Fidelity National Financial (NYSE:FNF) Shares Gap Down on Disappointing Earnings

Key Points

• Disappointing quarter: FNF reported $0.93 EPS vs. $1.09 expected and revenue of $3.23B vs. $3.61B expected, prompting the stock to gap down from $51.29 to an open of $47.30 and last trading around $48.73.
• Dividend yield high but payout stretched: The company pays a quarterly dividend of $0.52 ($2.08 annual) for a 4.2% yield, but the payout ratio is a high 97.65%.
• Mixed analyst response: Several firms lowered price targets and ratings (two Buys, two Holds), leaving a consensus "Moderate Buy" and a target price of $62.67.

Fidelity National Financial, Inc. (NYSE:FNF - Get Free Report)'s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $51.29, but opened at $47.30. Fidelity National Financial shares last traded at $48.73, with a volume of 434,279 shares changing hands.

The financial services provider reported $0.93 EPS for the quarter, missing analysts' consensus estimates of $1.09 by ($0.16). The business had revenue of $3.23 billion during the quarter, compared to the consensus estimate of $3.61 billion. Fidelity National Financial had a return on equity of 15.06% and a net margin of 4.17%.The business's quarterly revenue was up 18.2% on a year-over-year basis. During the same period last year, the firm earned $0.78 EPS.

Fidelity National Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were issued a dividend of $0.52 per share. The ex-dividend date of this dividend was Tuesday, March 17th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 4.2%. Fidelity National Financial's payout ratio is 97.65%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Keefe, Bruyette & Woods lowered their price target on shares of Fidelity National Financial from $71.00 to $67.00 and set an "outperform" rating on the stock in a report on Friday, April 10th. Barclays lowered their target price on shares of Fidelity National Financial from $63.00 to $54.00 and set an "equal weight" rating on the stock in a research note on Monday, April 6th. Weiss Ratings lowered shares of Fidelity National Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, March 2nd. National Bank Financial set a $67.00 target price on shares of Fidelity National Financial in a research note on Friday, April 10th. Finally, Wall Street Zen downgraded shares of Fidelity National Financial from a "buy" rating to a "hold" rating in a research report on Monday, January 26th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $62.67.

Hedge Funds Weigh In On Fidelity National Financial

Several large investors have recently bought and sold shares of FNF. Windacre Partnership LLC boosted its stake in Fidelity National Financial by 31.0% in the third quarter. Windacre Partnership LLC now owns 18,905,100 shares of the financial services provider's stock valued at $1,143,569,000 after acquiring an additional 4,477,900 shares in the last quarter. Norges Bank acquired a new position in Fidelity National Financial in the fourth quarter valued at $181,017,000. Alliancebernstein L.P. boosted its stake in Fidelity National Financial by 167.8% in the third quarter. Alliancebernstein L.P. now owns 4,741,145 shares of the financial services provider's stock valued at $286,792,000 after acquiring an additional 2,970,460 shares in the last quarter. AQR Capital Management LLC boosted its stake in Fidelity National Financial by 75.4% in the third quarter. AQR Capital Management LLC now owns 5,057,355 shares of the financial services provider's stock valued at $304,503,000 after acquiring an additional 2,174,220 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab acquired a new position in Fidelity National Financial in the fourth quarter valued at $36,362,000. Institutional investors and hedge funds own 81.17% of the company's stock.

Fidelity National Financial Stock Down 4.2%

The business's fifty day moving average price is $48.64 and its 200 day moving average price is $53.41. The company has a quick ratio of 0.24, a current ratio of 0.24 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $13.22 billion, a PE ratio of 23.09, a PEG ratio of 0.65 and a beta of 1.00.

About Fidelity National Financial

Fidelity National Financial NYSE: FNF is a leading provider of title insurance and transaction services to the real estate and mortgage industries. The company underwrites title insurance policies that protect property owners and lenders against title defects, liens, and other encumbrances. Alongside its core title insurance operations, FNF offers escrow and closing services, e-recording solutions, and real estate data and analytics through a network of agents and underwriters.

FNF operates through two primary segments: Title Insurance and Specialty Insurance and Services.

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