American Financial Group, Inc. (NYSE:AFG) was the target of a significant decline in short interest in October. As of October 30th, there was short interest totalling 1,040,000 shares, a decline of 16.8% from the October 15th total of 1,250,000 shares. Based on an average daily volume of 510,200 shares, the days-to-cover ratio is presently 2.0 days. Approximately 1.4% of the shares of the stock are short sold.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Prudential Financial Inc. raised its position in American Financial Group by 6.4% during the second quarter. Prudential Financial Inc. now owns 355,124 shares of the insurance provider's stock valued at $22,536,000 after purchasing an additional 21,244 shares during the period. Jane Street Group LLC purchased a new stake in shares of American Financial Group during the 2nd quarter valued at approximately $4,248,000. Cerebellum GP LLC purchased a new stake in shares of American Financial Group during the 2nd quarter valued at approximately $111,000. Ensign Peak Advisors Inc raised its position in shares of American Financial Group by 56.7% during the 2nd quarter. Ensign Peak Advisors Inc now owns 90,905 shares of the insurance provider's stock valued at $5,769,000 after buying an additional 32,884 shares during the period. Finally, SG Americas Securities LLC raised its position in shares of American Financial Group by 338.8% during the 2nd quarter. SG Americas Securities LLC now owns 20,366 shares of the insurance provider's stock valued at $1,292,000 after buying an additional 15,725 shares during the period. Institutional investors and hedge funds own 61.54% of the company's stock.
Shares of American Financial Group stock traded up $0.71 during trading on Friday, hitting $89.73. 436,104 shares of the stock traded hands, compared to its average volume of 596,132. The company has a quick ratio of 0.18, a current ratio of 0.18 and a debt-to-equity ratio of 0.33. The stock has a market cap of $7.79 billion, a price-to-earnings ratio of 32.05 and a beta of 0.83. The firm's fifty day moving average is $76.47 and its 200-day moving average is $66.77. American Financial Group has a 52 week low of $44.01 and a 52 week high of $115.03.
American Financial Group (NYSE:AFG) last announced its quarterly earnings data on Monday, November 2nd. The insurance provider reported $2.45 EPS for the quarter, beating the consensus estimate of $1.76 by $0.69. American Financial Group had a return on equity of 11.54% and a net margin of 3.38%. On average, analysts forecast that American Financial Group will post 7.2 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Monday, October 26th. Investors of record on Thursday, October 15th were given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 2.23%. This is a positive change from American Financial Group's previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Wednesday, October 14th. American Financial Group's dividend payout ratio (DPR) is presently 23.20%.
A number of research firms recently commented on AFG. TheStreet downgraded American Financial Group from a "b" rating to a "c+" rating in a research note on Wednesday, October 28th. Raymond James upgraded American Financial Group from an "underperform" rating to a "market perform" rating in a report on Thursday, August 13th. Zacks Investment Research upgraded American Financial Group from a "sell" rating to a "buy" rating and set a $82.00 price target on the stock in a report on Tuesday, November 3rd. CSFB began coverage on American Financial Group in a research note on Wednesday, September 30th. They issued an "outperform" rating and a $95.00 price objective on the stock. Finally, Piper Sandler lifted their price objective on American Financial Group from $78.00 to $81.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 27th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating to the company's stock. The company has a consensus rating of "Hold" and an average price target of $85.00.
About American Financial Group
American Financial Group, Inc, an insurance holding company, provides property and casualty insurance products in the United States. The company operates through three segments: Property and Casualty Insurance, Annuity, and Other. It offers property and transportation insurance products, such as physical damage and liability coverage for buses, trucks, inland and ocean marine, agricultural-related products, and other commercial property coverages; specialty casualty insurance, including primarily excess and surplus, general liability, executive and professional liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers' compensation insurance; and specialty financial insurance products comprising risk management insurance programs for lending and leasing institutions, surety and fidelity products, and trade credit insurance.
Read More: Outstanding Shares, Buying and Selling Stocks
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to [email protected]
7 Stocks That Will Help You Forget About the Fed
Normally when the Federal Reserve (i.e. the Fed) makes an announcement, the market reacts predictably. That’s due, in large part, to the nature of what the Fed normally announces. Will interest rates go up, down, or remain unchanged? And for their part, the markets have a pretty good idea what the Fed will do before they do it.
But the Fed’s announcement of August 26 was a little different. They talked briefly about interest rates (they’re staying really low for a long time). But they were more concerned about inflation. Well, the Fed is always concerned about inflation, but this time they really mean it. Basic economics says that low-interest rates should spur inflation.
However, the market has been defying conventional wisdom and the Fed is not getting the inflation they want. So the Fed has basically said that they’re letting inflation go rogue. If it goes above their target 2% rate, so be it. The Fed is done trying to hit a target.
At first, the markets cheered the news. Not only was the Fed not taking away the punch bowl, but they were also going to keep the low rate liquidity going for a long time!
But after a little while to digest things, investors are realizing they have to be grown-ups about this. And now investors are considering how to rebalance their portfolios for the remainder of 2020.
I don’t know about them, but if I were you I would target companies that have a high free cash flow (FCF). Whether it’s your personal finances or in evaluating a stock, cash flow is your friend.
When a corporation has high FCF, they have more strong growth in good markets and more flexibility during when the economy is weaker.
As institutional investors come back into the market, it’s time for you to reposition your portfolio for whatever comes next.
View the "7 Stocks That Will Help You Forget About the Fed".