Fairfax Financial (OTCMKTS:FRFHF) Hits New 1-Year High After Strong Earnings

Key Points

• Fairfax Financial hit a new 52-week high, trading as high as $1,960 after closing at $1,769.11 in the prior session.
• Quarterly EPS was $43.32, beating the $29.47 consensus, while revenue of $9.11 billion also topped estimates of $8.42 billion.
• Analyst views are mixed, but the overall consensus rating remains Hold: one Buy, two Holds and one Sell.

Shares of Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $1,960.00 and last traded at $1,945.56, with a volume of 11,359 shares trading hands. The stock had previously closed at $1,769.11.

The financial services provider reported $43.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $29.47 by $13.85. Fairfax Financial had a net margin of 13.83% and a return on equity of 14.72%. The business had revenue of $9.11 billion during the quarter, compared to the consensus estimate of $8.42 billion.

Analyst Ratings Changes

FRFHF has been the subject of several research analyst reports. BMO Capital Markets reiterated a "market perform" rating on shares of Fairfax Financial in a research note on Friday, October 16th. Zacks Research cut Fairfax Financial from a "hold" rating to a "strong sell" rating in a research note on Monday, October 5th. Finally, Scotiabank reaffirmed an "outperform" rating on shares of Fairfax Financial in a report on Friday, July 24th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Fairfax Financial has a consensus rating of "Hold".

Fairfax Financial Stock Performance

The company has a fifty day moving average of $1,647.56 and a two-hundred day moving average of $1,667.89. The firm has a market capitalization of $40.70 billion, a price-to-earnings ratio of 9.59 and a beta of 0.45. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.60 and a current ratio of 3.60.

Fairfax Financial Company Profile

Fairfax Financial Holdings Limited is a Toronto-based holding company engaged primarily in property and casualty insurance and reinsurance. Through its operating subsidiaries, the company provides commercial and personal insurance products, specialty coverage, and reinsurance solutions to businesses, institutions, and individuals.

Fairfax's insurance operations include companies such as Odyssey Group, Allied World, Brit, Northbridge Insurance, Crum & Forster, and Zenith. Its businesses serve customers across Canada, the United States, Europe, and other international markets.

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