Fairfax Financial (OTCMKTS:FRFHF) Shares Gap Up – What’s Next?

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $1,685.50, but opened at $1,730.00. Fairfax Financial shares last traded at $1,695.4680, with a volume of 1,390 shares trading hands.

Wall Street Analyst Weigh In

Several research firms recently weighed in on FRFHF. Zacks Research cut Fairfax Financial from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Scotiabank reiterated an “outperform” rating on shares of Fairfax Financial in a research report on Friday, January 30th. Finally, BMO Capital Markets cut shares of Fairfax Financial from an “outperform” rating to a “hold” rating in a research report on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy”.

Fairfax Financial Stock Down 0.4%

The stock has a 50-day moving average of $1,703.31 and a 200-day moving average of $1,727.20. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.78 and a quick ratio of 3.78. The firm has a market cap of $36.72 billion, a price-to-earnings ratio of 7.84 and a beta of 0.59.

Fairfax Financial (OTCMKTS:FRFHF) last announced its quarterly earnings data on Thursday, February 19th. The financial services provider reported $57.57 earnings per share for the quarter, beating the consensus estimate of $55.45 by $2.12. The firm had revenue of $7.71 billion during the quarter, compared to analysts’ expectations of $7.62 billion. Fairfax Financial had a return on equity of 16.29% and a net margin of 15.10%. Sell-side analysts predict that Fairfax Financial Holdings Ltd. will post 166.85 EPS for the current fiscal year.

Fairfax Financial Company Profile

Fairfax Financial (OTCMKTS:FRFHF) is a Toronto-based financial holding company primarily engaged in property and casualty insurance, reinsurance and investment management. The company underwrites a broad range of commercial and personal insurance products, operates specialty and run-off reinsurance businesses, and manages a diversified investment portfolio largely funded by insurance float. Fairfax conducts its insurance operations through a network of subsidiaries and affiliated companies that provide local underwriting and claims services across multiple markets.

On the insurance side, Fairfax writes a mix of short-tail and long-tail coverages across specialty lines, commercial casualty, property and other niche markets, while its reinsurance activities include treaty and facultative solutions for cedants and intermediaries.