Atlas Financial (NASDAQ: AFH) received a Buy rating and a $10 price target from Boenning & Scattergood analyst Robert Farnam today. The company’s shares closed yesterday at $8.25, close to its 52-week low of $8.05.
Farnam noted:
“We are upgrading our rating for Atlas’ common stock to Outperform from Neutral. Atlas booked a good 2Q18 on the heels of a solid 1Q18, continuing to move in the right direction as management works to rebuild investor trust following the company’s significant reserve charge in 4Q17. While the risk of additional adverse reserve development remains (two good quarters following the large reserve charge does not mean the company is out of the woods yet), we believe upside potential outweighs downside risk. The stock declined 40% in March upon the news of the reserve charge and is off an additional 25% since then, partly attributed, we believe, to a financial strength rating downgrade by A.M. Best and the stock’s removal from the Russell 2000. While certainly a negative, management does not expect the A.M.”
According to TipRanks.com, Farnam is a 1-star analyst with an average return of -2.3% and a 46.2% success rate. Farnam covers the Financial sector, focusing on stocks such as 1347 Property Insurance Holdings Inc, Hallmark Financial Services, and Selective Insurance Group.
Atlas Financial has an analyst consensus of Moderate Buy, with a price target consensus of $9.50.
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Based on Atlas Financial’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $5.53 million. In comparison, last year the company had a net profit of $5.51 million.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AFH in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Atlas Financial Holdings, Inc. engages in underwriting commercial automobile insurance policies through its subsidiaries. It focuses on the light commercial automobile sector, which includes taxi cabs, nonemergency para-transit, limousine, livery, and business auto. The company was founded on December 31, 2010 and is headquartered in Schaumburg, IL.
