United Services Automobile Association Invests $445,000 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 purchased a new stake in First American Financial Corporation (NYSE:FAF - Free Report) in the first quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 6,772 shares of the insurance provider's stock, valued at approximately $445,000.

Several other large investors also recently added to or reduced their stakes in FAF. Alpine Bank Wealth Management bought a new position in shares of First American Financial during the 1st quarter valued at approximately $28,000. Richardson Capital Management LLC bought a new stake in First American Financial in the first quarter worth $39,000. Versant Capital Management Inc boosted its stake in First American Financial by 645.7% during the first quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock worth $63,000 after buying an additional 833 shares during the period. UMB Bank n.a. increased its position in First American Financial by 132.1% during the first quarter. UMB Bank n.a. now owns 1,216 shares of the insurance provider's stock valued at $80,000 after acquiring an additional 692 shares during the last quarter. Finally, GAMMA Investing LLC increased its position in First American Financial by 23.9% during the first 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 last quarter. 89.05% of the stock is owned by institutional investors.

First American Financial Stock Down 0.7%

FAF traded down $0.46 on Friday, reaching $67.57. 405,260 shares of the company traded hands, compared to its average volume of 592,927. The company has a market cap of $6.88 billion, a P/E ratio of 37.33 and a beta of 1.27. First American Financial Corporation has a one year low of $53.09 and a one year high of $70.92. The firm has a fifty day simple moving average of $62.56 and a two-hundred day simple moving average of $61.37.

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

First American Financial Increases Dividend

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

First American Financial declared that its Board of Directors has approved a stock repurchase plan on Wednesday, July 23rd that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 5.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

FAF has been the subject of several analyst reports. Keefe, Bruyette & Woods raised their target price on shares of First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Barclays reduced their price objective on shares of First American Financial from $72.00 to $70.00 and set an "equal weight" rating on the stock 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 equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, First American Financial presently has a consensus rating of "Moderate Buy" and an average target price of $75.00.

Insiders Place Their Bets

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction on 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 of the company's stock, valued at $1,843,874.85. The trade was a 11.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.70% of the stock is currently owned by company insiders.

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.