First American Financial Corporation (FAF) – What Are Investment Firms Thinking About This Stock?

First American Financial Corporation (NYSE:FAF) has been given a consensus recommendation of “Moderate Buy” by the eight analysts that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $83.80.

A number of equities research analysts have commented on FAF shares. Weiss Ratings restated a “buy (b)” rating on shares of First American Financial in a research note on Monday, July 20th. Keefe, Bruyette & Woods raised their price target on First American Financial from $84.00 to $86.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Barclays decreased their target price on First American Financial from $83.00 to $79.00 and set an “overweight” rating on the stock in a research note on Monday, October 5th. Benchmark initiated coverage on shares of First American Financial in a report on Tuesday, July 21st. They issued a “buy” rating and a $85.00 target price on the stock. Finally, Zacks Research downgraded shares of First American Financial from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd.

First American Financial Price Performance

Shares of FAF opened at $60.85 on Tuesday. First American Financial has a one year low of $56.20 and a one year high of $79.87. The business has a fifty day moving average of $70.12 and a 200 day moving average of $68.49. The firm has a market capitalization of $6.21 billion, a P/E ratio of 8.43, a PEG ratio of 0.56 and a beta of 1.24.

First American Financial (NYSE:FAF) last posted its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.80 by $0.28. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. The company had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.03 billion. During the same quarter last year, the firm posted $1.53 earnings per share. The firm’s revenue was up 15.0% compared to the same quarter last year. Analysts expect that First American Financial will post 7.12 EPS for the current fiscal year.

First American Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, October 5th. Investors of record on Monday, September 28th were paid a dividend of $0.55 per share. The ex-dividend date of this dividend was Monday, September 28th. This represents a $2.20 dividend on an annualized basis and a yield of 3.6%. First American Financial’s dividend payout ratio is presently 33.80%.

Insider Transactions at First American Financial

In other news, CAO Steven Adams sold 3,253 shares of the company’s stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $74.99, for a total transaction of $243,942.47. Following the sale, the chief accounting officer directly owned 10,234 shares of the company’s stock, valued at $767,447.66. This represents a 24.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On First American Financial

Institutional investors and hedge funds have recently made changes to their positions in the business. NorthCrest Asset Manangement LLC bought a new position in shares of First American Financial in the 3rd quarter valued at about $421,000. GAMMA Investing LLC raised its position in First American Financial by 19.8% during the third quarter. GAMMA Investing LLC now owns 2,032 shares of the insurance provider’s stock valued at $123,000 after purchasing an additional 336 shares during the period. Farther Finance Advisors LLC raised its position in First American Financial by 9.4% during the third quarter. Farther Finance Advisors LLC now owns 4,292 shares of the insurance provider’s stock valued at $261,000 after purchasing an additional 367 shares during the period. Elevation Wealth Partners LLC lifted its stake in shares of First American Financial by 70.7% in the 3rd quarter. Elevation Wealth Partners LLC now owns 437 shares of the insurance provider’s stock valued at $27,000 after purchasing an additional 181 shares during the last quarter. Finally, Wealth Enhancement Trust Services Inc. boosted its holdings in shares of First American Financial by 140.0% in the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 600 shares of the insurance provider’s stock worth $36,000 after purchasing an additional 350 shares during the period. 89.05% of the stock is owned by hedge funds and other institutional investors.

About First American Financial

First American Financial Corporation (NYSE: FAF) provides title insurance, settlement services and related real estate transaction solutions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in title, liens and other issues affecting ownership or mortgage interests.

The company also offers escrow and closing services, title search and examination, property information, valuation, mortgage subservicing and other technology-enabled solutions for the real estate and mortgage industries.