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At American Financial Group Inc. (NYSE:AFG), Share Price Got a Bit Ahead of the Fundamentals

American Financial Group Inc. (NYSE:AFG) has a beta of 0.93, a 12-month trailing P/E ratio of 8.32, and a growth ratio of 3.18. The stock’s Relative Strength Index (RSI) is 63.11, with weekly volatility at 3.44% and ATR at 2.92. The AFG stock’s 52-week price range has touched low of $49.90 and a $127.15 high. Its shares traded higher over the last trading session, gaining 3.16% on 06/08/21. The shares fell to a low of $117.57 before closing at $123.55. Intraday shares traded counted 1.04 million, which was -103.45% lower than its 30-day average trading volume of 510.68K. AFG’s previous close was $119.77 while the outstanding shares total 85.90M.

Investors have identified the Insurance – Property & Casualty company American Financial Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $10.35 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

American Financial Group Inc. (AFG) Fundamentals that are to be considered.

AFG were able to record 614.0 million as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by -483.0 million. In cash movements, the company had a total of 627.0 million as operating cash flow.

Potential earnings growth for American Financial Group Inc. (AFG)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, American Financial Group Inc. recorded a total of 1.51 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 30.09% coming in sequential stages and their sales for the 08/03/2021 quarter reducing by -88.4%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.17 billion trying to sell their products during the last quarter, with the result yielding a gross income of 335.0 million. This allows shareholders to hold on to 85.90M with the recently reported earning now reading 3.08 cents per share. This is a figure that compared to analyst’s prediction for their 08/03/2021 (2.38 cents a share).

Having a look at the company’s valuation, the company is expected to record 8.05 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AFG sounds very interesting.

Is the stock of AFG attractive?

In related news, Director, JACOBS TERRY S sold 131 shares of the company’s stock in a transaction that recorded on Jun 08. The sale was performed at an average price of 122.02, for a total value of 15,984. As the sale deal closes, the President of Subsidiary, BERDING JOHN B now sold 4,000 shares of the company’s stock, valued at 561,528. Also, Sr. VP, CFO, Hertzman Brian S. sold 1,620 shares of the company’s stock in a deal that was recorded on Jun 02. The shares were price at an average price of 135.58 per share, with a total market value of 219,643. Following this completion of acquisition, the Co-CEO & Co-President, LINDNER CARL H III now holds 63,240 shares of the company’s stock, valued at 8,268,828. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.

2 out of 5 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on American Financial Group Inc.. 0 analysts has assigned a Sell rating on the AFG stock. The 12-month mean consensus price target for the company’s shares has been set at $141.00.

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