10,980 Shares in First American Financial Corporation $FAF Purchased by Bayforest Capital Ltd

Key Points

• Bayforest Capital Ltd acquired a $721,000 stake in First American Financial Corporation, purchasing 10,980 shares during the first quarter of the year.
• First American Financial recently declared a $300 million stock buyback program, indicating that management believes the stock is undervalued.
• The company's stock has a market capitalization of $6.94 billion and reported earnings of $1.53 per share last quarter, exceeding analysts' expectations.

Bayforest Capital Ltd acquired a new position in First American Financial Corporation (NYSE:FAF - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 10,980 shares of the insurance provider's stock, valued at approximately $721,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Captrust Financial Advisors raised its position in shares of First American Financial by 6.4% during the fourth quarter. Captrust Financial Advisors now owns 7,372 shares of the insurance provider's stock valued at $460,000 after buying an additional 442 shares during the last quarter. Focus Partners Wealth bought a new stake in First American Financial in the 4th quarter valued at $240,000. Jefferies Financial Group Inc. bought a new stake in First American Financial in the 4th quarter valued at $385,000. Lazard Asset Management LLC increased its holdings in First American Financial by 500.7% in the 4th quarter. Lazard Asset Management LLC now owns 1,003,327 shares of the insurance provider's stock valued at $62,646,000 after acquiring an additional 836,314 shares during the last quarter. Finally, Occudo Quantitative Strategies LP bought a new stake in First American Financial in the 4th quarter valued at $242,000. 89.05% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at First American Financial

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 shares were sold at an average price of $65.63, for a total value of $229,705.00. Following the completion of the transaction, 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 sale was disclosed in a filing with the SEC, which is available at this link. 3.70% of the stock is owned by insiders.

First American Financial Stock Performance

Shares of NYSE:FAF traded down $0.46 on Friday, reaching $67.57. The company's stock had a trading volume of 405,260 shares, compared to its average volume of 875,661. First American Financial Corporation has a 52-week low of $53.09 and a 52-week high of $70.92. The company has a market cap of $6.88 billion, a P/E ratio of 37.33 and a beta of 1.27. The company has a 50-day simple moving average of $62.48 and a 200 day simple moving average of $61.38.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings data 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 during the quarter, compared to analysts' expectations of $1.78 billion. During the same period last year, the company posted $1.27 EPS. The business's revenue was up 14.2% on a year-over-year basis. On average, equities research analysts forecast that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial declared that its board has approved a share repurchase program on Wednesday, July 23rd that permits the company to buyback $300.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 5.1% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

First American Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 22nd will be paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend 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 is 119.34%.

Wall Street Analyst Weigh In

FAF has been the topic of a number of research reports. Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Keefe, Bruyette & Woods lifted their price target on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Finally, Barclays reduced their price target on shares of First American Financial from $72.00 to $70.00 and set an "equal weight" rating on the stock in a report on Tuesday, July 8th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $75.00.

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.