Bank of America Corp DE Purchases Shares of 666,740 First American Financial Corporation $FAF

Key Points

• Bank of America acquired 666,740 shares of First American Financial in the second quarter, valued at approximately $45.7 million and representing a 0.65% stake. Institutional investors collectively own 89.05% of the company.
• First American Financial reported stronger-than-expected quarterly results, with earnings per share of $2.08 versus the $1.80 consensus estimate and revenue up 15% year over year to $2.11 billion.
• The company declared a quarterly dividend of $0.55 per share, equivalent to a 3.2% annual yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $84.60, above the reported share price of $69.41.

Bank of America Corp DE purchased a new stake in shares of First American Financial Corporation (NYSE:FAF - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 666,740 shares of the insurance provider's stock, valued at approximately $45,732,000. Bank of America Corp DE owned 0.65% of First American Financial as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently modified their holdings of FAF. BlackRock Inc. bought a new position in First American Financial during the second quarter valued at about $643,570,000. Dimensional Fund Advisors LP boosted its position in shares of First American Financial by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider's stock valued at $279,529,000 after purchasing an additional 245,279 shares in the last quarter. Capital Research Global Investors boosted its position in shares of First American Financial by 3.3% during the 4th quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider's stock valued at $209,868,000 after purchasing an additional 109,242 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of First American Financial by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider's stock worth $110,200,000 after purchasing an additional 19,752 shares during the last quarter. Finally, Reinhart Partners LLC. grew its stake in shares of First American Financial by 1.9% in the 2nd quarter. Reinhart Partners LLC. now owns 1,553,234 shares of the insurance provider's stock worth $106,537,000 after purchasing an additional 28,534 shares during the last quarter. Institutional investors own 89.05% of the company's stock.

First American Financial Trading Down 0.3%

Shares of First American Financial stock opened at $69.41 on Tuesday. The stock has a 50-day moving average price of $73.10 and a 200 day moving average price of $68.52. The company has a market cap of $7.09 billion, a P/E ratio of 9.61, a P/E/G ratio of 0.64 and a beta of 1.21. First American Financial Corporation has a 1 year low of $56.20 and a 1 year high of $79.87.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.28. First American Financial had a return on equity of 13.31% and a net margin of 9.33%.The company had revenue of $2.11 billion for the quarter, compared to analysts' expectations of $2.03 billion. During the same quarter in the previous year, the business posted $1.53 EPS. The business's revenue for the quarter was up 15.0% on a year-over-year basis. On average, equities analysts forecast that First American Financial Corporation will post 7.11 earnings per share for the current fiscal year.

First American Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, October 5th. Stockholders of record on Monday, September 28th will be paid a $0.55 dividend. The ex-dividend date of this dividend is Monday, September 28th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.2%. First American Financial's dividend payout ratio is 30.47%.

Insider Buying and Selling at First American Financial

In related news, CAO Steven Adams sold 3,253 shares of the stock in a transaction on Friday, July 24th. The stock was sold at an average price of $74.99, for a total transaction of $243,942.47. Following the completion of the sale, the chief accounting officer directly owned 10,234 shares in the company, valued at approximately $767,447.66. This trade represents a 24.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 3.50% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on FAF shares. Barclays lifted their price target on shares of First American Financial from $80.00 to $83.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 7th. Keefe, Bruyette & Woods increased their price objective on First American Financial from $84.00 to $86.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Weiss Ratings reissued a "buy (b)" rating on shares of First American Financial in a research note on Monday, July 20th. Benchmark started coverage on First American Financial in a report on Tuesday, July 21st. They issued a "buy" rating and a $85.00 target price on the stock. Finally, Stephens reaffirmed an "overweight" rating and set a $84.00 target price on shares of First American Financial in a research report on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, First American Financial presently has a consensus rating of "Moderate Buy" and a consensus target price of $84.60.

About First American Financial

First American Financial Corporation NYSE: FAF provides title insurance, settlement services and risk solutions for real estate transactions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in ownership records, liens and other title-related issues.

The company also offers escrow and closing services, real estate data and analytics, valuation products, and technology solutions designed to support mortgage lenders, real estate professionals, homebuilders and commercial property participants.

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