American Financial Group (NYSE:AFG) Hits New 12-Month High - Time to Buy?

Key Points

• American Financial Group reached a new 52-week high of $155.11, while shares recently traded near $153.43. The stock’s average analyst rating remains “Hold,” with an average price target of $152.75.
• The insurer reported strong quarterly results, posting EPS of $2.82 versus the $2.32 consensus and revenue of $2.03 billion, up 5.5% year over year.
• AFG raised its quarterly dividend to $0.97 per share, equivalent to a 2.5% yield and a 33.92% payout ratio. Institutional investors own 64.37% of the company, while recent insider transactions were sales.

American Financial Group, Inc. (NYSE:AFG - Get Free Report) hit a new 52-week high during mid-day trading on Friday. The company traded as high as $155.11 and last traded at $153.4260, with a volume of 20,491 shares trading hands. The stock had previously closed at $153.10.

Analyst Upgrades and Downgrades

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

American Financial Group Price Performance

The stock has a 50-day simple moving average of $143.59 and a 200 day simple moving average of $136.30. The company has a current ratio of 0.49, a quick ratio of 0.49 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $12.71 billion, a price-to-earnings ratio of 13.40 and a beta of 0.59.

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

American Financial Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Thursday, October 15th were given a dividend of $0.97 per share. The ex-dividend date was Thursday, October 15th. This represents a $3.88 annualized dividend and a dividend yield of 2.5%. This is an increase from American Financial Group's previous quarterly dividend of $0.88. American Financial Group's dividend payout ratio is currently 33.92%.

Insiders Place Their Bets

In related news, CFO Brian Hertzman sold 950 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was 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. This represents a 7.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Mark Weiss sold 2,813 shares of American Financial Group stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $144.76, for a total transaction of $407,209.88. Following the completion of the sale, the vice president directly owned 6,648 shares of the company's stock, valued at approximately $962,364.48. This trade represents a 29.73% 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 currently owned by insiders.

Institutional Trading of American Financial Group

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