Investor Insights

This summary was created by AI, based on 9 opinions in the last 12 months.

The experts are quite positive about Definity Financial (DFY-T). They point out its strong recent results, including premiums covering expenses and a 16% dividend raise. They believe the company has good upside potential and is either going to make acquisitions or be acquired. Additionally, the company's possible creeping takeover and its leverage restrictions reduction are seen as positive developments. Overall, the experts find it to be a good time to buy this stock.

Consensus
Buy
Valuation
Undervalued
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
Definity Financial
(A Top Pick Dec 14/23, Up 19.7%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with DFY is progressing well.  To remain disciplined, we recommend trailing up the stop (from $37) to $41 at this time.  If triggered, this would result in a net investment gain of 16%, including the previous recommendation to cover half the position.

Financial Services
PAST TOP PICK
Definity Financial
(A Top Pick Mar 27/23, Up 29%)

Very strong results recently. Premiums more than covered expenses. Raised dividend by 16%. Now allowed to lever balance sheet to make acquisitions. Growing faster than IFC, which is #1 in Canada. Trades at big discount (1.8x book value) to IFC (2.8x). Really good upside. 

Swiss Reinsurance just purchased 10% of company. Possible creeping takeover? DFY is either going to make acquisitions or be acquired. Good time to buy.

Financial Services
BUY ON WEAKNESS
Definity Financial

A Canadian P&C name to own in the space.

Financial Services
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
Definity Financial
(A Top Pick Dec 14/23, Up 21.1%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with DFY has achieved its $44 target.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $31) to $37.  

Financial Services
BUY ON WEAKNESS
Definity Financial

Likes it. Trades at a PEG ratio similar to IFC, and has exciting things happening.

Financial Services
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Definity Financial
Stockchase Research Editor: Michael O'Reilly

DFY is the financial holding company for one of the leading property and casualty insurers in Canada, with nearly $4 billion in annual gross premiums.  They are completing compliance approvals to reduce its leverage restrictions, allowing for a $550 million increase in their credit facility to grow their business.  It trades at 14x earnings, under 2x book and supports an 18% ROE.  We recommend placing a stop-loss at $31, looking to achieve $44 -- upside potential of over 18%.  Yield 1.4%

(Analysts’ price target is $43.55)
Financial Services
PAST TOP PICK
Definity Financial
(A Top Pick Jun 05/23, Down 0.2%)

Likes it long term. Management expects price increases which sets it up for a great bottom line in 2024. Last week, they reported a massive 27% earnings beat which caught people's attention.

Financial Services
BUY
Definity Financial

Cheap and growing fast.

Financial Services
PAST TOP PICK
Definity Financial
(A Top Pick Feb 28/23, Down 1%)

Rising cost of insurance due to inflation - hard on business margins.
Long term, still believes in business.
Insurance a required product for all people.
Largest provider of pet insurance. 


Financial Services
TOP PICK
Definity Financial

This is a buy for the long term, not a trade. It is doing a lot over the next year to improve the bottom line and is a new story in the insurance business.
Buy 7  Hold 4  Sell 0

(Analysts’ price target is $42.95)

Financial Services
TOP PICK
Definity Financial

 Although not well known it is Canada's 7th biggest property/casualty insurance company. 70% is personal insurance and 30% is commercial. Its IPO was 18 months ago on the TSX and it is now trading at 1 1/2 times BV. It can grow organically and can now leverage its balance sheet to make acquisitions. After a nice run along with a recent pull-back, he is buying more. It is profitable and growing faster than Intact Insurance, the gold standard in Canada.
Buy 7   Hold 4   Sell 0 

Financial Services
TOP PICK
Definity Financial

Up 30% in one year and the biggest IPO of 2021. Their combined ratio went from 110% to 90%, from losing to making money. Pays a 1.3% dividend. Also they have a pet insurance business, a lucrative space.

(Analysts’ price target is $42.95)
Financial Services
BUY ON WEAKNESS
Definity Financial

Well managed company that will perform well.
Higher interest rates will benefit company.
Does not own shares, but thinks is a good business.
Hold for the long term and dividend yield. 

Financial Services
BUY
Definity Financial
Small, junior version of IFC, which he does own. Prefers IFC with its scale, breadth, and geographic diversification. P&C has been in the sweet spot. Likes it. If he were going to own another, this would probably be the one.
Financial Services
WAIT
Definity Financial
They added it to the portfolio earlier this year. It is in the property and casualty insurance business and is inexpensive compared to Intact Financial, its main peer. It has great pricing power and good growth. Wait for a pullback.
Financial Services
Showing 1 to 15 of 16 entries

Definity Financial(DFY-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 8

Stockchase rating for Definity Financial is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Definity Financial(DFY-T) Frequently Asked Questions

What is Definity Financial stock symbol?

Definity Financial is a Canadian stock, trading under the symbol DFY-T on the Toronto Stock Exchange (DFY-CT). It is usually referred to as TSX:DFY or DFY-T

Is Definity Financial a buy or a sell?

In the last year, 8 stock analysts published opinions about DFY-T. 8 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Definity Financial.

Is Definity Financial a good investment or a top pick?

Definity Financial was recommended as a Top Pick by on . Read the latest stock experts ratings for Definity Financial.

Why is Definity Financial stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Definity Financial worth watching?

8 stock analysts on Stockchase covered Definity Financial In the last year. It is a trending stock that is worth watching.

What is Definity Financial stock price?

On 2024-04-19, Definity Financial (DFY-T) stock closed at a price of $44.3.