United Services Automobile Association Buys New Holdings in First American Financial Corporation $FAF

Key Points

• United Services Automobile Association acquired 6,772 shares of First American Financial Corporation, valued at about $445,000, indicating growing institutional interest in the stock.
• First American Financial has announced an increase in its quarterly dividend from $0.54 to $0.55 per share, reflecting a robust financial performance with a 3.3% dividend yield.
• Wall Street analysts have rated First American Financial with a consensus of "Moderate Buy" and a revised price target of $75.00, highlighting potential growth for the company.

United Services Automobile Association bought a new stake in First American Financial Corporation (NYSE:FAF - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 6,772 shares of the insurance provider's stock, valued at approximately $445,000.

Several other hedge funds have also recently made changes to their positions in FAF. Alpine Bank Wealth Management bought a new stake in shares of First American Financial in the first quarter valued at $28,000. Richardson Capital Management LLC bought a new stake in shares of First American Financial in the first quarter valued at $39,000. Versant Capital Management Inc raised its stake 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 buying an additional 833 shares during the period. UMB Bank n.a. raised its stake in shares of First American Financial by 132.1% during the 1st quarter. UMB Bank n.a. now owns 1,216 shares of the insurance provider's stock valued at $80,000 after purchasing an additional 692 shares during the period. Finally, GAMMA Investing LLC raised its stake 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 purchasing an additional 256 shares during the period. 89.05% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

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

Insiders Place Their Bets

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

First American Financial Trading Down 0.8%

Shares of FAF traded down $0.50 during midday trading on Tuesday, reaching $66.24. The stock had a trading volume of 135,558 shares, compared to its average volume of 869,122. The company's 50-day moving average is $62.65 and its 200 day moving average is $61.36. First American Financial Corporation has a 12-month low of $53.09 and a 12-month high of $70.92. The company has a market capitalization of $6.74 billion, a price-to-earnings ratio of 36.58 and a beta of 1.26.

First American Financial (NYSE:FAF - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.78 billion. During the same period in the prior year, the business earned $1.27 EPS. The company's revenue for the quarter was up 14.2% compared to the same quarter last year. Research analysts forecast that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 22nd will be issued a dividend of $0.55 per share. The ex-dividend date is Monday, September 22nd. This represents a $2.20 annualized dividend and a yield of 3.3%. This is a boost from First American Financial's previous quarterly dividend of $0.54. First American Financial's dividend payout ratio (DPR) is currently 119.34%.

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

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.