American Financial Group (NYSE:AFG) Sets New 1-Year High - Should You Buy?

Key Points

• American Financial Group shares reached a new 52-week high of $148.71, trading above their 50-day and 200-day moving averages. Analysts nevertheless maintain a consensus “Hold” rating, with an average price target of $152.75.
• The insurer reported strong quarterly results, earning $2.82 per share versus the $2.32 consensus estimate, while revenue rose 5.5% year over year to $2.03 billion.
• AFG increased its quarterly dividend to $0.97 per share, implying an annualized dividend of $3.88 and a 2.6% yield. Recent insider transactions were sales, although institutional investors collectively own 64.37% of the company.

American Financial Group, Inc. (NYSE:AFG - Get Free Report) reached a new 52-week high on Friday. The company traded as high as $148.71 and last traded at $148.5030, with a volume of 55,292 shares changing hands. The stock had previously closed at $145.73.

Analyst Upgrades and Downgrades

AFG has been the topic of several recent research reports. Keefe, Bruyette & Woods reduced their price target on American Financial Group from $153.00 to $147.00 and set a "market perform" rating on the stock in a research report on Monday. Weiss Ratings raised American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Wells Fargo & Company lowered their price objective on American Financial Group from $175.00 to $166.00 and set an "overweight" rating for the company in a research report on Monday. Wall Street Zen lowered American Financial Group from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. Finally, 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. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $152.75.

American Financial Group Price Performance

The business has a 50-day simple moving average of $142.43 and a 200 day simple moving average of $137.85. The firm has a market cap of $12.25 billion, a P/E ratio of 12.91 and a beta of 0.59. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.49 and a current ratio of 0.49.

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

American Financial Group Increases Dividend

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

Insider Buying and Selling at American Financial Group

In related news, CFO Brian Hertzman sold 950 shares of American Financial Group stock in a transaction on 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 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. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Mark Weiss sold 2,813 shares of the business's 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 transaction, the vice president directly owned 6,648 shares in the company, valued at approximately $962,364.48. The trade was a 29.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 16.90% of the company's stock.

Hedge Funds Weigh In On American Financial Group

Institutional investors have recently bought and sold shares of the stock. Assenagon Asset Management S.A. raised its position in shares of American Financial Group by 57.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 327,673 shares of the insurance provider's stock worth $44,813,000 after acquiring an additional 119,411 shares in the last quarter. Viking Fund Management LLC boosted its position in shares of American Financial Group by 21.8% during the third quarter. Viking Fund Management LLC now owns 123,000 shares of the insurance provider's stock valued at $16,821,000 after purchasing an additional 22,000 shares in the last quarter. ZWJ Investment Counsel Inc. boosted its position in shares of American Financial Group by 4.9% during the third quarter. ZWJ Investment Counsel Inc. now owns 1,502 shares of the insurance provider's stock valued at $205,000 after purchasing an additional 70 shares in the last quarter. Krilogy Financial LLC boosted its position in shares of American Financial Group by 75.3% during the third quarter. Krilogy Financial LLC now owns 2,610 shares of the insurance provider's stock valued at $375,000 after purchasing an additional 1,121 shares in the last quarter. Finally, NorthCrest Asset Manangement LLC grew its stake in American Financial Group by 92.7% in the third quarter. NorthCrest Asset Manangement LLC now owns 4,777 shares of the insurance provider's stock worth $678,000 after purchasing an additional 2,298 shares during the period. 64.37% of the stock is owned by institutional investors.

About American Financial Group

American Financial Group, Inc is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group businesses, the company primarily provides property and casualty insurance products, with an emphasis on specialty commercial markets that require specialized underwriting expertise.

Its insurance offerings include coverage for commercial transportation, agriculture, workers' compensation, excess and surplus risks, environmental exposures, inland marine, and other niche industries.

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