Equitable Trust Co. Invests $370,000 in First American Financial Corporation $FAF

Key Points

• Equitable Trust Co. has invested approximately $370,000 in First American Financial Corporation, acquiring 6,030 shares of its stock during the second quarter.
• First American Financial's quarterly earnings report showed an increase in revenue by 14.2% year-over-year, with earnings per share of $1.53, surpassing analysts' expectations.
• The company recently declared a quarterly dividend increase to $0.55 per share, representing a yield of 3.7%, despite a high dividend payout ratio of 121.55%.

Equitable Trust Co. bought a new position in First American Financial Corporation (NYSE:FAF - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 6,030 shares of the insurance provider's stock, valued at approximately $370,000.

Several other institutional investors and hedge funds have also recently made changes to their positions in FAF. Adams Wealth Management lifted its position 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 valued at $721,000 after buying an additional 207 shares during the period. CacheTech Inc. lifted its position in First American Financial by 1.9% during the first quarter. CacheTech Inc. now owns 10,983 shares of the insurance provider's stock valued at $721,000 after buying an additional 207 shares during the period. American Century Companies Inc. lifted its position 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 valued at $2,823,000 after buying an additional 229 shares during the period. GAMMA Investing LLC lifted its position 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 valued at $87,000 after buying an additional 256 shares during the period. Finally, Knightsbridge Asset Management LLC lifted its position 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 valued at $510,000 after buying an additional 281 shares during the period. Institutional investors own 89.05% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of First American Financial in a research report on Wednesday, October 8th. Keefe, Bruyette & Woods lifted their price target 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. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Barclays lifted their price target on First American Financial from $70.00 to $71.00 and gave the stock a "cautious" rating in a research report on Monday, October 6th. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $75.25.

First American Financial Stock Down 0.8%

First American Financial stock opened at $59.79 on Thursday. The business has a 50-day simple moving average of $64.60 and a two-hundred day simple moving average of $61.22. The company has a market cap of $6.09 billion, a P/E ratio of 33.03 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 released its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.40 by $0.13. The business had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.78 billion. First American Financial had a return on equity of 10.41% and a net margin of 2.90%.The business's quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.27 EPS. Research analysts anticipate that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Monday, September 22nd were paid a dividend of $0.55 per share. This is a boost from First American Financial's previous quarterly dividend of $0.54. The ex-dividend date was Monday, September 22nd. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.7%. First American Financial's dividend payout ratio is presently 121.55%.

First American Financial declared that its Board of Directors has initiated a share 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 stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity

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

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