American Financial Group (NYSE:AFG) Issues Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Key Points

• American Financial Group beat earnings expectations, reporting quarterly EPS of $3.97 versus the $3.80 consensus estimate.
• The company raised its quarterly dividend to $0.97 per share from $0.88, equivalent to an annualized dividend of $3.88 and a 2.5% yield.
• Analyst views remain mixed: the stock has an average “Hold” rating and an average price target of $152.75.

American Financial Group (NYSE:AFG - Get Free Report) issued its earnings results on Tuesday. The insurance provider reported $3.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.80 by $0.17, Zacks reports. American Financial Group had a return on equity of 20.35% and a net margin of 11.51%.

American Financial Group Price Performance

Shares of NYSE:AFG traded down $2.11 during midday trading on Tuesday, hitting $153.06. 725,679 shares of the stock were exchanged, compared to its average volume of 504,195. The stock has a market cap of $12.69 billion, a P/E ratio of 13.38 and a beta of 0.55. The company has a current ratio of 0.49, a quick ratio of 0.49 and a debt-to-equity ratio of 0.38. American Financial Group has a twelve month low of $123.09 and a twelve month high of $156.24. The company has a 50 day moving average price of $144.01 and a 200-day moving average price of $136.54.

American Financial Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Thursday, October 15th were paid a dividend of $0.97 per share. This is a boost from American Financial Group's previous quarterly dividend of $0.88. The ex-dividend date of this dividend was Thursday, October 15th. This represents a $3.88 annualized dividend and a dividend yield of 2.5%. American Financial Group's dividend payout ratio is presently 33.92%.

Insider Transactions at American Financial Group

In other American Financial Group news, VP Mark A. Weiss sold 2,813 shares of American Financial Group stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $144.76, for a total transaction of $407,209.88. Following the completion of the transaction, the vice president owned 6,648 shares in the company, valued at approximately $962,364.48. The trade was a 29.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Brian S. Hertzman sold 950 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $142.87, for a total transaction of $135,726.50. Following the completion of the sale, the chief financial officer directly owned 11,123 shares in the company, valued at $1,589,143.01. This trade represents a 7.87% decrease in their position. The SEC filing for this sale provides additional information. 16.90% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have commented on AFG. Wells Fargo & Company decreased their target price on shares of American Financial Group from $175.00 to $166.00 and set an "overweight" rating on the stock in a research report on Monday, October 12th. Piper Sandler raised their price objective on shares of American Financial Group from $140.00 to $156.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Wall Street Zen raised shares of American Financial Group from a "hold" rating to a "buy" rating in a report on Saturday, October 17th. 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. Finally, Keefe, Bruyette & Woods lowered their target price on shares of American Financial Group from $153.00 to $147.00 and set a "market perform" rating on the stock in a research report on Monday, October 12th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $152.75.

American Financial Group Company Profile

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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