Equities Analysts Offer Predictions for AFG FY2025 Earnings

Key Points

• Zacks Research has revised its FY2025 EPS estimate for American Financial Group downward from $10.19 to $9.57, pointing to a more pessimistic outlook for the insurer.
• American Financial Group reported Q2 earnings of $2.14 per share, exceeding expectations, but revenue of $1.65 billion fell short of the consensus estimate.
• The company's quarterly dividend was set at $0.80 per share, translating to an annualized yield of 2.4% with a payout ratio of 35.16%.

American Financial Group, Inc. (NYSE:AFG - Free Report) - Analysts at Zacks Research lowered their FY2025 earnings estimates for American Financial Group in a research report issued to clients and investors on Tuesday, August 19th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $9.57 for the year, down from their prior forecast of $10.19. The consensus estimate for American Financial Group's current full-year earnings is $10.50 per share. Zacks Research also issued estimates for American Financial Group's Q4 2025 earnings at $3.20 EPS, Q2 2026 earnings at $2.59 EPS, Q4 2026 earnings at $2.84 EPS, Q1 2027 earnings at $2.61 EPS, Q2 2027 earnings at $2.60 EPS and FY2027 earnings at $11.92 EPS.

American Financial Group (NYSE:AFG - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The insurance provider reported $2.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.08 by $0.06. The business had revenue of $1.65 billion for the quarter, compared to analysts' expectations of $1.77 billion. American Financial Group had a net margin of 9.21% and a return on equity of 17.41%. The firm's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period last year, the firm posted $2.56 earnings per share.

A number of other brokerages have also recently issued reports on AFG. Jefferies Financial Group lifted their price objective on shares of American Financial Group from $125.00 to $130.00 and gave the company a "hold" rating in a research note on Monday, August 11th. Wall Street Zen upgraded shares of American Financial Group from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Keefe, Bruyette & Woods cut their target price on shares of American Financial Group from $127.00 to $124.00 and set a "market perform" rating on the stock in a research report on Tuesday, August 12th. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $136.75.

American Financial Group Price Performance

NYSE:AFG traded up $0.21 during mid-day trading on Thursday, reaching $133.80. The stock had a trading volume of 78,718 shares, compared to its average volume of 497,478. The stock has a 50-day simple moving average of $127.24 and a two-hundred day simple moving average of $125.94. The stock has a market capitalization of $11.16 billion, a PE ratio of 14.71 and a beta of 0.74. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.47 and a quick ratio of 0.47. American Financial Group has a 12 month low of $114.73 and a 12 month high of $150.19.

American Financial Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 25th. Stockholders of record on Tuesday, July 15th were issued a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Tuesday, July 15th. American Financial Group's payout ratio is 35.16%.

Insider Activity at American Financial Group

In other news, Director Stephen Craig Lindner, Jr. sold 10,000 shares of American Financial Group stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $134.31, for a total transaction of $1,343,100.00. Following the transaction, the director owned 326,730 shares in the company, valued at approximately $43,883,106.30. The trade was a 2.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 17.40% of the company's stock.

Hedge Funds Weigh In On American Financial Group

A number of hedge funds have recently modified their holdings of the business. American Financial Group Inc. 401 K Retirement & Savings Plan lifted its holdings in shares of American Financial Group by 0.9% during the first quarter. American Financial Group Inc. 401 K Retirement & Savings Plan now owns 2,616,928 shares of the insurance provider's stock worth $343,707,000 after purchasing an additional 23,228 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in shares of American Financial Group by 1.8% during the second quarter. Charles Schwab Investment Management Inc. now owns 2,565,424 shares of the insurance provider's stock worth $323,782,000 after purchasing an additional 44,710 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of American Financial Group by 1.5% during the first quarter. Dimensional Fund Advisors LP now owns 983,398 shares of the insurance provider's stock worth $129,147,000 after purchasing an additional 14,265 shares during the period. Norges Bank acquired a new position in shares of American Financial Group during the second quarter worth $106,707,000. Finally, Northern Trust Corp lifted its holdings in shares of American Financial Group by 2.4% during the first quarter. Northern Trust Corp now owns 820,955 shares of the insurance provider's stock worth $107,824,000 after purchasing an additional 18,886 shares during the period. Institutional investors and hedge funds own 64.37% of the company's stock.

About American Financial Group

American Financial Group, Inc, an insurance holding company, provides specialty property and casualty insurance products in the United States. The company offers property and transportation insurance products, such as physical damage and liability coverage for buses and trucks, inland and ocean marine, agricultural-related products, and other commercial property and specialty transportation coverages; specialty casualty insurance, including primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers' compensation insurance; and specialty financial insurance products comprising risk management insurance programs for lending and leasing institutions, fidelity and surety products, and trade credit insurance.