AmTrust Financial Services (AFSI) Reaches New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified AmTrust Financial Services ( AFSI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AmTrust Financial Services as such a stock due to the following factors:

  • AFSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.1 million.
  • AFSI has traded 31,672 shares today.
  • AFSI is trading at a new lifetime high.

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More details on AFSI:

AmTrust Financial Services, Inc., through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally. It operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The stock currently has a dividend yield of 1.7%. AFSI has a PE ratio of 10.9. Currently there are 5 analysts that rate AmTrust Financial Services a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for AmTrust Financial Services has been 520,500 shares per day over the past 30 days. AmTrust Financial Services has a market cap of $4.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.01 and a short float of 14.1% with 17.89 days to cover. Shares are up 8.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AmTrust Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 29.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 53.78% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AFSI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Insurance industry and the overall market, AMTRUST FINANCIAL SERVICES's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Insurance industry average. The net income increased by 15.4% when compared to the same quarter one year prior, going from $66.67 million to $76.91 million.
  • AMTRUST FINANCIAL SERVICES has improved earnings per share by 7.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, AMTRUST FINANCIAL SERVICES increased its bottom line by earning $5.45 versus $3.49 in the prior year. For the next year, the market is expecting a contraction of 2.3% in earnings ($5.33 versus $5.45).

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