Fairfax Financial (OTCMKTS:FRFHF) Shares Cross Below 50-Day Moving Average – Should You Sell?

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF)’s stock price passed below its 50 day moving average during trading on Wednesday . The stock has a 50 day moving average of $1,694.44 and traded as low as $1,567.00. Fairfax Financial shares last traded at $1,575.62, with a volume of 16,520 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Zacks Research raised shares of Fairfax Financial from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 5th. Scotiabank reissued an “outperform” rating on shares of Fairfax Financial in a research report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Fairfax Financial presently has a consensus rating of “Moderate Buy”.

Fairfax Financial Stock Performance

The stock’s 50-day simple moving average is $1,694.44 and its 200 day simple moving average is $1,722.38. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.66 and a current ratio of 3.66. The company has a market capitalization of $33.89 billion, a PE ratio of 7.79 and a beta of 0.53.

Fairfax Financial (OTCMKTS:FRFHF) last announced its quarterly earnings data on Thursday, April 30th. The financial services provider reported $31.11 EPS for the quarter, missing analysts’ consensus estimates of $36.17 by ($5.06). Fairfax Financial had a net margin of 14.16% and a return on equity of 15.05%. The firm had revenue of $7.82 billion during the quarter, compared to analysts’ expectations of $8.62 billion. As a group, research analysts expect that Fairfax Financial Holdings Ltd. will post 205.68 earnings per share for the current fiscal 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.