129 shares during the last quarter. Finally, UMB Bank n.a. boosted its holdings in American Financial Group by 16.0% during the fourth quarter. UMB Bank n.a. now owns 943 shares of the insurance provider’s stock worth $129,000 after buying an additional 130 shares during the last quarter. Hedge funds and other institutional investors own 64.37% of the company’s stock.

American Financial Group Company Profile

American Financial Group, Inc (NYSE: AFG) is a diversified holding company primarily engaged in property and casualty insurance and reinsurance. Through its flagship subsidiary, Great American Insurance Company, the firm underwrites a broad range of specialty insurance products for commercial and industrial clients, including inland marine, excess and surplus lines, executive liability, and environmental liability coverage. In addition, American Financial Group offers supplemental accident and health insurance and assumes reinsurance risks from other insurers, helping to diversify its underwriting portfolio.

The company traces its roots to 1946, when it was founded by Carl Lindner, Sr.