Key Points
- Insider purchase: Director Parker S. Kennedy bought 15,000 shares on Feb. 13 at an average price of $67.17 (~$1.01M), raising his stake to 206,711 shares (a 7.82% increase), signaling insider confidence.
- Strong earnings and analyst support: FAF beat estimates with $1.99 EPS (vs. $1.49 expected) and $2.0B revenue (up 21.6% YoY), and several analysts raised price targets and ratings (consensus "Moderate Buy," average target ~$77.67; Truist $82).
- Dividend and market action: The company announced a $0.55 quarterly dividend (annualized $2.20, 3.3% yield; ex-dividend Mar. 9), yet shares were trading down about 2.7% intraday despite the positive news.
First American Financial Corporation (NYSE:FAF - Get Free Report) Director Parker Kennedy bought 15,000 shares of the business's stock in a transaction that occurred on Friday, February 13th. The shares were bought at an average cost of $67.17 per share, for a total transaction of $1,007,550.00. Following the completion of the purchase, the director owned 206,711 shares of the company's stock, valued at $13,884,777.87. This represents a 7.82% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.
First American Financial Trading Down 2.7%
FAF opened at $66.16 on Thursday. The company has a fifty day moving average price of $63.32 and a two-hundred day moving average price of $63.71. First American Financial Corporation has a 1-year low of $53.09 and a 1-year high of $68.75. The company has a market cap of $6.74 billion, a P/E ratio of 11.01, a price-to-earnings-growth ratio of 0.72 and a beta of 1.27.
First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The insurance provider reported $1.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.49 by $0.50. First American Financial had a net margin of 8.34% and a return on equity of 11.93%. The company had revenue of $2 billion for the quarter, compared to analysts' expectations of $1.80 billion. During the same quarter in the prior year, the firm earned $1.35 EPS. The business's revenue was up 21.6% on a year-over-year basis. On average, research analysts forecast that First American Financial Corporation will post 5.35 EPS for the current fiscal year.
First American Financial Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 9th will be issued a dividend of $0.55 per share. The ex-dividend date is Monday, March 9th. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. First American Financial's payout ratio is currently 36.61%.
Analysts Set New Price Targets
Several analysts recently issued reports on FAF shares. Barclays lifted their price target on shares of First American Financial from $68.00 to $70.00 and gave the company an "equal weight" rating in a research report on Friday, February 13th. Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a report on Sunday, December 14th. Stephens began coverage on shares of First American Financial in a research report on Friday, November 14th. They set an "equal weight" rating for the company. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of First American Financial in a research report on Friday, February 13th. Finally, Truist Financial boosted their price objective on First American Financial from $76.00 to $82.00 and gave the stock a "buy" rating in a report on Tuesday. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $77.67.
Check Out Our Latest Stock Report on FAF
First American Financial News Roundup
Here are the key news stories impacting First American Financial this week:
Institutional Trading of First American Financial
A number of institutional investors and hedge funds have recently modified their holdings of the business. V Square Quantitative Management LLC bought a new position in First American Financial in the 4th quarter valued at $27,000. Global Retirement Partners LLC boosted its holdings in shares of First American Financial by 1,107.5% in the 4th quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider's stock worth $30,000 after buying an additional 443 shares during the last quarter. SJS Investment Consulting Inc. boosted its holdings in shares of First American Financial by 2,887.5% in the 3rd quarter. SJS Investment Consulting Inc. now owns 478 shares of the insurance provider's stock worth $31,000 after buying an additional 462 shares during the last quarter. Elevation Point Wealth Partners LLC bought a new position in First American Financial during the second quarter valued at about $35,000. Finally, Atlantic Union Bankshares Corp purchased a new stake in First American Financial during the second quarter worth about $36,000. 89.05% of the stock is owned by hedge funds and other institutional investors.
First American Financial Company Profile
(
Get Free Report)
First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.
The company's title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.
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