Caxton Associates LLP Makes New Investment in First American Financial Corporation $FAF

Key Points

• Caxton Associates LLP acquired 14,501 shares of First American Financial Corporation, valued at approximately $952,000, in the first quarter of the fiscal year.
• First American Financial announced a dividend increase to $0.55 per share, representing an annualized amount of $2.20 and a yield of 3.3%.
• The company's stock is currently rated as a "Moderate Buy" by analysts, with a consensus target price of $75.00.

Caxton Associates LLP acquired a new stake in First American Financial Corporation (NYSE:FAF - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 14,501 shares of the insurance provider's stock, valued at approximately $952,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in FAF. Captrust Financial Advisors raised its position in First American Financial by 6.4% in the fourth quarter. Captrust Financial Advisors now owns 7,372 shares of the insurance provider's stock worth $460,000 after purchasing an additional 442 shares in the last quarter. Focus Partners Wealth bought a new stake in shares of First American Financial in the 4th quarter valued at approximately $240,000. Jefferies Financial Group Inc. acquired a new position in shares of First American Financial in the 4th quarter worth approximately $385,000. Occudo Quantitative Strategies LP bought a new position in shares of First American Financial during the 4th quarter worth approximately $242,000. Finally, Nomura Holdings Inc. acquired a new stake in First American Financial in the 4th quarter valued at $853,000. 89.05% of the stock is owned by institutional investors.

First American Financial Stock Down 0.7%

Shares of First American Financial stock traded down $0.46 during trading on Friday, reaching $67.57. 405,260 shares of the company were exchanged, compared to its average volume of 592,927. The business has a 50-day moving average price of $62.56 and a 200-day moving average price of $61.37. The firm has a market capitalization of $6.88 billion, a price-to-earnings ratio of 37.33 and a beta of 1.27. First American Financial Corporation has a twelve month low of $53.09 and a twelve month high of $70.92.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.40 by $0.13. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The firm had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the previous year, the company earned $1.27 earnings per share. The business's revenue for the quarter was up 14.2% on a year-over-year basis. On average, equities research analysts forecast that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial announced that its Board of Directors has approved a stock repurchase program on Wednesday, July 23rd that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the insurance provider to repurchase up to 5.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

First American Financial Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 22nd will be paid a $0.55 dividend. The ex-dividend date of this dividend is Monday, September 22nd. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. This is a positive change from First American Financial's previous quarterly dividend of $0.54. First American Financial's dividend payout ratio (DPR) is 121.55%.

Insider Activity at First American Financial

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total value of $229,705.00. Following the sale, the director owned 28,095 shares in the company, valued at approximately $1,843,874.85. The trade was a 11.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 3.70% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Keefe, Bruyette & Woods lifted their price objective on First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Barclays dropped their target price on shares of First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a research report on Tuesday, July 8th. Finally, Wall Street Zen raised shares of First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $75.00.

First American Financial Profile

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.