American Financial Group (NYSE:AFG) Releases Earnings Results, Beats Estimates By $0.17 EPS

American Financial Group (NYSE:AFG) issued its earnings results on Tuesday. The insurance provider reported $3.97 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.80 by $0.17, Zacks reports. American Financial Group had a return on equity of 22.50% and a net margin of 11.96%. The business had revenue of $2.58 billion during the quarter, compared to analysts’ expectations of $2.40 billion. During the same period in the prior year, the firm posted $2.69 EPS.

American Financial Group Stock Performance

Shares of AFG stock traded up $1.43 during trading on Thursday, reaching $156.20. 267,356 shares of the company’s stock were exchanged, compared to its average volume of 504,389. The company has a quick ratio of 0.49, a current ratio of 0.49 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $12.95 billion, a PE ratio of 12.73 and a beta of 0.55. American Financial Group has a twelve month low of $123.09 and a twelve month high of $159.61. The firm’s fifty day moving average price is $144.40 and its 200-day moving average price is $136.76.

American Financial Group Announces Dividend

The firm also recently declared a special dividend, which will be paid on Wednesday, November 25th. Shareholders 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 payout ratio is 33.92%.

Trending Headlines about American Financial Group

Here are the key news stories impacting American Financial Group this week:

• Positive Sentiment: AFG reported third-quarter adjusted EPS of $3.97, above the $3.80 consensus, and revenue of $2.58 billion versus expectations of $2.40 billion. Net earnings rose to $282 million, or $3.40 per share, from $215 million, or $2.58 per share, a year earlier. Third-quarter results and special dividend announcement
• Positive Sentiment: The company declared a $3.50-per-share special cash dividend, payable November 25 to shareholders of record November 16. The payout may support investor demand, though it is a one-time dividend. Special dividend announcement
• Positive Sentiment: Wells Fargo raised its AFG price target from $166 to $180 and maintained an “overweight” rating, signaling increased analyst optimism. Wells Fargo price target update
• Negative Sentiment: Property-and-casualty underwriting showed some margin pressure: the combined ratio worsened by 90 basis points to 94%. It remains below 100%, indicating underwriting profitability, but the deterioration is a watchpoint. P&C combined ratio report
• Negative Sentiment: Quarterly net earnings included $47 million, or $0.57 per share, in after-tax non-core losses, compared with $9 million, or $0.11 per share, in the year-ago quarter. This reduced reported earnings relative to the underlying adjusted result. Third-quarter results and special dividend announcement

Wall Street Analysts Forecast Growth

AFG has been the subject of several recent research reports. Wells Fargo & Company boosted their price objective on American Financial Group from $166.00 to $180.00 and gave the stock an “overweight” rating in a report on Thursday. Wall Street Zen raised shares of American Financial Group from a “hold” rating to a “buy” rating in a research note on Saturday, October 17th. Keefe, Bruyette & Woods cut their price objective on shares of American Financial Group from $153.00 to $147.00 and set a “market perform” rating on the stock in a report on Monday, October 12th. Piper Sandler raised their price objective on shares of 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, Weiss Ratings raised shares of American Financial Group from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $156.25.

Insider Activity

In other American Financial Group news, CFO Brian Hertzman sold 950 shares of the company’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $142.87, for a total value of $135,726.50. Following the transaction, the chief financial officer directly owned 11,123 shares of the company’s stock, valued at $1,589,143.01. This represents a 7.87% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Corporate insiders own 16.90% of the company’s stock.

American Financial Group Company Profile

American Financial Group, Inc (NYSE:AFG) is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group operations, the company primarily provides property and casualty insurance, with an emphasis on specialty commercial products and markets.

Its insurance offerings serve businesses, organizations and individuals across a range of industries. Product lines have included commercial property and liability coverage, workers’ compensation, transportation, agriculture and crop insurance, marine and other specialty risks.