Fairfax Financial (OTCMKTS:FRFHF) Stock Price Passes Below Fifty Day Moving Average - What's Next?

Key Points

• Fairfax Financial (FRFHF) shares fell below their 50‑day moving average (50‑day = $1,734.24), trading as low as $1,661.01 and last at $1,679.32 on a volume of 21,355 shares.
• Analyst sentiment is mixed but mildly positive — three Buy and three Hold ratings give a MarketBeat consensus of "Moderate Buy", although Zacks and BMO recently cut their ratings to Hold while Scotiabank reaffirmed Outperform.
• The company reported a quarterly EPS of $57.57 (beating the $55.45 estimate) on $7.71B revenue, and shows solid financial metrics including a $36.74B market cap and a P/E of 7.85, suggesting an attractive valuation.

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report)'s share price crossed below its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of $1,734.24 and traded as low as $1,661.01. Fairfax Financial shares last traded at $1,679.3199, with a volume of 21,355 shares.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on FRFHF. Zacks Research lowered shares of Fairfax Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 30th. BMO Capital Markets cut shares of Fairfax Financial from an "outperform" rating to a "hold" rating in a report on Wednesday, January 21st. Finally, Scotiabank reaffirmed an "outperform" rating on shares of Fairfax Financial in a research report on Friday, January 30th. Three equities research 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 company presently has a consensus rating of "Moderate Buy".

Fairfax Financial Stock Performance

The firm's 50 day moving average price is $1,734.24 and its 200-day moving average price is $1,727.77. The firm has a market cap of $36.74 billion, a price-to-earnings ratio of 7.85 and a beta of 0.59. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.78 and a quick ratio of 2.77.

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) last released its earnings results on Thursday, February 19th. The financial services provider reported $57.57 EPS for the quarter, beating the consensus estimate 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 analysts' expectations of $7.62 billion. On average, 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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