American Financial Group (NYSE:AFG) Reaches New 52-Week High - Here's Why

Key Points

• American Financial Group shares reached a 52-week high of $161.31, up from the previous close of $160.84.
• The insurer beat quarterly expectations, reporting EPS of $3.97 versus $3.80 expected and revenue of $2.58 billion versus $2.40 billion forecast.
• The company declared a $3.50-per-share special dividend. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $159.

Shares of American Financial Group, Inc. (NYSE:AFG - Get Free Report) hit a new 52-week high during trading on Wednesday. The company traded as high as $161.31 and last traded at $161.1940, with a volume of 496,256 shares. The stock had previously closed at $160.84.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Wall Street Zen downgraded American Financial Group from a "buy" rating to a "hold" rating in a research note on Saturday. Wells Fargo & Company boosted their price target on American Financial Group from $166.00 to $180.00 and gave the stock an "overweight" rating in a research note on Thursday, November 5th. Oppenheimer set a $150.00 price target on American Financial Group in a report on Monday. Piper Sandler raised their price objective on American Financial Group from $140.00 to $156.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Finally, Keefe, Bruyette & Woods upped their target price on American Financial Group from $147.00 to $150.00 and gave the company a "market perform" rating in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $159.00.

American Financial Group Trading Up 0.2%

The stock has a market cap of $13.34 billion, a price-to-earnings ratio of 13.15 and a beta of 0.55. The business's fifty day simple moving average is $145.52 and its 200 day simple moving average is $137.29. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.52 and a quick ratio of 0.52.

American Financial Group (NYSE:AFG - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The insurance provider reported $3.97 earnings per share for the quarter, topping analysts' consensus estimates of $3.80 by $0.17. American Financial Group had a net margin of 11.96% and a return on equity of 22.56%. The company had revenue of $2.58 billion for the quarter, compared to analysts' expectations of $2.40 billion. During the same period in the prior year, the company earned $2.69 earnings per share. On average, research analysts predict that American Financial Group, Inc. will post 12.44 EPS for the current year.

American Financial Group Announces Dividend

The firm also recently disclosed a special dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, November 16th will be given a dividend of $3.50 per share. The ex-dividend date of this dividend is Monday, November 16th. American Financial Group's dividend payout ratio is currently 31.65%.

Insiders Place Their Bets

In related news, CFO Brian Hertzman sold 301 shares of the stock in a transaction dated Friday, November 6th. The shares were sold at an average price of $155.29, for a total transaction of $46,742.29. Following the sale, the chief financial officer owned 1,553 shares in the company, valued at $241,165.37. This represents a 16.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 16.90% of the stock is currently owned by company insiders.

Institutional Trading of American Financial Group

Several hedge funds have recently made changes to their positions in AFG. Advisors Asset Management Inc. acquired a new stake in shares of American Financial Group in the 3rd quarter worth about $34,834,000. Private Wealth Asset Management LLC acquired a new position in American Financial Group during the 3rd quarter valued at about $197,000. Private Advisor Group LLC boosted its stake in American Financial Group by 15.1% during the 3rd quarter. Private Advisor Group LLC now owns 1,698 shares of the insurance provider's stock valued at $232,000 after purchasing an additional 223 shares during the period. Ieq Capital LLC acquired a new position in American Financial Group during the 3rd quarter valued at about $1,104,000. Finally, Focus Advisor Solutions LLC grew its position in American Financial Group by 238.3% in the 3rd quarter. Focus Advisor Solutions LLC now owns 9,594 shares of the insurance provider's stock worth $1,312,000 after purchasing an additional 6,758 shares during the last quarter. Institutional investors own 64.37% of the company's stock.

About American Financial Group

American Financial Group, Inc. is an insurance holding company headquartered in Cincinnati, Ohio. Through Great American Insurance Group, it provides property and casualty insurance, with a focus on specialty commercial markets and coverage tailored to specific industries and customer needs. Its products include insurance for businesses, farms and agricultural operations, and individuals, offered through a network of independent agents and brokers. AFG's insurance operations serve customers primarily in the United States, with some products and services available internationally.

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