Cramer Rosenthal Mcglynn LLC Cuts Stock Holdings in First American Financial Corporation $FAF

Key Points

• Cramer Rosenthal Mcglynn LLC has decreased its position in First American Financial Corporation by 10.9%, now holding 755,408 shares, which represents 3.6% of their total holdings.
• In recent analyst ratings, Keefe, Bruyette & Woods increased their price target for First American Financial from $77.00 to $79.00, while Barclays reduced theirs from $72.00 to $70.00, indicating differing outlooks among financial analysts.
• The company plans to repurchase up to $300 million worth of its own shares, reflecting confidence in its stock's undervaluation amidst strong recent earnings performance.

Cramer Rosenthal Mcglynn LLC trimmed its stake in First American Financial Corporation (NYSE:FAF - Free Report) by 10.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 755,408 shares of the insurance provider's stock after selling 92,435 shares during the period. First American Financial makes up approximately 3.6% of Cramer Rosenthal Mcglynn LLC's portfolio, making the stock its 2nd biggest holding. Cramer Rosenthal Mcglynn LLC owned approximately 0.73% of First American Financial worth $49,577,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Alpine Bank Wealth Management purchased a new stake in shares of First American Financial during the first quarter valued at approximately $28,000. Richardson Capital Management LLC bought a new stake in First American Financial in the first quarter valued at $39,000. Versant Capital Management Inc boosted its holdings in First American Financial by 645.7% in the first quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock valued at $63,000 after acquiring an additional 833 shares in the last quarter. UMB Bank n.a. lifted its position in First American Financial by 132.1% during the first quarter. UMB Bank n.a. now owns 1,216 shares of the insurance provider's stock valued at $80,000 after buying an additional 692 shares during the period. Finally, GAMMA Investing LLC grew its stake in shares of First American Financial by 23.9% in the 1st quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider's stock worth $87,000 after buying an additional 256 shares during the last quarter. 89.05% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

FAF has been the subject of a number of analyst reports. Keefe, Bruyette & Woods raised their price objective on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. 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 report on Tuesday, July 8th. Finally, Wall Street Zen upgraded First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Stock Performance

Shares of FAF traded down $1.11 during mid-day trading on Thursday, hitting $65.48. 473,398 shares of the stock were exchanged, compared to its average volume of 586,956. The company has a market cap of $6.67 billion, a PE ratio of 36.18 and a beta of 1.24. First American Financial Corporation has a 52-week low of $53.09 and a 52-week high of $70.92. The firm has a 50-day moving average of $61.44 and a two-hundred day moving average of $61.19.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.13. The business had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.78 billion. First American Financial had a return on equity of 10.41% and a net margin of 2.90%.The company's revenue for the quarter was up 14.2% on a year-over-year basis. During the same period in the prior year, the firm earned $1.27 EPS. On average, sell-side analysts predict that First American Financial Corporation will post 5.35 EPS for the current year.

First American Financial declared that its Board of Directors has approved a stock buyback plan on Wednesday, July 23rd that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 5.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at First American Financial

In other 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 transaction, 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 SEC, which can be accessed through the SEC website. Corporate 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.