First American Financial Corporation $FAF Position Raised by Burgundy Asset Management Ltd.

Key Points

• Burgundy Asset Management Ltd. increased its stake in First American Financial Corporation by 7.2%, holding approximately 172,929 shares worth $11.35 million after acquiring an additional 11,672 shares in the first quarter.
• Analysts have a Moderate Buy rating on First American Financial, with a price target range of $70.00 to $79.00 following recent upgrades and downgrades from various brokerages.
• The company’s board has authorized a stock repurchase plan of up to $300 million, indicating confidence that its stock is undervalued, while recent earnings exceeded expectations with a 14.2% year-over-year revenue increase.

Burgundy Asset Management Ltd. raised its stake in First American Financial Corporation (NYSE:FAF - Free Report) by 7.2% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 172,929 shares of the insurance provider's stock after purchasing an additional 11,672 shares during the period. Burgundy Asset Management Ltd. owned 0.17% of First American Financial worth $11,349,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of the stock. Boston Partners grew its position in First American Financial by 23.0% during the 1st quarter. Boston Partners now owns 4,692,258 shares of the insurance provider's stock worth $307,181,000 after purchasing an additional 876,874 shares during the last quarter. Lazard Asset Management LLC boosted its stake in shares of First American Financial by 500.7% during the fourth quarter. Lazard Asset Management LLC now owns 1,003,327 shares of the insurance provider's stock worth $62,646,000 after buying an additional 836,314 shares during the period. Capital International Investors purchased a new position in shares of First American Financial during the fourth quarter worth about $41,626,000. Ariel Investments LLC increased its position in First American Financial by 9.9% in the 4th quarter. Ariel Investments LLC now owns 3,993,155 shares of the insurance provider's stock valued at $249,333,000 after acquiring an additional 359,777 shares during the period. Finally, Nuveen LLC acquired a new position in First American Financial in the 1st quarter valued at about $20,636,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Stock Up 3.6%

NYSE FAF traded up $2.2980 during mid-day trading on Friday, hitting $66.9580. The stock had a trading volume of 240,071 shares, compared to its average volume of 892,300. 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 $6.82 billion, a price-to-earnings ratio of 37.02 and a beta of 1.24. The company has a 50 day simple moving average of $60.63 and a 200 day simple moving average of $61.10.

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, beating 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 firm had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.78 billion. During the same period in the prior year, the company earned $1.27 EPS. The firm's revenue was up 14.2% on a year-over-year basis. As a group, equities analysts anticipate that First American Financial Corporation will post 5.35 earnings per share for the current fiscal year.

First American Financial announced that its board has initiated a share 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 stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at First American Financial

In other news, Director Margaret M. Mccarthy sold 3,500 shares of the firm'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 transaction, the director directly owned 28,095 shares in the company, 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 SEC, which is available through this hyperlink. Company insiders own 3.70% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on FAF shares. Keefe, Bruyette & Woods boosted their target price on First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Finally, Barclays reduced their price objective 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. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, First American Financial currently has a consensus rating of "Moderate Buy" and a consensus 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.