Fairfax Financial (OTCMKTS:FRFHF) Stock Passes Below 50 Day Moving Average - Should You Sell?

Key Points

• Fairfax Financial shares fell below their 50-day moving average of $1,755.56, trading as low as $1,699.42 during Monday's session.
• Analysts have mixed ratings on Fairfax Financial; while Royal Bank of Canada upgraded to a "moderate buy," Cormark downgraded to "hold," resulting in a consensus rating of "Moderate Buy."
• The company reported a quarterly earnings per share (EPS) of $61.61, surpassing expectations, despite a slight miss in revenue compared to analyst forecasts.

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report)'s share price passed below its fifty day moving average during trading on Monday . The stock has a fifty day moving average of $1,755.56 and traded as low as $1,699.42. Fairfax Financial shares last traded at $1,713.69, with a volume of 9,938 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Royal Bank Of Canada upgraded shares of Fairfax Financial to a "moderate buy" rating in a research report on Wednesday, June 18th. Wall Street Zen upgraded shares of Fairfax Financial from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Finally, Cormark lowered shares of Fairfax Financial from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, August 6th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,500.00.

Fairfax Financial Stock Performance

The company has a quick ratio of 4.20, a current ratio of 4.20 and a debt-to-equity ratio of 0.45. The stock has a market capitalization of $39.62 billion, a price-to-earnings ratio of 8.93 and a beta of 0.83. The stock's 50-day simple moving average is $1,753.09 and its 200 day simple moving average is $1,622.91.

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The financial services provider reported $61.61 earnings per share for the quarter, topping the consensus estimate of $60.25 by $1.36. The firm had revenue of $9.18 billion for the quarter, compared to analysts' expectations of $9.30 billion. Fairfax Financial had a net margin of 14.68% and a return on equity of 16.39%. Analysts expect that Fairfax Financial Holdings Ltd. will post 166.85 earnings per share for the current fiscal year.

Fairfax Financial Company Profile

Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Property and Casualty Insurance and Reinsurance, Life insurance and Run-off, and Non-Insurance Companies segments.