Wells Fargo & Company Forecasts Strong Price Appreciation for American Financial Group (NYSE:AFG) Stock

Key Points

• Wells Fargo raised its price target on American Financial Group to $180 from $166 and maintained an “overweight” rating, implying 13.32% potential upside from the prior close.
• AFG beat third-quarter estimates, reporting EPS of $3.97 versus $3.80 expected and revenue of $2.58 billion versus $2.40 billion expected. It also declared a one-time special dividend of $3.50 per share, payable November 25.
• Analyst views remain mixed: MarketBeat’s consensus rating is “Hold,” with an average price target of $156.25. The quarter also included $47 million in after-tax non-core losses, and the property-and-casualty combined ratio worsened to 94%.

American Financial Group (NYSE:AFG - Get Free Report) had its target price increased by equities researchers at Wells Fargo & Company from $166.00 to $180.00 in a report released on Thursday, Benzinga reports. The brokerage currently has an "overweight" rating on the insurance provider's stock. Wells Fargo & Company's target price would suggest a potential upside of 13.32% from the stock's previous close.

AFG has been the subject of a number of other research reports. Piper Sandler lifted their target price on American Financial Group from $140.00 to $156.00 and gave the company a "neutral" rating in a report on Monday, August 10th. Weiss Ratings upgraded shares of American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, August 11th. Keefe, Bruyette & Woods reduced their price objective on shares of American Financial Group from $153.00 to $147.00 and set a "market perform" rating for the company in a research note on Monday, October 12th. Finally, Wall Street Zen raised shares of American Financial Group from a "hold" rating to a "buy" rating in a research note on Saturday, October 17th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, American Financial Group presently has an average rating of "Hold" and a consensus target price of $156.25.

American Financial Group Stock Up 2.6%

Shares of NYSE:AFG opened at $158.85 on Thursday. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.49 and a quick ratio of 0.49. The company has a market capitalization of $13.17 billion, a PE ratio of 12.99 and a beta of 0.55. The business has a fifty day moving average price of $144.40 and a two-hundred day moving average price of $136.76. American Financial Group has a 1 year low of $123.09 and a 1 year high of $158.09.

American Financial Group (NYSE:AFG - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The insurance provider reported $3.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.17. The firm had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.40 billion. American Financial Group had a return on equity of 22.50% and a net margin of 11.96%. During the same quarter in the prior year, the business posted $2.69 earnings per share. Analysts forecast that American Financial Group will post 12.29 earnings per share for the current year.

Insider Buying and Selling at American Financial Group

In related news, CFO Brian Hertzman sold 950 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $142.87, for a total value of $135,726.50. Following the sale, the chief financial officer directly owned 11,123 shares of the company's stock, valued at $1,589,143.01. This trade represents a 7.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 16.90% of the company's stock.

Institutional Trading of American Financial Group

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in American Financial Group during the 2nd quarter valued at approximately $1,079,329,000. Bank of New York Mellon Corp purchased a new stake in American Financial Group in the 2nd quarter worth approximately $102,590,000. Bank of America Corp DE bought a new stake in shares of American Financial Group in the 2nd quarter worth approximately $53,939,000. Arrowstreet Capital Limited Partnership grew its position in shares of American Financial Group by 337.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 431,144 shares of the insurance provider's stock worth $55,061,000 after buying an additional 332,517 shares during the last quarter. Finally, First Trust Advisors LP grew its position in shares of American Financial Group by 433.2% in the 1st quarter. First Trust Advisors LP now owns 316,974 shares of the insurance provider's stock worth $40,481,000 after buying an additional 257,522 shares during the last quarter. Hedge funds and other institutional investors own 64.37% of the company's stock.

More American Financial Group News

Here are the key news stories impacting American Financial Group this week:

• Positive Sentiment: AFG’s adjusted third-quarter earnings were $3.97 per share, above the $3.80 analyst consensus, while revenue of $2.58 billion exceeded estimates of $2.40 billion. Net earnings rose to $282 million from $215 million a year earlier. Company earnings release
• Positive Sentiment: The company declared a one-time special cash dividend of $3.50 per share, payable November 25 to shareholders of record November 16. The payout adds a notable near-term return for shareholders. Special dividend announcement
• Negative Sentiment: Reported net income included $47 million, or $0.57 per share, in after-tax non-core losses—more than the $9 million loss in the year-ago quarter. The P&C combined ratio also worsened by 0.9 percentage points to 94%, though it remained below 100%. Combined ratio report

About American Financial Group

American Financial Group, Inc NYSE: AFG is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group operations, the company primarily provides property and casualty insurance, with an emphasis on specialty commercial products and markets.

Its insurance offerings serve businesses, organizations and individuals across a range of industries. Product lines have included commercial property and liability coverage, workers' compensation, transportation, agriculture and crop insurance, marine and other specialty risks.

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