AmTrust Financial Services (AFSI) Downgraded by Zacks Investment Research

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 Monday.

According to Zacks, “AmTrust Financial’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. Also, the company saw its 2018 estimate moving north by nearly 5.2% in the last 60 days. However, a high level of debt increases interest burden and escalates expenses, thereby hurting margin. Exposure to cat environment induced volatility in underwriting results. Shares of AmTrust Financial have underperformed the industry in a year's time.”

Several other brokerages have also weighed in on AFSI. SunTrust Banks restated a “buy” rating and issued a $16.00 price target on shares of AmTrust Financial Services in a research note on Friday, November 10th. JMP Securities lowered AmTrust Financial Services from an “outperform” rating to a “market perform” rating in a research note on Monday, November 13th. BidaskClub upgraded AmTrust Financial Services from a “sell” rating to a “hold” rating in a research note on Tuesday, February 13th. B. Riley restated a “neutral” rating and issued a $12.00 price target on shares of AmTrust Financial Services in a research note on Monday, November 6th. Finally, ValuEngine lowered AmTrust Financial Services from a “buy” rating to a “hold” rating in a research note on Sunday, December 31st. Seven equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company. AmTrust Financial Services presently has an average rating of “Hold” and an average target price of $15.14.

AmTrust Financial Services (NASDAQ AFSI) traded down $0.19 during midday trading on Monday, hitting $13.15. The company’s stock had a trading volume of 1,410,400 shares, compared to its average volume of 1,477,294. The stock has a market cap of $2,577.75, a price-to-earnings ratio of -82.18 and a beta of 1.30. AmTrust Financial Services has a twelve month low of $8.80 and a twelve month high of $27.91. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.53 and a quick ratio of 0.53.

Large investors have recently bought and sold shares of the business. Legal & General Group Plc increased its stake in AmTrust Financial Services by 34.6% during the 3rd quarter. Legal & General Group Plc now owns 43,000 shares of the insurance provider’s stock worth $580,000 after buying an additional 11,042 shares in the last quarter. Schwab Charles Investment Management Inc. increased its stake in AmTrust Financial Services by 3.0% during the 3rd quarter. Schwab Charles Investment Management Inc. now owns 829,629 shares of the insurance provider’s stock worth $11,167,000 after buying an additional 23,818 shares in the last quarter. FNY Managed Accounts LLC purchased a new stake in AmTrust Financial Services during the 3rd quarter worth approximately $298,000. Victory Capital Management Inc. purchased a new stake in AmTrust Financial Services during the 3rd quarter worth approximately $314,000. Finally, State Street Corp increased its stake in AmTrust Financial Services by 54.1% during the 2nd quarter. State Street Corp now owns 3,292,917 shares of the insurance provider’s stock worth $49,854,000 after buying an additional 1,156,431 shares in the last quarter. Institutional investors own 31.18% of the company’s stock.

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About AmTrust Financial Services

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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