First American Financial Corporation $FAF Stock Bought by Sterling Capital Management LLC

Key Points

• Sterling Capital Management more than doubled its First American Financial stake in the third quarter, increasing holdings by 123.6% to 39,467 shares valued at approximately $2.4 million. Institutional investors collectively own 89.05% of the company.
• First American Financial reported third-quarter EPS of $1.78, below the $1.85 consensus estimate, while revenue of $2.09 billion also slightly missed expectations. Commercial title activity helped offset weakness in the residential market.
• The company maintains a quarterly dividend of $0.55, equivalent to a 3.4% annualized yield, while analysts remain broadly positive with a “Moderate Buy” consensus rating and an average price target of $81.60.

Sterling Capital Management LLC grew its holdings in First American Financial Corporation (NYSE:FAF - Free Report) by 123.6% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 39,467 shares of the insurance provider's stock after purchasing an additional 21,819 shares during the period. Sterling Capital Management LLC's holdings in First American Financial were worth $2,397,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently bought and sold shares of the stock. Root Financial Partners LLC purchased a new stake in First American Financial in the third quarter valued at approximately $32,000. Obermeyer Wealth Partners acquired a new stake in shares of First American Financial during the third quarter worth about $1,144,000. Vest Financial LLC lifted its position in shares of First American Financial by 36.0% during the third quarter. Vest Financial LLC now owns 111,713 shares of the insurance provider's stock worth $6,785,000 after purchasing an additional 29,590 shares in the last quarter. First Citizens Bank & Trust Co. purchased a new position in shares of First American Financial in the third quarter valued at approximately $604,000. Finally, NorthCrest Asset Manangement LLC purchased a new position in shares of First American Financial in the third quarter valued at approximately $421,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Price Performance

NYSE FAF opened at $64.61 on Monday. The firm's fifty day moving average price is $68.44 and its 200 day moving average price is $68.82. First American Financial Corporation has a 12 month low of $56.20 and a 12 month high of $79.87. The company has a market capitalization of $6.60 billion, a price-to-earnings ratio of 9.10, a price-to-earnings-growth ratio of 0.61 and a beta of 1.24.

First American Financial (NYSE:FAF - Get Free Report) last posted its earnings results on Wednesday, October 21st. The insurance provider reported $1.78 earnings per share for the quarter, missing the consensus estimate of $1.85 by ($0.07). The firm had revenue of $2.09 billion during the quarter, compared to analysts' expectations of $2.10 billion. First American Financial had a net margin of 9.05% and a return on equity of 13.43%. During the same period in the previous year, the firm posted $1.84 earnings per share. As a group, sell-side analysts forecast that First American Financial Corporation will post 6.95 earnings per share for the current year.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, October 5th. Stockholders of record on Monday, September 28th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend was Monday, September 28th. First American Financial's payout ratio is presently 34.37%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on FAF shares. Benchmark started coverage on shares of First American Financial in a report on Tuesday, July 21st. They set a "buy" rating and a $85.00 target price on the stock. Barclays cut their price target on First American Financial from $79.00 to $75.00 and set an "overweight" rating on the stock in a report on Friday. Keefe, Bruyette & Woods boosted their price objective on First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a research report on Friday, July 24th. Truist Financial cut their target price on shares of First American Financial from $80.00 to $78.00 and set a "buy" rating on the stock in a research note on Friday. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of First American Financial in a research report on Friday, October 16th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, First American Financial presently has an average rating of "Moderate Buy" and an average target price of $81.60.

More First American Financial News

Here are the key news stories impacting First American Financial this week:

• Positive Sentiment: Commercial title activity provided an important offset to residential-market headwinds in the third quarter. Management also highlighted adjusted earnings and revenue growth, suggesting that strength in commercial business and other segments is helping cushion the slower housing market. FAF Q3 deep dive: commercial strength offsets residential headwinds, focus shifts to tech rollout
• Positive Sentiment: First American plans to route a majority of its direct revenue through its Endpoint technology platform by the end of 2027. The rollout could improve efficiency and operating leverage over time, although benefits are expected to develop gradually in a “lower for longer” residential environment. First American outlines Endpoint revenue plan
• Neutral Sentiment: Truist Securities lowered its price target to $78 from $80 but maintained a Buy rating. The reduced target signals somewhat more cautious expectations, while the unchanged rating indicates the firm still sees meaningful upside. Truist adjusts First American price target
• Negative Sentiment: Third-quarter adjusted EPS was $1.78, below the $1.85 consensus estimate, while revenue of approximately $2.09 billion was slightly below expectations. Reported profit also declined from the prior-year period, ending a seven-quarter earnings-beat streak and weighing on investor sentiment. First American misses Q3 earnings and revenue estimates
• Negative Sentiment: Dowling & Partners cut its EPS forecasts for 2026, 2027 and 2028 to $6.94, $7.15 and $7.10, respectively, from $7.11, $7.35 and $7.55. The reductions reinforce concerns that subdued residential real-estate activity could limit First American’s earnings recovery. Analyst earnings estimate revisions

First American Financial Profile

First American Financial Corporation NYSE: FAF is a provider of title insurance, settlement services and financial technology solutions for the real estate and mortgage industries. Through its First American Title operations, the company helps protect property owners, lenders and other parties against title defects and related risks during real estate transactions.

The company's services include title searches and examination, title insurance policies, escrow and closing services, and transaction coordination.

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