Delphi Management Inc. MA Makes New Investment in First American Financial Corporation $FAF

Key Points

• Delphi Management Inc. MA has made a new investment in First American Financial Corporation, purchasing 18,126 shares valued at approximately $1,113,000.
• First American Financial recently increased its quarterly dividend to $0.55, marking a boost from the previous $0.54, which presents a yield of 3.3%.
• Analysts have mixed opinions on First American Financial, with Barclays reducing their price target to $70.00, while Keefe, Bruyette & Woods raised theirs to $79.00 and rated it as "outperform."

Delphi Management Inc. MA purchased a new position in shares of First American Financial Corporation (NYSE:FAF - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 18,126 shares of the insurance provider's stock, valued at approximately $1,113,000.

A number of other large investors also recently added to or reduced their stakes in the company. Adams Wealth Management lifted its stake in First American Financial by 1.9% during the first quarter. Adams Wealth Management now owns 10,983 shares of the insurance provider's stock worth $721,000 after purchasing an additional 207 shares in the last quarter. CacheTech Inc. lifted its stake in First American Financial by 1.9% during the first quarter. CacheTech Inc. now owns 10,983 shares of the insurance provider's stock worth $721,000 after purchasing an additional 207 shares in the last quarter. American Century Companies Inc. lifted its stake in First American Financial by 0.5% during the first quarter. American Century Companies Inc. now owns 43,006 shares of the insurance provider's stock worth $2,823,000 after purchasing an additional 229 shares in the last quarter. GAMMA Investing LLC lifted its stake in First American Financial by 23.9% during the first quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider's stock worth $87,000 after purchasing an additional 256 shares in the last quarter. Finally, Knightsbridge Asset Management LLC lifted its stake in First American Financial by 3.7% during the first quarter. Knightsbridge Asset Management LLC now owns 7,778 shares of the insurance provider's stock worth $510,000 after purchasing an additional 281 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of the company's 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 owned 28,095 shares in the company, valued at $1,843,874.85. This represents a 11.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.70% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

FAF has been the topic of a number of recent research reports. Barclays cut their price objective on First American Financial from $72.00 to $70.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 8th. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Keefe, Bruyette & Woods upped their price objective on First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Three 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, First American Financial presently has an average rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Price Performance

NYSE:FAF opened at $67.57 on Friday. The firm has a market capitalization of $6.88 billion, a PE ratio of 37.33 and a beta of 1.27. The business's fifty day moving average price is $62.56 and its 200 day moving average price is $61.37. First American Financial Corporation has a 12 month low of $53.09 and a 12 month high of $70.92.

First American Financial (NYSE:FAF - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 EPS for the quarter, beating the consensus estimate of $1.40 by $0.13. The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. First American Financial had a return on equity of 10.41% and a net margin of 2.90%.First American Financial's revenue for the quarter was up 14.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.27 earnings per share. As a group, equities analysts anticipate that First American Financial Corporation will post 5.35 EPS for the current year.

First American Financial announced that its Board of Directors has authorized a stock repurchase program on Wednesday, July 23rd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the insurance provider to buy up to 5.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

First American Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 22nd will be issued a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 3.3%. This is a boost from First American Financial's previous quarterly dividend of $0.54. The ex-dividend date of this dividend is Monday, September 22nd. First American Financial's dividend payout ratio is currently 121.55%.

First American Financial 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.

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