American Financial Group (AFG), a stalwart in the insurance and financial services industry, often flies under the radar. Known for its conservative approach and steady growth, AFG might not be the first name that pops into your head when you think of disruptive market moves. But a closer look at their recent financial data, particularly the figures from the last quarter, reveals a curious anomaly that could signal a significant shift in the company's strategy.

AFG's preferred stock, traded under the ticker AFGB, presents a fascinating case. While market capitalization for preferred stocks can be tricky to calculate due to their unique dividend structure, a glaring "-1" value raises eyebrows. This unusual figure, often a placeholder for unavailable data, begs the question: is this simply a data glitch or a deliberate omission hinting at something bigger?

Declining Shares Outstanding: A Sign of Consolidation?

Further examination of the financial data reveals a pattern of declining common stock shares outstanding. From a peak of 123.1 million in 2007, the number has steadily shrunk to 84.8 million in 2023. This consistent share buyback program points to a conscious effort by AFG to consolidate ownership and potentially bolster its stock price. But could this be part of a grander plan?

A Mountain of Cash: Gearing Up for a Major Investment?

What truly stands out is the substantial increase in AFG's cash and short-term investments over the past few years. From a low of $35.15 billion in 2015, this figure has fluctuated but remains significant, currently sitting at $17.46 billion. This enormous cash stockpile, coupled with a relatively low debt level, paints a picture of a company poised for a major investment.