American Financial Group (NYSE:AFG) Reaches New 12-Month High on Analyst Upgrade

Key Points

• AFG shares reached a 12-month high, trading as high as $159.36 after Wells Fargo raised its price target from $166 to $180 and reiterated an overweight rating.
• The insurer reported third-quarter adjusted earnings of $3.97 per share and revenue of $2.58 billion, both above analyst expectations; net earnings increased to $282 million from $215 million a year earlier.
• AFG declared a one-time $3.50-per-share special dividend, payable November 25. Its property-and-casualty combined ratio worsened 90 basis points to 94%, though it remained below 100%.

American Financial Group, Inc. (NYSE:AFG - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday after Wells Fargo & Company raised their price target on the stock from $166.00 to $180.00. Wells Fargo & Company currently has an overweight rating on the stock. American Financial Group traded as high as $159.36 and last traded at $159.1590, with a volume of 16,106 shares changing hands. The stock had previously closed at $154.77.

AFG has been the topic of several other reports. Weiss Ratings upgraded shares of American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Keefe, Bruyette & Woods cut 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 report on Monday, October 12th. Wall Street Zen raised shares of American Financial Group from a "hold" rating to a "buy" rating in a research report on Saturday, October 17th. Finally, Piper Sandler lifted 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 report on Monday, August 10th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $156.25.

Insider Buying and Selling

In other American Financial Group news, CFO Brian Hertzman sold 950 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $142.87, for a total transaction of $135,726.50. Following the completion of the transaction, the chief financial officer owned 11,123 shares of the company's stock, valued at $1,589,143.01. This trade represents a 7.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 16.90% of the stock is owned by insiders.

More American Financial Group News

Here are the key news stories impacting American Financial Group this week:

• Positive Sentiment: AFG reported adjusted third-quarter earnings of $3.97 per share, above the $3.80 analyst estimate, while revenue of $2.58 billion also exceeded expectations of $2.40 billion. Net earnings rose to $282 million from $215 million a year earlier. Third-quarter results and dividend announcement
• Positive Sentiment: The company declared a one-time $3.50-per-share special cash dividend, payable November 25 to shareholders of record November 16. The payout may support investor demand, though it is not a recurring dividend increase. Special dividend announcement
• Positive Sentiment: Wells Fargo raised its price target from $166 to $180 and reiterated an “overweight” rating, signaling a more optimistic outlook. Price-target update
• Negative Sentiment: AFG’s property-and-casualty combined ratio worsened by 90 basis points to 94%. Although still below 100%, the deterioration points to somewhat weaker underwriting performance. Combined-ratio coverage

Institutional Trading of American Financial Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of American Financial Group during the second quarter worth approximately $1,079,329,000. Dimensional Fund Advisors LP lifted its position in American Financial Group by 19.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,506,510 shares of the insurance provider's stock valued at $192,395,000 after acquiring an additional 240,509 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of American Financial Group in the 2nd quarter valued at about $102,590,000. Arrowstreet Capital Limited Partnership grew its stake in American Financial Group by 337.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 431,144 shares of the insurance provider's stock worth $55,061,000 after buying an additional 332,517 shares during the last quarter. Finally, Bank of America Corp DE purchased a new position in American Financial Group during the 2nd quarter worth approximately $53,939,000. Hedge funds and other institutional investors own 64.37% of the company's stock.

American Financial Group Stock Performance

The company has a quick ratio of 0.49, a current ratio of 0.49 and a debt-to-equity ratio of 0.38. The firm has a 50-day simple moving average of $144.40 and a 200 day simple moving average of $136.76. The company has a market cap of $13.14 billion, a price-to-earnings ratio of 12.92 and a beta of 0.55.

American Financial Group (NYSE:AFG - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The insurance provider reported $3.97 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.17. The business had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.40 billion. American Financial Group had a return on equity of 22.50% and a net margin of 11.96%. During the same period in the prior year, the company earned $2.69 earnings per share. On average, sell-side analysts predict that American Financial Group, Inc. will post 12.29 earnings per share for the current fiscal year.

American Financial Group Dividend Announcement

The firm also recently declared a special dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, November 16th will be given a $3.50 dividend. The ex-dividend date is Monday, November 16th. American Financial Group's dividend payout ratio is 33.92%.

American Financial Group Company Profile

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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