Fairfax Financial (OTCMKTS:FRFHF) Shares Gap Up – Time to Buy?

Shares of Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF) gapped up before the market opened on Tuesday . The stock had previously closed at $1,577.00, but opened at $1,630.23. Fairfax Financial shares last traded at $1,594.89, with a volume of 232 shares traded.

Wall Street Analyst Weigh In

Separately, Zacks Research cut shares of Fairfax Financial from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy”.

Fairfax Financial Trading Up 0.4%

The stock has a market cap of $33.77 billion, a price-to-earnings ratio of 7.83 and a beta of 0.48. The business has a 50-day simple moving average of $1,652.90 and a two-hundred day simple moving average of $1,713.27. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.66 and a current ratio of 3.66.

Fairfax Financial (OTCMKTS:FRFHF) last posted its quarterly earnings data on Thursday, April 30th. The financial services provider reported $31.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $36.17 by ($5.06). The business had revenue of $7.82 billion during the quarter, compared to analyst estimates of $8.62 billion. Fairfax Financial had a net margin of 14.16% and a return on equity of 15.05%. As a group, research analysts forecast that Fairfax Financial Holdings Ltd. will post 184.47 EPS for the current year.

About Fairfax Financial

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.