Zacks Research Has Negative Forecast for AFG Q2 Earnings

Key Points

• Zacks Research lowered its Q2 2026 EPS estimate for American Financial Group (NYSE: AFG) to $2.42 from $2.45, signaling a slightly more cautious outlook for the insurer’s near-term earnings. The firm also projected full-year 2026 EPS of $11.21.
• AFG’s latest quarterly results missed profit expectations but beat on revenue, reporting $2.47 EPS versus the $2.54 consensus, while revenue came in at $1.85 billion, above estimates of $1.70 billion. Revenue was essentially flat year over year.
• Analyst sentiment remains mixed, with the stock carrying a consensus rating of “Hold” and an average price target of $143.75. Shares recently traded at $136.84, and the company also pays a $0.88 quarterly dividend, yielding about 2.6%.

American Financial Group, Inc. (NYSE:AFG - Free Report) - Investment analysts at Zacks Research dropped their Q2 2026 earnings estimates for shares of American Financial Group in a research note issued to investors on Wednesday, May 20th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $2.42 for the quarter, down from their previous forecast of $2.45. The consensus estimate for American Financial Group's current full-year earnings is $11.21 per share. Zacks Research also issued estimates for American Financial Group's Q3 2026 earnings at $2.74 EPS, Q2 2027 earnings at $2.56 EPS, Q3 2027 earnings at $2.79 EPS, FY2027 earnings at $11.78 EPS and FY2028 earnings at $11.70 EPS.

Several other equities analysts have also commented on the stock. Keefe, Bruyette & Woods increased their price objective on shares of American Financial Group from $134.00 to $140.00 and gave the company a "market perform" rating in a research report on Wednesday, March 25th. Piper Sandler increased their price objective on shares of American Financial Group from $129.00 to $135.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Wells Fargo & Company increased their price objective on shares of American Financial Group from $155.00 to $158.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings raised shares of American Financial Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 16th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $143.75.

American Financial Group Stock Performance

Shares of American Financial Group stock opened at $136.84 on Thursday. The firm has a market capitalization of $11.37 billion, a P/E ratio of 13.01 and a beta of 0.65. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 0.39. The company has a 50 day moving average price of $130.25 and a 200 day moving average price of $132.55. American Financial Group has a 52 week low of $120.52 and a 52 week high of $150.02.

American Financial Group (NYSE:AFG - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The insurance provider reported $2.47 EPS for the quarter, missing the consensus estimate of $2.54 by ($0.07). The company had revenue of $1.85 billion during the quarter, compared to analysts' expectations of $1.70 billion. American Financial Group had a net margin of 10.76% and a return on equity of 19.50%. The business's revenue for the quarter was down .1% compared to the same quarter last year. During the same period in the previous year, the business earned $1.81 earnings per share.

Institutional Investors Weigh In On American Financial Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new stake in American Financial Group in the 4th quarter valued at $114,661,000. M&T Bank Corp grew its stake in American Financial Group by 20,131.5% in the 4th quarter. M&T Bank Corp now owns 637,090 shares of the insurance provider's stock valued at $87,077,000 after acquiring an additional 633,941 shares during the period. Vestor Capital LLC grew its stake in American Financial Group by 100,006.8% in the 4th quarter. Vestor Capital LLC now owns 600,641 shares of the insurance provider's stock valued at $82,096,000 after acquiring an additional 600,041 shares during the period. Victory Capital Management Inc. grew its stake in American Financial Group by 12.9% in the 3rd quarter. Victory Capital Management Inc. now owns 2,963,942 shares of the insurance provider's stock valued at $431,906,000 after acquiring an additional 337,573 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its stake in American Financial Group by 337.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 431,144 shares of the insurance provider's stock valued at $55,061,000 after acquiring an additional 332,517 shares during the period. Institutional investors and hedge funds own 64.37% of the company's stock.

Insider Activity at American Financial Group

In other news, CFO Brian S. Hertzman sold 1,663 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $133.70, for a total transaction of $222,343.10. Following the sale, the chief financial officer owned 12,073 shares of the company's stock, valued at $1,614,160.10. This trade represents a 12.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 16.90% of the stock is owned by insiders.

American Financial Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 24th. Stockholders of record on Wednesday, April 15th were paid a dividend of $0.88 per share. The ex-dividend date of this dividend was Wednesday, April 15th. This represents a $3.52 dividend on an annualized basis and a dividend yield of 2.6%. American Financial Group's dividend payout ratio (DPR) is presently 33.46%.

About American Financial Group

American Financial Group, Inc NYSE: AFG is a diversified holding company primarily engaged in property and casualty insurance and reinsurance. Through its flagship subsidiary, Great American Insurance Company, the firm underwrites a broad range of specialty insurance products for commercial and industrial clients, including inland marine, excess and surplus lines, executive liability, and environmental liability coverage. In addition, American Financial Group offers supplemental accident and health insurance and assumes reinsurance risks from other insurers, helping to diversify its underwriting portfolio.

The company traces its roots to 1946, when it was founded by Carl Lindner, Sr.

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