AlphaQuest LLC Raises Stock Position in First American Financial Corporation $FAF

Key Points

• AlphaQuest LLC significantly increased its holdings in First American Financial by 366.7%, owning 16,162 shares valued at approximately $1.06 million as of the latest report.
• First American Financial's board has authorized a $300 million stock repurchase plan, indicating that they believe their shares are undervalued.
• The company reported an EPS of $1.53 for the last quarter, surpassing analysts' expectations, and noted a 14.2% increase in revenue year-over-year.

AlphaQuest LLC increased its position in First American Financial Corporation (NYSE:FAF - Free Report) by 366.7% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 16,162 shares of the insurance provider's stock after buying an additional 12,699 shares during the period. AlphaQuest LLC's holdings in First American Financial were worth $1,061,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of FAF. Boston Partners lifted its stake in First American Financial by 23.0% in the 1st quarter. Boston Partners now owns 4,692,258 shares of the insurance provider's stock worth $307,181,000 after purchasing an additional 876,874 shares in the last quarter. Lazard Asset Management LLC raised its position in shares of First American Financial by 500.7% during the 4th quarter. Lazard Asset Management LLC now owns 1,003,327 shares of the insurance provider's stock valued at $62,646,000 after buying an additional 836,314 shares in the last quarter. Ariel Investments LLC raised its position in First American Financial by 9.9% in 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. Nuveen LLC purchased a new stake in First American Financial in the 1st quarter worth about $20,636,000. Finally, Balyasny Asset Management L.P. purchased a new stake in First American Financial in the 4th quarter worth about $19,377,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Trading Up 0.8%

Shares of NYSE FAF traded up $0.54 during midday trading on Friday, reaching $65.96. The company had a trading volume of 96,063 shares, compared to its average volume of 880,717. The business's 50-day simple moving average is $61.44 and its 200 day simple moving average is $61.19. The stock has a market cap of $6.71 billion, a P/E ratio of 36.44 and a beta of 1.24. First American Financial Corporation has a 1 year low of $53.09 and a 1 year high of $70.92.

First American Financial (NYSE:FAF - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.13. The business had revenue of $1.84 billion during 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 business's quarterly revenue was up 14.2% on a year-over-year basis. During the same quarter last year, the company posted $1.27 earnings per share. Analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial declared that its Board of Directors has initiated a stock buyback program on Wednesday, July 23rd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the insurance provider to reacquire up to 5.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of the firm'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 transaction, the director owned 28,095 shares of the company's stock, valued at approximately $1,843,874.85. This trade represents a 11.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 3.70% of the company's stock.

Analyst Ratings Changes

A number of research firms recently weighed in on FAF. Wall Street Zen raised shares of First American Financial from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Barclays reduced 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. Finally, Keefe, Bruyette & Woods increased 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. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $75.00.

First American Financial 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.