American Financial Group (NYSE:AFG) Issues Quarterly Earnings Results

Key Points

• Earnings miss: American Financial Group reported quarterly EPS of $2.47 versus the $2.56 consensus, with a net margin of 10.30% and a return on equity of 18.64%.
• Dividend details: The company paid a quarterly dividend of $0.88 (annualized $3.52), implying a yield of about 2.7% and a payout ratio near 34.96%.
• Market and analyst reaction: Shares fell roughly 1.4% to $129.49 after the release; analysts have a consensus "Hold" rating with an average price target of $144 and mixed recent revisions.

American Financial Group (NYSE:AFG - Get Free Report) issued its earnings results on Wednesday. The insurance provider reported $2.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.56 by ($0.09), Zacks reports. American Financial Group had a net margin of 10.30% and a return on equity of 18.64%.

American Financial Group Trading Down 1.4%

AFG traded down $1.88 on Wednesday, hitting $129.49. The company had a trading volume of 536,340 shares, compared to its average volume of 616,859. The firm has a market cap of $10.76 billion, a P/E ratio of 12.86 and a beta of 0.69. American Financial Group has a 1 year low of $120.52 and a 1 year high of $150.02. The company's fifty day moving average price is $129.76 and its 200 day moving average price is $132.53. 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 Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 24th. Investors of record on Wednesday, April 15th were issued a $0.88 dividend. This represents a $3.52 annualized dividend and a yield of 2.7%. The ex-dividend date was Wednesday, April 15th. American Financial Group's payout ratio is 34.96%.

Wall Street Analyst Weigh In

AFG has been the subject of several analyst reports. Wells Fargo & Company dropped their target price on American Financial Group from $160.00 to $155.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Keefe, Bruyette & Woods upped their target price on American Financial Group from $134.00 to $140.00 and gave the company a "market perform" rating in a report on Wednesday, March 25th. Finally, Weiss Ratings upgraded American Financial Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 16th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, American Financial Group presently has an average rating of "Hold" and an average price target of $144.00.

Insider Transactions at American Financial Group

In related news, CFO Brian S. Hertzman sold 1,663 shares of the business's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $133.70, for a total value of $222,343.10. Following the sale, the chief financial officer directly owned 12,073 shares in the company, valued at approximately $1,614,160.10. The trade was a 12.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 16.90% of the company's stock.

Institutional Trading of American Financial Group

Several institutional investors and hedge funds have recently bought and sold shares of AFG. Global Retirement Partners LLC lifted its stake in American Financial Group by 904.8% during the 4th quarter. Global Retirement Partners LLC now owns 211 shares of the insurance provider's stock worth $29,000 after acquiring an additional 190 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in American Financial Group during the 4th quarter worth about $45,000. CIBC Private Wealth Group LLC lifted its stake in American Financial Group by 86.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 376 shares of the insurance provider's stock worth $51,000 after acquiring an additional 174 shares in the last quarter. Quarry LP acquired a new position in American Financial Group during the 4th quarter worth about $52,000. Finally, State of Wyoming acquired a new position in American Financial Group during the 2nd quarter worth about $57,000. 64.37% of the stock is currently owned by hedge funds and other institutional investors.

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.

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