Ariel Investments LLC Has $242.23 Million Stake in First American Financial Corporation $FAF

Key Points

• Ariel Investments LLC reduced its stake in First American Financial Corporation by 7.6%, now holding approximately 3.69 million shares, making up 2.8% of its total investment portfolio.
• First American Financial reported earnings of $1.53 per share for the last quarter, exceeding expectations, with a revenue increase of 14.2% year-over-year to $1.84 billion.
• The company announced a $300 million share repurchase program, indicating management's belief that the stock is undervalued.

Ariel Investments LLC lowered its stake in shares of First American Financial Corporation (NYSE:FAF - Free Report) by 7.6% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 3,690,878 shares of the insurance provider's stock after selling 302,277 shares during the period. First American Financial accounts for 2.8% of Ariel Investments LLC's investment portfolio, making the stock its 5th largest position. Ariel Investments LLC owned 3.59% of First American Financial worth $242,232,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. FJ Capital Management LLC raised its position in First American Financial by 11.7% in the first quarter. FJ Capital Management LLC now owns 71,490 shares of the insurance provider's stock valued at $4,692,000 after purchasing an additional 7,513 shares during the period. Cubist Systematic Strategies LLC acquired a new stake in First American Financial in the 1st quarter valued at about $15,580,000. MAI Capital Management increased its holdings in shares of First American Financial by 944.4% in the 1st quarter. MAI Capital Management now owns 6,778 shares of the insurance provider's stock valued at $445,000 after acquiring an additional 6,129 shares during the last quarter. Magnetar Financial LLC purchased a new position in shares of First American Financial in the 1st quarter valued at about $7,395,000. Finally, Carlson Capital L.P. purchased a new position in shares of First American Financial in the 1st quarter valued at about $630,000. Institutional investors and hedge funds own 89.05% of the company's stock.

First American Financial Trading Up 1.1%

Shares of FAF traded up $0.72 during midday trading on Friday, reaching $66.99. 712,158 shares of the company were exchanged, compared to its average volume of 508,997. First American Financial Corporation has a 1-year low of $53.09 and a 1-year high of $70.92. The company has a market cap of $6.82 billion, a price-to-earnings ratio of 37.01 and a beta of 1.27. The stock has a 50-day moving average price of $62.09 and a 200-day moving average price of $61.26.

First American Financial (NYSE:FAF - Get Free Report) last announced its earnings results 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 business had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. During the same period in the previous year, the company earned $1.27 earnings per share. The company's revenue for the quarter was up 14.2% compared to the same quarter last year. Equities research analysts anticipate that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial announced that its Board of Directors has authorized a stock buyback plan on Wednesday, July 23rd that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the insurance provider to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on FAF. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Barclays dropped their price objective on First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods raised 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. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, First American Financial currently has a consensus rating of "Moderate Buy" and an average target price of $75.00.

Insiders Place Their Bets

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total value 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 3.70% of the stock is currently owned by corporate insiders.

First American Financial Company 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.