American Financial Group (NYSE:AFG) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• American Financial Group has been downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating.
• Jefferies Financial Group recently raised its target price for the company from $125.00 to $130.00, while other analysts adjust their ratings, indicating varied opinions on the stock's potential.
• The company's recent earnings beat analyst expectations with an EPS of $2.14, although it fell short on revenue, reporting $1.65 billion against an estimate of $1.77 billion.

Wall Street Zen downgraded shares of American Financial Group (NYSE:AFG - Free Report) from a hold rating to a sell rating in a research report released on Saturday morning.

Several other research firms have also issued reports on AFG. Keefe, Bruyette & Woods reduced their price target on American Financial Group from $127.00 to $124.00 and set a "market perform" rating on the stock in a research report on Tuesday, August 12th. Jefferies Financial Group raised their price target on American Financial Group from $125.00 to $130.00 and gave the stock a "hold" rating in a research report on Monday, August 11th. Four analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $136.75.

American Financial Group Price Performance

Shares of American Financial Group stock traded up $1.44 during trading on Friday, hitting $138.86. 63,348 shares of the stock traded hands, compared to its average volume of 494,703. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 0.33. The stock has a market cap of $11.58 billion, a price-to-earnings ratio of 15.27 and a beta of 0.73. The firm's fifty day moving average is $128.94 and its 200-day moving average is $126.45. American Financial Group has a 52 week low of $114.73 and a 52 week high of $150.19.

American Financial Group (NYSE:AFG - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The insurance provider reported $2.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.08 by $0.06. American Financial Group had a return on equity of 17.41% and a net margin of 9.21%.The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.77 billion. During the same period last year, the company earned $2.56 EPS. American Financial Group's revenue for the quarter was up 1.3% compared to the same quarter last year. Research analysts expect that American Financial Group will post 10.5 EPS for the current fiscal year.

American Financial Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Tuesday, July 15th were issued a $0.80 dividend. The ex-dividend date was Tuesday, July 15th. This represents a $3.20 annualized dividend and a yield of 2.3%. American Financial Group's dividend payout ratio (DPR) is 35.16%.

Insiders Place Their Bets

In other American Financial Group news, Director Stephen Craig Lindner, Jr. sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $134.31, for a total value of $1,343,100.00. Following the completion of the sale, the director owned 326,730 shares in the company, valued at approximately $43,883,106.30. This trade represents a 2.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 17.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in AFG. Charles Schwab Investment Management Inc. lifted its stake in shares of American Financial Group by 395.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,520,714 shares of the insurance provider's stock valued at $331,071,000 after purchasing an additional 2,012,027 shares during the period. Norges Bank purchased a new position in shares of American Financial Group in the 2nd quarter valued at approximately $106,707,000. AQR Capital Management LLC raised its stake in American Financial Group by 240.0% during the first quarter. AQR Capital Management LLC now owns 585,841 shares of the insurance provider's stock valued at $76,821,000 after buying an additional 413,516 shares during the last quarter. Vestor Capital LLC raised its stake in American Financial Group by 64,631.3% during the second quarter. Vestor Capital LLC now owns 388,388 shares of the insurance provider's stock valued at $49,018,000 after buying an additional 387,788 shares during the last quarter. Finally, Nuveen LLC purchased a new position in American Financial Group during the first quarter valued at $30,442,000. Hedge funds and other institutional investors own 64.37% of the company's stock.

American Financial Group Company Profile

American Financial Group, Inc, an insurance holding company, provides specialty property and casualty insurance products in the United States. The company offers property and transportation insurance products, such as physical damage and liability coverage for buses and trucks, inland and ocean marine, agricultural-related products, and other commercial property and specialty transportation coverages; specialty casualty insurance, including primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers' compensation insurance; and specialty financial insurance products comprising risk management insurance programs for lending and leasing institutions, fidelity and surety products, and trade credit insurance.