Boston Partners Raises Stake in First American Financial Corporation (NYSE:FAF)

Key Points

• Boston Partners has increased its holdings in First American Financial Corporation by 23.0%, owning 4,692,258 shares valued at approximately $307 million.
• Analysts have adjusted their price targets for First American Financial, with Keefe, Bruyette & Woods raising it to **$79**, while Barclays lowered it to **$70**; the current consensus price target is $75.
• First American Financial reported a strong quarterly performance with earnings per share of $1.53, exceeding expectations, and announced a $300 million share repurchase program.

Boston Partners increased its holdings in First American Financial Corporation (NYSE:FAF - Free Report) by 23.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 4,692,258 shares of the insurance provider's stock after buying an additional 876,874 shares during the quarter. Boston Partners owned 4.56% of First American Financial worth $307,181,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Lazard Asset Management LLC lifted its holdings in First American Financial by 500.7% during the fourth quarter. Lazard Asset Management LLC now owns 1,003,327 shares of the insurance provider's stock valued at $62,646,000 after purchasing an additional 836,314 shares in the last quarter. Capital International Investors purchased a new position in First American Financial during the fourth quarter valued at approximately $41,626,000. Ariel Investments LLC lifted its holdings in First American Financial by 9.9% during the fourth quarter. Ariel Investments LLC now owns 3,993,155 shares of the insurance provider's stock valued at $249,333,000 after purchasing an additional 359,777 shares in the last quarter. Nuveen LLC purchased a new position in First American Financial during the first quarter valued at approximately $20,636,000. Finally, Balyasny Asset Management L.P. purchased a new position in First American Financial during the fourth quarter valued at approximately $19,377,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Trading Down 2.2%

FAF traded down $1.42 during trading hours on Friday, hitting $64.43. The company's stock had a trading volume of 829,462 shares, compared to its average volume of 864,702. The business's 50-day moving average price is $60.10 and its 200-day moving average price is $61.05. First American Financial Corporation has a 12 month low of $53.09 and a 12 month high of $70.92. The stock has a market cap of $6.56 billion, a price-to-earnings ratio of 35.60 and a beta of 1.24.

First American Financial (NYSE:FAF - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, topping 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 company had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the previous year, the business posted $1.27 earnings per share. First American Financial's quarterly revenue was up 14.2% on a year-over-year basis. On average, analysts forecast that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial declared that its board has authorized a share buyback plan on Wednesday, July 23rd that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the insurance provider to buy up to 5.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the business'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 sale, the director owned 28,095 shares in the company, valued at approximately $1,843,874.85. The trade was a 11.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 3.70% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on FAF. Keefe, Bruyette & Woods lifted their price target on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. 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, 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. One investment analyst has rated the stock with a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average 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.