Dynamic Technology Lab Private Ltd Acquires New Shares in First American Financial Corporation $FAF

Key Points

• Dynamic Technology Lab Private Ltd acquired 14,200 shares of First American Financial, raising their investment to approximately $932,000.
• First American Financial reported $1.53 earnings per share for the last quarter, exceeding analysts' estimates and showing a 14.2% revenue increase year-over-year.
• The company announced a $300 million share repurchase program, allowing it to buy back up to 5.1% of its shares, indicating management's belief in the stock's undervaluation.

Dynamic Technology Lab Private Ltd purchased a new stake in First American Financial Corporation (NYSE:FAF - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 14,200 shares of the insurance provider's stock, valued at approximately $932,000.

Other institutional investors also recently modified their holdings of the company. Principal Financial Group Inc. increased its holdings in shares of First American Financial by 0.3% in the first quarter. Principal Financial Group Inc. now owns 236,876 shares of the insurance provider's stock valued at $15,546,000 after buying an additional 794 shares in the last quarter. GAMMA Investing LLC grew its position in First American Financial by 23.9% during the 1st 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. Cetera Investment Advisers grew its position in First American Financial by 137.8% during the 1st quarter. Cetera Investment Advisers now owns 21,091 shares of the insurance provider's stock worth $1,384,000 after purchasing an additional 12,222 shares in the last quarter. Envestnet Asset Management Inc. grew its position in First American Financial by 2.8% during the 1st quarter. Envestnet Asset Management Inc. now owns 132,150 shares of the insurance provider's stock worth $8,673,000 after purchasing an additional 3,557 shares in the last quarter. Finally, Bar Harbor Wealth Management grew its position in First American Financial by 30.5% during the 1st quarter. Bar Harbor Wealth Management now owns 126,093 shares of the insurance provider's stock worth $8,275,000 after purchasing an additional 29,466 shares in the last quarter. Institutional investors own 89.05% of the company's stock.

First American Financial Stock Down 0.7%

Shares of First American Financial stock traded down $0.46 on Friday, hitting $67.57. 405,260 shares of the company traded hands, compared to its average volume of 571,717. The company has a 50-day moving average price of $62.56 and a 200 day moving average price of $61.35. First American Financial Corporation has a 12-month low of $53.09 and a 12-month high of $70.92. The company has a market cap of $6.88 billion, a PE ratio of 37.33 and a beta of 1.26.

First American Financial (NYSE:FAF - Get Free Report) last posted its quarterly 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. 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 for the quarter, compared to analysts' expectations of $1.78 billion. During the same period in the previous year, the company posted $1.27 EPS. First American Financial's revenue was up 14.2% on a year-over-year basis. Equities research analysts anticipate that First American Financial Corporation will post 5.35 EPS for the current year.

First American Financial announced that its board has initiated a stock repurchase plan on Wednesday, July 23rd that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 5.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

First American Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Stockholders of record on Monday, September 22nd will be issued a dividend of $0.55 per share. The ex-dividend date is Monday, September 22nd. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. This is an increase from First American Financial's previous quarterly dividend of $0.54. First American Financial's dividend payout ratio is presently 119.34%.

Insider Activity at First American Financial

In related 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 sale, the director owned 28,095 shares of the company's stock, valued at approximately $1,843,874.85. The trade was a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 3.70% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Keefe, Bruyette & Woods lifted their price objective on shares of First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research 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 report on Saturday, August 9th. Finally, Barclays lowered their price objective on shares of 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. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $75.00.

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.