Allianz Asset Management GmbH Purchases 46,066 Shares of First American Financial Corporation (NYSE:FAF)

Key Points

• Allianz Asset Management GmbH significantly increased its stake in First American Financial Corporation by purchasing 46,066 shares, raising its ownership by 49.8% to a total of 138,510 shares valued at approximately $9.09 million.
• First American Financial reported better-than-expected earnings, achieving $1.53 EPS against the estimated $1.40, with revenue of $1.84 billion surpassing analyst forecasts.
• The company has initiated a $300 million stock repurchase plan, reflecting confidence in its stock value, alongside announcing a quarterly dividend of $0.54 per share.

Allianz Asset Management GmbH lifted its position in First American Financial Corporation (NYSE:FAF - Free Report) by 49.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 138,510 shares of the insurance provider's stock after acquiring an additional 46,066 shares during the quarter. Allianz Asset Management GmbH owned approximately 0.13% of First American Financial worth $9,090,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Alpine Bank Wealth Management bought a new position in shares of First American Financial during the 1st quarter worth approximately $28,000. Richardson Capital Management LLC bought a new position in shares of First American Financial during the 1st quarter worth approximately $39,000. Versant Capital Management Inc lifted its position in shares of First American Financial by 645.7% during the 1st quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock worth $63,000 after buying an additional 833 shares in the last quarter. UMB Bank n.a. lifted its position 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 worth $80,000 after buying an additional 692 shares in the last quarter. Finally, GAMMA Investing LLC lifted 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 worth $87,000 after buying an additional 256 shares in the last quarter. Institutional investors own 89.05% of the company's stock.

First American Financial Stock Up 1.5%

First American Financial stock opened at $60.52 on Friday. First American Financial Corporation has a twelve month low of $53.09 and a twelve month high of $70.92. The firm has a 50 day moving average price of $58.15 and a 200-day moving average price of $60.92. The company has a market capitalization of $6.23 billion, a P/E ratio of 33.43 and a beta of 1.24.

First American Financial (NYSE:FAF - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, topping analysts' consensus estimates of $1.40 by $0.13. The firm had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.78 billion. First American Financial had a net margin of 2.90% and a return on equity of 10.42%. The company's quarterly revenue was up 14.2% on a year-over-year basis. During the same quarter last year, the business earned $1.27 earnings per share. Equities analysts expect that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial announced that its board has initiated a stock repurchase plan on Wednesday, July 23rd that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 5.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

First American Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 9th were given a $0.54 dividend. This represents a $2.16 annualized dividend and a dividend yield of 3.57%. The ex-dividend date of this dividend was Monday, June 9th. First American Financial's dividend payout ratio (DPR) is currently 119.34%.

Analyst Ratings Changes

Several equities analysts have commented on FAF shares. Wall Street Zen cut shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. Keefe, Bruyette & Woods lifted their target price on shares of First American Financial from $75.00 to $77.00 and gave the stock an "outperform" rating in a research report on Monday, April 28th. Finally, Barclays reduced 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. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $74.50.

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.

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