First Acceptance Corporation (OTCMKTS:FACO) Stock Continues to Trade in a Range After Recent Development
First Acceptance Corporation (OTCMKTS:FACO) is moving in a range after AM Best affirmed the Long-Term Issuer Credit Ratings of bb (Fair) and Financial Strength Rating of B (Fair) of its subsidiaries. At the same time, AM Best affirmed First Acceptance Corporation’s Long-Term Issuer Credit Ratings of b.
Market Stats
On Wednesday, FACO stock ended flat at $2.05 with more than 8.6K shares, compared to its average volume of 4.4K shares. The stock moved within a range of $2.0500 – 2.0500 after opening trading at $2.05.
AM Best Affirms Credit Ratings of First Acceptance Corporation and Its Subsidiaries
As a result, the Credit Ratings’ outlook is stable. The ratings take into account First Acceptance’s balance sheet stability, marginal operations performance, limited operating profile, and marginal business risk management.
Despite continuous operating performance issues and dividends of $16.9 million payable to the holding firm in 2021, the rating affirmation illustrates the group’s overall appropriate balance sheet resilience. The majority of the dividends were sent to shareholders. At the same time, a fraction was used to offer working capital to the linked agency, which was used to fund minor agency purchases partially. In addition, the group witnessed an improvement in frequency and intensity when a return to more regular driving habits occurred, with kilometers, are driven rising post-pandemic, as reported across the car industry. So, FACO is worth watching.
Traders Corner
FACO stock is above the 20-Day and 200-Day Moving averages of $2.05 and $2.01 respectively. The stock is trading in the neutral zone with the RSI at 49.
