First American Financial Corporation $FAF Shares Sold by Jacobs Levy Equity Management Inc.

Key Points

• Jacobs Levy Equity Management Inc. reduced its stake in First American Financial Corporation by 34.6%, selling 411,839 shares to hold a total of 777,323 shares, valued at approximately $51 million.
• First American Financial reported strong earnings for the last quarter, with a net margin of 2.90% and a revenue increase of 14.2% year-over-year, outperforming analysts’ estimates.
• The company has initiated a $300 million stock repurchase program as part of its strategy, indicating management believes its stock is undervalued.

Jacobs Levy Equity Management Inc. reduced its holdings in shares of First American Financial Corporation (NYSE:FAF - Free Report) by 34.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 777,323 shares of the insurance provider's stock after selling 411,839 shares during the period. Jacobs Levy Equity Management Inc. owned about 0.76% of First American Financial worth $51,016,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in FAF. Captrust Financial Advisors increased its stake in First American Financial by 6.4% during the 4th quarter. Captrust Financial Advisors now owns 7,372 shares of the insurance provider's stock worth $460,000 after buying an additional 442 shares during the period. Brevan Howard Capital Management LP increased its stake in First American Financial by 53.6% during the 4th quarter. Brevan Howard Capital Management LP now owns 9,827 shares of the insurance provider's stock worth $614,000 after buying an additional 3,431 shares during the period. FJ Capital Management LLC acquired a new position in First American Financial during the 4th quarter worth approximately $3,995,000. Focus Partners Wealth acquired a new position in First American Financial during the 4th quarter worth approximately $240,000. Finally, Jefferies Financial Group Inc. acquired a new position in First American Financial during the 4th quarter worth approximately $385,000. 89.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have commented on FAF shares. Keefe, Bruyette & Woods boosted their price target on shares of First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Wall Street Zen upgraded shares of 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 shares of First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a report on Tuesday, July 8th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, First American Financial currently has an average rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Price Performance

Shares of First American Financial stock traded down $1.40 during trading hours on Tuesday, hitting $66.73. The company had a trading volume of 777,512 shares, compared to its average volume of 875,905. The company's 50-day moving average is $62.31 and its two-hundred day moving average is $61.32. First American Financial Corporation has a twelve month low of $53.09 and a twelve month high of $70.92. The company has a market cap of $6.79 billion, a P/E ratio of 36.87 and a beta of 1.26.

First American Financial (NYSE:FAF - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, beating 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 business had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the prior year, the business posted $1.27 EPS. The company's revenue for the quarter was up 14.2% on a year-over-year basis. Sell-side 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 authorized a share 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 stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, Director Margaret M. Mccarthy sold 3,500 shares of the company'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 in the company, valued at approximately $1,843,874.85. This represents a 11.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 3.70% of the company's stock.

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.