Fairfax Financial (OTCMKTS:FRFHF) Shares Down 4.9% - Here's Why

Key Points

• Shares down 4.9% to $1,665 on Thursday, with 8,857 shares traded — about 23% below average and down from the prior close of $1,750.11.
• Analyst consensus is a Moderate Buy (1 Strong Buy, 3 Buy, 2 Hold); notable recent moves include Zacks upgrading to Strong-Buy and BMO cutting its rating to Market Perform.
• Fairfax posted a quarterly EPS beat ($52.04 vs. $41.00 expected) but missed revenue estimates ($8.26B vs. $8.57B); the company has a market cap of ~$36.7B and a P/E of 8.11.

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report) shares traded down 4.9% during trading on Thursday . The stock traded as low as $1,588.8987 and last traded at $1,665.00. 8,857 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 11,539 shares. The stock had previously closed at $1,750.11.

Analyst Ratings Changes

A number of brokerages have recently commented on FRFHF. Zacks Research upgraded Fairfax Financial from a "hold" rating to a "strong-buy" rating in a report on Thursday, January 1st. National Bankshares reiterated an "outperform" rating on shares of Fairfax Financial in a research report on Monday, October 27th. BMO Capital Markets lowered shares of Fairfax Financial from an "outperform" rating to a "market perform" rating in a report on Wednesday. Raymond James Financial reissued an "outperform" rating on shares of Fairfax Financial in a research note on Thursday, October 16th. Finally, Scotiabank restated an "outperform" rating on shares of Fairfax Financial in a research report on Wednesday, October 22nd. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy".

Fairfax Financial Trading Down 4.1%

The firm has a market capitalization of $36.71 billion, a P/E ratio of 8.11 and a beta of 0.59. The stock has a 50-day simple moving average of $1,785.87 and a two-hundred day simple moving average of $1,745.28. The company has a current ratio of 2.77, a quick ratio of 2.77 and a debt-to-equity ratio of 0.46.

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The financial services provider reported $52.04 earnings per share for the quarter, topping the consensus estimate of $41.00 by $11.04. The firm had revenue of $8.26 billion during the quarter, compared to analysts' expectations of $8.57 billion. Fairfax Financial had a net margin of 15.01% and a return on equity of 16.47%. On average, equities research analysts anticipate that Fairfax Financial Holdings Ltd. will post 166.85 earnings per share for the current year.

Fairfax Financial Company Profile

Fairfax Financial OTCMKTS: FRFHF is a Toronto-based financial holding company primarily engaged in property and casualty insurance, reinsurance and investment management. The company underwrites a broad range of commercial and personal insurance products, operates specialty and run-off reinsurance businesses, and manages a diversified investment portfolio largely funded by insurance float. Fairfax conducts its insurance operations through a network of subsidiaries and affiliated companies that provide local underwriting and claims services across multiple markets.

On the insurance side, Fairfax writes a mix of short-tail and long-tail coverages across specialty lines, commercial casualty, property and other niche markets, while its reinsurance activities include treaty and facultative solutions for cedants and intermediaries.

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