Fox Run Management L.L.C. Makes New $1.81 Million Investment in First American Financial Corporation $FAF

Key Points

• Fox Run Management L.L.C. has acquired a new stake in First American Financial Corporation, purchasing 27,582 shares valued at approximately $1.81 million.
• First American Financial reported earnings per share of $1.53 for the last quarter, exceeding analyst estimates and marking a 14.2% increase in year-over-year revenue.
• The company has initiated a share buyback program authorizing the purchase of up to $300 million in outstanding shares, indicating management's belief that the stock is undervalued.

Fox Run Management L.L.C. acquired a new position in shares of First American Financial Corporation (NYSE:FAF - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 27,582 shares of the insurance provider's stock, valued at approximately $1,810,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Boston Partners boosted its position in shares of 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 during the last quarter. Ariel Investments LLC increased its stake in shares of 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 valued at $249,333,000 after acquiring an additional 359,777 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in First American Financial by 3.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,963,516 shares of the insurance provider's stock worth $247,481,000 after buying an additional 129,863 shares during the period. Vaughan Nelson Investment Management L.P. raised its stake in First American Financial by 6.2% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 1,626,142 shares of the insurance provider's stock worth $106,724,000 after buying an additional 95,165 shares during the period. Finally, Reinhart Partners LLC. raised its stake in First American Financial by 15.5% during the 1st quarter. Reinhart Partners LLC. now owns 1,203,977 shares of the insurance provider's stock worth $79,017,000 after buying an additional 161,819 shares during the period. 89.05% of the stock is currently owned by institutional investors.

First American Financial Trading Up 1.0%

Shares of NYSE FAF traded up $0.65 during mid-day trading on Tuesday, hitting $64.58. The company had a trading volume of 82,727 shares, compared to its average volume of 901,121. First American Financial Corporation has a one year low of $53.09 and a one year high of $70.92. The company has a market capitalization of $6.57 billion, a PE ratio of 35.69 and a beta of 1.24. The firm has a 50-day simple moving average of $60.26 and a two-hundred day simple moving average of $61.03.

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

First American Financial announced that its Board of Directors has initiated a stock buyback program on Wednesday, July 23rd that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the insurance provider to repurchase up to 5.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages recently commented on FAF. Keefe, Bruyette & Woods raised their price objective on First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Barclays dropped their price objective on First American Financial from $72.00 to $70.00 and set an "equal weight" rating on the stock in a research note on Tuesday, July 8th. Finally, Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, First American Financial has a consensus rating of "Moderate Buy" and an average target price of $75.00.

Insider Buying and Selling

In related news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction dated 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 owned 28,095 shares in the company, 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 document filed with the SEC, which is accessible through this hyperlink. Insiders own 3.70% of the company's stock.

First American Financial Company 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.