Caxton Associates LLP Buys Shares of 14,501 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 purchased a new stake in shares of First American Financial Corporation (NYSE:FAF - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 14,501 shares of the insurance provider's stock, valued at approximately $952,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Alpine Bank Wealth Management purchased a new position in First American Financial during the first quarter valued at $28,000. Richardson Capital Management LLC purchased a new stake in First American Financial during the first quarter valued at approximately $39,000. Versant Capital Management Inc increased its holdings in shares of First American Financial by 645.7% in the first quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock valued at $63,000 after purchasing an additional 833 shares during the period. UMB Bank n.a. lifted its holdings in shares of First American Financial by 132.1% in the 1st quarter. UMB Bank n.a. now owns 1,216 shares of the insurance provider's stock valued at $80,000 after buying an additional 692 shares during the period. Finally, GAMMA Investing LLC grew its position in shares of First American Financial by 23.9% during the 1st quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider's stock valued at $87,000 after acquiring an additional 256 shares during the period. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at First American Financial

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total value of $229,705.00. Following the transaction, the director directly owned 28,095 shares in the company, valued at $1,843,874.85. This represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 3.70% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

FAF has been the subject of a number of recent research reports. Keefe, Bruyette & Woods raised their target price on First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Barclays reduced their target price on First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a 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 report on Saturday, August 9th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, First American Financial presently has an average rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Stock Performance

Shares of FAF stock traded down $0.88 during mid-day trading on Tuesday, hitting $65.86. 638,306 shares of the stock traded hands, compared to its average volume of 572,127. The firm has a market cap of $6.70 billion, a price-to-earnings ratio of 36.39 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. The company's 50-day simple moving average is $62.76 and its 200-day simple moving average is $61.39.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results 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 return on equity of 10.41% and a net margin of 2.90%.The company had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the prior year, the company earned $1.27 earnings per share. The company's revenue for the quarter was up 14.2% on a year-over-year basis. Analysts forecast that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial declared that its board has authorized a stock repurchase program on Wednesday, July 23rd that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the insurance provider to purchase up to 5.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

First American Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 22nd will be issued a $0.55 dividend. This is a positive change from First American Financial's previous quarterly dividend of $0.54. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Monday, September 22nd. First American Financial's dividend payout ratio (DPR) is presently 119.34%.

About First American Financial

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.