American Financial Group (NYSE:AFG) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Key Points

• EPS miss: American Financial Group reported Q EPS of $2.47, missing the consensus by $0.08 (consensus $2.55), with revenue of $1.66B versus $1.72B expected and revenue down 0.1% year-over-year.
• Dividend and profitability: The firm paid a quarterly dividend of $0.88 (annualized $3.52, yield 2.7%) and posted solid profitability metrics, including a return on equity of 18.64% and a net margin of 10.30%.
• Market sentiment and ownership: Analysts hold a consensus "Hold" with a $144 average price target (mixed recent actions from Wells Fargo and KBW), the CFO sold 1,663 shares, and institutional investors own about 64.37% of the stock.

American Financial Group (NYSE:AFG - Get Free Report) issued its earnings results on Wednesday. The insurance provider reported $2.47 earnings per share for the quarter, missing the consensus estimate of $2.55 by ($0.08), Zacks reports. The business had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.72 billion. American Financial Group had a return on equity of 18.64% and a net margin of 10.30%.American Financial Group's revenue was down .1% on a year-over-year basis. During the same period last year, the business posted $1.81 EPS.

American Financial Group Price Performance

Shares of NYSE AFG opened at $129.49 on Thursday. The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.38. American Financial Group has a twelve month low of $120.52 and a twelve month high of $150.02. The stock has a 50 day moving average of $129.76 and a two-hundred day moving average of $132.51. The stock has a market cap of $10.76 billion, a P/E ratio of 12.86 and a beta of 0.69.

American Financial Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, April 24th. Shareholders of record on Wednesday, April 15th were given a dividend of $0.88 per share. The ex-dividend date of this dividend was Wednesday, April 15th. This represents a $3.52 annualized dividend and a yield of 2.7%. American Financial Group's payout ratio is 34.96%.

Insider Activity

In other news, CFO Brian S. Hertzman sold 1,663 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $133.70, for a total transaction of $222,343.10. Following the transaction, the chief financial officer directly owned 12,073 shares in the company, valued at approximately $1,614,160.10. This trade represents a 12.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 16.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. EP Wealth Advisors LLC purchased a new position in shares of American Financial Group during the fourth quarter worth about $373,000. Millennium Management LLC increased its holdings in shares of American Financial Group by 194.9% in the fourth quarter. Millennium Management LLC now owns 253,932 shares of the insurance provider's stock valued at $34,707,000 after purchasing an additional 167,834 shares during the period. Man Group plc increased its holdings in shares of American Financial Group by 0.4% in the fourth quarter. Man Group plc now owns 199,354 shares of the insurance provider's stock valued at $27,248,000 after purchasing an additional 826 shares during the period. Investment Management Corp of Ontario raised its stake in shares of American Financial Group by 43.9% during the fourth quarter. Investment Management Corp of Ontario now owns 4,520 shares of the insurance provider's stock worth $618,000 after purchasing an additional 1,380 shares during the last quarter. Finally, Janus Henderson Group PLC raised its stake in shares of American Financial Group by 30.1% during the fourth quarter. Janus Henderson Group PLC now owns 5,190 shares of the insurance provider's stock worth $709,000 after purchasing an additional 1,200 shares during the last quarter. 64.37% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have commented on AFG. Wells Fargo & Company dropped their price target on shares of American Financial Group from $160.00 to $155.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. Weiss Ratings upgraded shares of American Financial Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 16th. Finally, Keefe, Bruyette & Woods upped their target price on shares of American Financial Group from $134.00 to $140.00 and gave the company a "market perform" rating in a report on Wednesday, March 25th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $144.00.

About American Financial Group

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.