American Financial Group (NYSE:AFG) Releases Earnings Results

Key Points

• American Financial Group reported adjusted earnings of $2.82 per share, beating analyst expectations of $2.32 by $0.50. The company posted a 19.50% return on equity and a 10.76% net margin.
• AFG shares traded at $140.58, with a market capitalization of $11.68 billion and a price-to-earnings ratio of 13.36. Analysts maintain a consensus “Hold” rating, with an average price target of $150.75.
• The company declared a quarterly dividend of $0.88 per share, equivalent to $3.52 annually and a 2.5% yield. Institutional investors own 64.37% of outstanding shares, while insiders recently reported stock sales.

American Financial Group (NYSE:AFG - Get Free Report) announced its quarterly earnings results on Tuesday. The insurance provider reported $2.82 earnings per share for the quarter, beating the consensus estimate of $2.32 by $0.50, Zacks reports. American Financial Group had a return on equity of 19.50% and a net margin of 10.76%.

American Financial Group Stock Performance

AFG traded down $1.34 during trading on Tuesday, hitting $140.58. 453,122 shares of the stock were exchanged, compared to its average volume of 557,517. The stock has a fifty day moving average price of $137.58 and a two-hundred day moving average price of $132.97. The firm has a market capitalization of $11.68 billion, a P/E ratio of 13.36 and a beta of 0.62. American Financial Group has a 1-year low of $122.88 and a 1-year high of $150.02. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 0.39.

American Financial Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Wednesday, July 15th were given a dividend of $0.88 per share. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $3.52 annualized dividend and a yield of 2.5%. American Financial Group's payout ratio is 33.46%.

Analyst Ratings Changes

AFG has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods lifted their price target on American Financial Group from $140.00 to $148.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 8th. Piper Sandler lifted their target price on American Financial Group from $135.00 to $140.00 and gave the company a "neutral" rating in a research report on Tuesday, May 26th. Wells Fargo & Company increased their price objective on shares of American Financial Group from $158.00 to $173.00 and gave the stock an "overweight" rating in a research report on Thursday, July 9th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of American Financial Group in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, American Financial Group has a consensus rating of "Hold" and an average price target of $150.75.

Insider Transactions at American Financial Group

In other news, SVP Michelle A. Gillis sold 2,247 shares of the company's stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $139.00, for a total value of $312,333.00. Following the completion of the sale, the senior vice president directly owned 13,135 shares of the company's stock, valued at approximately $1,825,765. This represents a 14.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider David Lawrence Thompson, Jr. sold 11,370 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $135.05, for a total value of $1,535,518.50. Following the sale, the insider directly owned 584,098 shares of the company's stock, valued at $78,882,434.90. The trade was a 1.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 16.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Cetera Investment Advisers lifted its position in shares of American Financial Group by 1.1% in the 4th 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 raised its position in American Financial Group by 0.7% in the 4th quarter. Commonwealth Equity Services LLC now owns 17,641 shares of the insurance provider's stock worth $2,411,000 after buying an additional 121 shares during the last quarter. Public Employees Retirement System of Ohio boosted its holdings 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 worth $3,235,000 after purchasing an additional 124 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in shares of American Financial Group by 2.1% in the 3rd 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. grew its stake in shares of American Financial Group by 16.0% during the 4th quarter. UMB Bank n.a. now owns 943 shares of the insurance provider's stock valued at $129,000 after purchasing an additional 130 shares during the period. Institutional investors and hedge funds own 64.37% of the company's stock.

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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