First American Financial Corporation (FAF) - What Are Analysts Thinking About This Stock?

Key Points

• Analysts remain generally positive: Seven of eight covering firms rate First American Financial a “buy,” while one recommends holding the stock. The average 12-month price target is $83.80.
• Quarterly results exceeded expectations: The company reported $2.08 in earnings per share versus the $1.80 consensus estimate, while revenue reached $2.11 billion, up 15% year over year.
• Shareholder returns remain notable: First American Financial paid a quarterly dividend of $0.55, representing a 3.6% annualized yield, and institutional investors own approximately 89.05% of the company.

Shares of First American Financial Corporation (NYSE:FAF - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eight research firms that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $83.80.

FAF has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods increased their price target on shares of First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a report on Friday, July 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of First American Financial in a research note on Monday, July 20th. Barclays decreased their target price on shares of First American Financial from $83.00 to $79.00 and set an "overweight" rating on the stock in a report on Monday, October 5th. Benchmark started coverage on shares of First American Financial in a research note 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 Stock Performance

NYSE:FAF opened at $60.85 on Tuesday. First American Financial has a 52-week low of $56.20 and a 52-week high of $79.87. The firm has a market cap of $6.21 billion, a price-to-earnings ratio of 8.43, a PEG ratio of 0.56 and a beta of 1.24. The business's fifty day moving average is $70.12 and its 200 day moving average is $68.49.

First American Financial (NYSE:FAF - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 EPS for the quarter, topping the consensus estimate of $1.80 by $0.28. The business had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.03 billion. First American Financial had a return on equity of 13.31% and a net margin of 9.33%. The firm's revenue was up 15.0% compared to the same quarter last year. During the same quarter last year, the company earned $1.53 EPS. Equities analysts predict that First American Financial will post 7.12 EPS for the current fiscal year.

First American Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 5th. Investors of record on Monday, September 28th were given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date was Monday, September 28th. First American Financial's dividend payout ratio (DPR) is 33.80%.

Insider Activity

In related news, CAO Steven Adams sold 3,253 shares of First American Financial stock in a transaction 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 completion of the sale, the chief accounting officer owned 10,234 shares of the company's stock, valued at approximately $767,447.66. This trade represents a 24.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 3.50% of the company's stock.

Hedge Funds Weigh In On First American Financial

A number of institutional investors have recently added to or reduced their stakes in FAF. Duncker Streett & Co. Inc. boosted its position in shares of First American Financial by 616.4% in the 1st quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider's stock worth $26,000 after purchasing an additional 376 shares in the last quarter. Elevation Wealth Partners LLC increased its stake in First American Financial by 70.7% during 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 in the last quarter. Wealth Enhancement Trust Services Inc. raised its holdings in First American Financial by 140.0% in the third quarter. Wealth Enhancement Trust Services Inc. now owns 600 shares of the insurance provider's stock worth $36,000 after buying an additional 350 shares during the last quarter. SHP Wealth Management purchased a new stake in shares of First American Financial during the fourth quarter valued at approximately $51,000. Finally, Global Retirement Partners LLC purchased a new stake in First American Financial during the 2nd quarter valued at $55,000. 89.05% of the stock is currently owned by institutional investors.

First American Financial Company Profile

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.

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