First American Financial Corporation $FAF Shares Acquired by AQR Capital Management LLC

Key Points

• AQR Capital Management LLC increased its stake in First American Financial Corporation by 51.2%, acquiring an additional 227,382 shares, bringing its total holdings to approximately 671,616 shares valued at around $44 million.
• First American Financial's Board of Directors approved a $300 million stock buyback plan, allowing the company to repurchase up to 5.1% of its outstanding shares, signaling a belief that its stock is undervalued.
• Analysts are generally optimistic with a consensus rating of "Moderate Buy" and a price target around $75, following recent earnings that exceeded expectations with a 14.2% year-over-year revenue increase.

AQR Capital Management LLC raised its holdings in First American Financial Corporation (NYSE:FAF - Free Report) by 51.2% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 671,616 shares of the insurance provider's stock after purchasing an additional 227,382 shares during the quarter. AQR Capital Management LLC owned 0.65% of First American Financial worth $44,058,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also modified their holdings of the company. Principal Financial Group Inc. boosted its stake in shares of First American Financial by 0.3% in the first quarter. Principal Financial Group Inc. now owns 236,876 shares of the insurance provider's stock valued at $15,546,000 after buying an additional 794 shares in the last quarter. GAMMA Investing LLC lifted its holdings in First American Financial by 23.9% in 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 period. Cetera Investment Advisers lifted its holdings in First American Financial by 137.8% in the first quarter. Cetera Investment Advisers now owns 21,091 shares of the insurance provider's stock valued at $1,384,000 after acquiring an additional 12,222 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of First American Financial by 2.8% during the 1st quarter. Envestnet Asset Management Inc. now owns 132,150 shares of the insurance provider's stock worth $8,673,000 after purchasing an additional 3,557 shares in the last quarter. Finally, Bar Harbor Wealth Management grew its stake in shares of First American Financial by 30.5% during the 1st quarter. Bar Harbor Wealth Management now owns 126,093 shares of the insurance provider's stock worth $8,275,000 after purchasing an additional 29,466 shares during the period. 89.05% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at First American Financial

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total transaction of $229,705.00. Following the sale, the director directly owned 28,095 shares of the company's stock, valued at $1,843,874.85. This trade represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 3.70% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently commented on FAF. Keefe, Bruyette & Woods raised their price objective on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. Wall Street Zen upgraded First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, Barclays reduced their price objective 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. 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, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $75.00.

First American Financial Stock Down 0.7%

Shares of First American Financial stock traded down $0.46 during trading on Friday, hitting $67.57. 405,260 shares of the company were exchanged, compared to its average volume of 592,927. First American Financial Corporation has a fifty-two week low of $53.09 and a fifty-two week high of $70.92. The firm has a 50 day moving average price of $62.56 and a 200 day moving average price of $61.40. The stock 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 (NYSE:FAF - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 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 firm had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the prior year, the firm earned $1.27 EPS. First American Financial's quarterly revenue was up 14.2% on a year-over-year basis. Analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial declared that its Board of Directors has initiated 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 shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

First American Financial Increases Dividend

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