AmTrust Financial Services (NASDAQ:AFSI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, March 6th.
According to Zacks, “AmTrust has agreed to go private as Evergreen Parent will buy 45% of the company’s stake which Karfunkel-Zyskind Family does not own presently for $2.7 billion. This acquisition will help AmTrust focus on long term growth objective rather than on short term results given it is becoming a private company. AmTrust’s leadership position in commercial small business, expansion of other segments and an impressive inorganic growth story poise it well for growth. The company also aims to build an investment portfolio that returns in line with the sector. The slow but improving rate environment also raises optimism. Plus, a strong balance sheet facilitates growth initiatives and effective capital deployment. Shares of the company outperformed industry yea to date. However, a high level of debt increases interest burden and escalates expenses, thereby hurting margin. Exposure to cat environment induced volatility in underwriting results.”
Several other analysts also recently commented on the stock. ValuEngine raised shares of AmTrust Financial Services from a “hold” rating to a “buy” rating in a research report on Thursday, March 1st. SunTrust Banks downgraded shares of AmTrust Financial Services from a “buy” rating to a “hold” rating in a report on Thursday, March 1st. Compass Point cut shares of AmTrust Financial Services from a “buy” rating to a “neutral” rating and set a $15.00 target price for the company. in a research note on Monday, February 26th. BidaskClub cut shares of AmTrust Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, February 24th. Finally, Keefe, Bruyette & Woods reiterated a “hold” rating and set a $10.00 target price on shares of AmTrust Financial Services in a research note on Wednesday, December 6th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $14.29.
Institutional investors have recently added to or reduced their stakes in the stock. Harel Insurance Investments & Financial Services Ltd. bought a new position in AmTrust Financial Services during the 4th quarter worth approximately $101,000. Commerzbank Aktiengesellschaft FI acquired a new stake in AmTrust Financial Services during the 3rd quarter worth approximately $135,000. Two Sigma Securities LLC acquired a new stake in AmTrust Financial Services during the 4th quarter worth approximately $115,000. Unison Advisors LLC acquired a new stake in AmTrust Financial Services during the 4th quarter worth approximately $119,000. Finally, Xact Kapitalforvaltning AB acquired a new stake in AmTrust Financial Services during the 4th quarter worth approximately $117,000. 29.40% of the stock is currently owned by institutional investors and hedge funds.
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AmTrust Financial Services Company Profile
Amtrust Financial Services, Inc (AmTrust) is an insurance holding company. The Company, through its subsidiaries, provides specialty property and casualty insurance focusing on workers’ compensation and commercial package coverage for small business, specialty risk and extended warranty coverage, and property and casualty coverage for middle market business.
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