First American Financial Corporation $FAF Stake Raised by Invesco Ltd.

Key Points

• Invesco Ltd. has increased its holdings in First American Financial Corporation by 40.9%, acquiring an additional 124,975 shares, bringing its total ownership to approximately 430,908 shares valued at $28.28 million.
• First American Financial's quarterly earnings report revealed earnings per share of $1.53, exceeding analysts' expectations, with a revenue of $1.84 billion, representing a 14.2% year-over-year increase.
• The company has announced a share buyback plan permitting up to $300 million in repurchases, indicating management's confidence in the stock’s valuation.

Invesco Ltd. raised its stake in First American Financial Corporation (NYSE:FAF - Free Report) by 40.9% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 430,908 shares of the insurance provider's stock after buying an additional 124,975 shares during the quarter. Invesco Ltd. owned approximately 0.42% of First American Financial worth $28,280,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in FAF. The Manufacturers Life Insurance Company increased its holdings in shares of First American Financial by 0.3% during the fourth quarter. The Manufacturers Life Insurance Company now owns 84,344 shares of the insurance provider's stock valued at $5,266,000 after purchasing an additional 230 shares during the period. GAMMA Investing LLC increased its holdings in shares of First American Financial by 23.9% during the first quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider's stock valued at $87,000 after purchasing an additional 256 shares during the period. Goldstone Financial Group LLC increased its holdings in shares of First American Financial by 9.0% during the first quarter. Goldstone Financial Group LLC now owns 3,557 shares of the insurance provider's stock valued at $233,000 after purchasing an additional 293 shares during the period. State of Michigan Retirement System increased its holdings in shares of First American Financial by 1.2% during the first quarter. State of Michigan Retirement System now owns 24,664 shares of the insurance provider's stock valued at $1,619,000 after purchasing an additional 300 shares during the period. Finally, Louisiana State Employees Retirement System increased its holdings in shares of First American Financial by 1.0% during the first quarter. Louisiana State Employees Retirement System now owns 28,900 shares of the insurance provider's stock valued at $1,897,000 after purchasing an additional 300 shares during the period. 89.05% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on FAF shares. Keefe, Bruyette & Woods raised their price target on First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, Barclays lowered their price target on First American Financial from $72.00 to $70.00 and set an "equal weight" rating on the stock in a report on Tuesday, July 8th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Stock Performance

Shares of NYSE:FAF traded up $1.8260 during midday trading on Friday, reaching $66.4860. The company had a trading volume of 584,107 shares, compared to its average volume of 676,615. First American Financial Corporation has a 1-year low of $53.09 and a 1-year high of $70.92. The firm has a market cap of $6.77 billion, a price-to-earnings ratio of 36.73 and a beta of 1.24. The company has a fifty day simple moving average of $60.78 and a two-hundred day simple moving average of $61.10.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating 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 analyst estimates of $1.78 billion. During the same quarter last year, the company posted $1.27 EPS. First American Financial's revenue for the quarter was up 14.2% on a year-over-year basis. Analysts expect that First American Financial Corporation will post 5.35 EPS for the current year.

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

Insider Transactions at First American Financial

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total value of $229,705.00. Following the completion of the sale, the director directly owned 28,095 shares of the company's stock, valued at approximately $1,843,874.85. This represents a 11.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate 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.