Delphi Management Inc. MA Makes New $1.11 Million 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 bought a new stake in shares of First American Financial Corporation (NYSE:FAF - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 18,126 shares of the insurance provider's stock, valued at approximately $1,113,000.

Several other institutional investors have also added to or reduced their stakes in the company. Voya Investment Management LLC raised its position in shares of First American Financial by 3.7% in the 1st quarter. Voya Investment Management LLC now owns 12,896 shares of the insurance provider's stock worth $846,000 after purchasing an additional 460 shares during the last quarter. Lynx Investment Advisory increased its stake in shares of First American Financial by 22.9% in the 1st quarter. Lynx Investment Advisory now owns 9,492 shares of the insurance provider's stock worth $623,000 after purchasing an additional 1,771 shares in the last quarter. Invst LLC purchased a new stake in First American Financial in the first quarter worth about $761,000. Strs Ohio purchased a new stake in First American Financial in the 1st quarter worth approximately $2,647,000. Finally, WBI Investments LLC purchased a new stake in First American Financial in the 1st quarter worth $2,504,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Price Performance

NYSE FAF traded down $0.69 during trading hours on Friday, hitting $66.62. 239,110 shares of the company's stock traded hands, compared to its average volume of 871,979. The firm's 50-day moving average is $63.11 and its 200-day moving average is $61.44. The company has a market capitalization of $6.78 billion, a PE ratio of 36.77 and a beta of 1.27. First American Financial Corporation has a 52-week low of $53.09 and a 52-week high of $70.92.

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 for the quarter, topping the consensus estimate 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 company had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter last year, the firm posted $1.27 earnings per share. First American Financial's revenue was up 14.2% compared to the same quarter last year. Equities research analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current fiscal year.

First American Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 22nd will be given a $0.55 dividend. 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. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.3%. First American Financial's payout ratio is currently 121.55%.

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

Analyst Ratings Changes

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

Insiders Place Their Bets

In related 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 sale, the director owned 28,095 shares in the company, valued at $1,843,874.85. This represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 3.70% of the company's stock.

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.