Yesterday, First Acceptance Corporation (OTCMKTS:FACO) was one of the companies that had come into focus among investors after it announced its financial results for the quarter and the fiscal year, both of which had ended on December 31, 2021.
On Tuesday, FACO stock fell 0.48% to $$2.08 with 500 shares, compared to its average volume of 4.1K shares. The stock moved within a range of $1.9500 – 2.0800 after opening trade at $2.
First Acceptance Corporation Reports Operating Results for the Quarter and Year Ended December 31, 2021
Before income taxes, the company suffered a loss of as much as $7.5 million for the quarter and the net losses for the same period came in at $5.6 million. It was a significant reversal for First Acceptance considering the fact that the company had actually generated net income of $1.8 million in the prior year quarter.
The diluted loss per share for the period had come in at $0.15. In the prior year period, the company had actually generated earnings of $0.05 per diluted share. The losses for the fiscal year came in at $1.2 million net and that was again a major swing for First Acceptance as it had generated net income of $10.4 million.
It is now going to be interesting to see if the First Acceptance stock makes a move either way in the coming days. At the end of the day, the swing to losses may prove to be a source of pessimism for investors.
President and Chief Executive Officer, Larry Willeford, commented, “While our fourth quarter operating results were once again impacted by the unprecedented rapid rise in loss severity resulting from increased car prices and vehicle repair costs, we were encouraged that this industrywide situation appears to have stabilized. Additionally, to date, we have made significant progress in strengthening our premium rates in response to these increased claims costs.”
FACO stock is trading above the 20-Day and 50-Day Moving averages of $2.04 and $2.06 respectively. Moreover, the stock is trading is the neutral zone with RSI stands at 53.