American Financial Group (NYSE:AFG) Hits New 12-Month High - Here's What Happened

Key Points

• American Financial Group shares reached a new 52-week high of $151, up from a prior close of $149.68. The stock’s consensus analyst rating remains “Hold,” with an average price target of $152.75.
• The insurer reported strong quarterly results, with EPS of $2.82 beating estimates by $0.50 and revenue rising 5.5% year over year to $2.03 billion.
• AFG increased its quarterly dividend to $0.97, equating to an annualized dividend of $3.88 and a 2.6% yield. Institutional investors own 64.37% of the company, while recent insider transactions involved sales by its vice president and CFO.

American Financial Group, Inc. (NYSE:AFG - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Thursday. The company traded as high as $151.00 and last traded at $150.9750, with a volume of 32,921 shares trading hands. The stock had previously closed at $149.68.

Analyst Ratings Changes

AFG has been the subject of a number of recent research reports. Wells Fargo & Company cut their price objective on shares of American Financial Group from $175.00 to $166.00 and set an "overweight" rating for the company in a report on Monday, October 12th. Piper Sandler raised their target price on shares of American Financial Group from $140.00 to $156.00 and gave the stock a "neutral" rating in a report on Monday, August 10th. Keefe, Bruyette & Woods dropped their price target on shares of American Financial Group from $153.00 to $147.00 and set a "market perform" rating for the company in a research report on Monday, October 12th. Weiss Ratings upgraded American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen raised American Financial Group from a "hold" rating to a "buy" rating in a research report on Saturday, October 17th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $152.75.

American Financial Group Price Performance

The business's 50-day simple moving average is $142.80 and its two-hundred day simple moving average is $138.45. The stock has a market cap of $12.60 billion, a price-to-earnings ratio of 13.28 and a beta of 0.59. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.49 and a quick ratio of 0.49.

American Financial Group (NYSE:AFG - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The insurance provider reported $2.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.32 by $0.50. American Financial Group had a net margin of 11.51% and a return on equity of 20.35%. The company had revenue of $2.03 billion during the quarter, compared to the consensus estimate of $1.85 billion. During the same period in the prior year, the business earned $2.14 earnings per share. The company's revenue for the quarter was up 5.5% compared to the same quarter last year. Research analysts expect that American Financial Group, Inc. will post 12.29 earnings per share for the current year.

American Financial Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Thursday, October 15th will be issued a $0.97 dividend. This represents a $3.88 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Thursday, October 15th. This is a boost from American Financial Group's previous quarterly dividend of $0.88. American Financial Group's payout ratio is currently 33.92%.

Insider Transactions at American Financial Group

In other American Financial Group news, VP Mark Weiss sold 2,813 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $144.76, for a total value of $407,209.88. Following the completion of the transaction, the vice president directly owned 6,648 shares in the company, valued at approximately $962,364.48. This trade represents a 29.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brian Hertzman sold 950 shares of American Financial Group stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $142.87, for a total value of $135,726.50. Following the sale, the chief financial officer directly owned 11,123 shares in the company, valued at $1,589,143.01. The trade was a 7.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 16.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AFG. BlackRock Inc. bought a new stake in American Financial Group during the 2nd quarter worth approximately $1,079,329,000. Bank of New York Mellon Corp bought a new position in shares of American Financial Group during the second quarter valued at $102,590,000. Bank of America Corp DE acquired a new position in shares of American Financial Group during the second quarter worth $53,939,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of American Financial Group by 337.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 431,144 shares of the insurance provider's stock worth $55,061,000 after purchasing an additional 332,517 shares during the period. Finally, First Trust Advisors LP grew its stake in shares of American Financial Group by 433.2% in the first quarter. First Trust Advisors LP now owns 316,974 shares of the insurance provider's stock worth $40,481,000 after purchasing an additional 257,522 shares during the last quarter. Institutional investors own 64.37% of the company's stock.

About American Financial Group

American Financial Group, Inc NYSE: AFG is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group operations, the company primarily provides property and casualty insurance, with an emphasis on specialty commercial products and markets.

Its insurance offerings serve businesses, organizations and individuals across a range of industries. Product lines have included commercial property and liability coverage, workers' compensation, transportation, agriculture and crop insurance, marine and other specialty risks.

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