Dimensional Fund Advisors LP Grows Stock Holdings in First American Financial Corporation $FAF

Key Points

• Dimensional Fund Advisors LP raised its position in First American Financial Corporation by 4.7%, now owning approximately 4.03% of the company, valued at $272 million.
• First American Financial reported a quarterly earnings per share of $1.53, exceeding expectations, and a revenue of $1.84 billion, marking a 14.2% year-over-year increase.
• The company has initiated a $300 million share repurchase program, indicating management's view that the company's shares are currently undervalued.

Dimensional Fund Advisors LP raised its stake in First American Financial Corporation (NYSE:FAF - Free Report) by 4.7% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,150,660 shares of the insurance provider's stock after acquiring an additional 187,144 shares during the quarter. Dimensional Fund Advisors LP owned approximately 4.03% of First American Financial worth $272,406,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Boston Partners grew its position in First American Financial by 23.0% during the first quarter. Boston Partners now owns 4,692,258 shares of the insurance provider's stock valued at $307,181,000 after acquiring an additional 876,874 shares during the period. Lazard Asset Management LLC lifted its stake in shares of First American Financial by 500.7% in the fourth quarter. Lazard Asset Management LLC now owns 1,003,327 shares of the insurance provider's stock worth $62,646,000 after acquiring an additional 836,314 shares in the last quarter. Capital International Investors acquired a new stake in First American Financial during the fourth quarter valued at approximately $41,626,000. Ariel Investments LLC raised its position in shares of First American Financial by 9.9% during the 4th quarter. Ariel Investments LLC now owns 3,993,155 shares of the insurance provider's stock worth $249,333,000 after purchasing an additional 359,777 shares during the period. Finally, Nuveen LLC bought a new position in First American Financial in the 1st quarter worth approximately $20,636,000. 89.05% of the stock is currently owned by institutional investors and hedge funds.

First American Financial Price Performance

Shares of NYSE:FAF traded up $2.1730 during midday trading on Friday, hitting $66.8330. 193,154 shares of the company's stock were exchanged, compared to its average volume of 891,935. The stock has a 50 day moving average price of $60.63 and a 200-day moving average price of $61.10. The company has a market cap of $6.80 billion, a PE ratio of 37.02 and a beta of 1.24. 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 released its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.40 by $0.13. The firm had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.78 billion. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The company's quarterly revenue was up 14.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.27 earnings per share. On average, analysts anticipate that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial announced that its board has initiated a share repurchase program 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 programs are often a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on FAF shares. Barclays reduced their price objective on First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 8th. Keefe, Bruyette & Woods increased their price objective on First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Finally, Wall Street Zen upgraded First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, First American Financial has an average rating of "Moderate Buy" and an average price target of $75.00.

Insider Activity at First American Financial

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total transaction of $229,705.00. Following the sale, the director directly owned 28,095 shares in the company, valued at approximately $1,843,874.85. This represents a 11.08% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 3.70% of the company's stock.

About First American Financial

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.