Fairfax Financial (OTCMKTS:FRFHF) Stock Passes Above Fifty Day Moving Average - Time to Sell?

Key Points

• Price action: Fairfax stock passed above its 50-day moving average
• Analyst sentiment is mixed: three analysts rate the stock Buy and three Hold, with recent downgrades from Zacks and BMO but an average rating of "Moderate Buy" (Scotiabank still "Outperform").
• Recent quarter showed strength — EPS $57.57 beat estimates of $55.45 and revenue $7.71B topped $7.62B, with a net margin of 15.10% and ROE of 16.29%; the company trades at a P/E of 7.94 and market cap of $36.90B.

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report)'s stock price passed above its fifty day moving average during trading on Thursday . The stock has a fifty day moving average of $1,694.55 and traded as high as $1,720.00. Fairfax Financial shares last traded at $1,699.00, with a volume of 6,122 shares traded.

Analysts Set New Price Targets

FRFHF has been the subject of several recent research reports. Scotiabank reissued an "outperform" rating on shares of Fairfax Financial in a research report on Friday, January 30th. Zacks Research cut shares of Fairfax Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th. Finally, BMO Capital Markets lowered Fairfax Financial from an "outperform" rating to a "hold" rating in a report on Wednesday, January 21st. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy".

Fairfax Financial Trading Up 0.4%

The company has a current ratio of 3.78, a quick ratio of 3.78 and a debt-to-equity ratio of 0.45. The company's fifty day moving average is $1,694.55 and its 200-day moving average is $1,724.68. The firm has a market capitalization of $36.90 billion, a P/E ratio of 7.94 and a beta of 0.58.

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) last released its earnings results on Thursday, February 19th. The financial services provider reported $57.57 earnings per share for the quarter, topping analysts' consensus estimates of $55.45 by $2.12. Fairfax Financial had a net margin of 15.10% and a return on equity of 16.29%. The firm had revenue of $7.71 billion during the quarter, compared to analyst estimates of $7.62 billion. As a group, sell-side analysts anticipate that Fairfax Financial Holdings Ltd. will post 166.85 earnings per share for the current fiscal 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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