Magnetar Financial LLC Purchases New Shares in First American Financial Corporation $FAF

Key Points

• Magnetar Financial LLC has acquired a new stake in First American Financial Corporation, purchasing 112,671 shares valued at approximately $7.4 million, representing about 0.11% ownership.
• First American Financial has reported a quarterly earnings per share (EPS) of $1.53, exceeding estimates, and plans to initiate a $300 million share buyback program, indicating management believes the stock is undervalued.
• Analysts have a consensus rating of "Moderate Buy" for First American Financial, with target prices ranging from $70.00 to $79.00, reflecting mixed outlooks from different research firms.

Magnetar Financial LLC purchased a new position in First American Financial Corporation (NYSE:FAF - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 112,671 shares of the insurance provider's stock, valued at approximately $7,395,000. Magnetar Financial LLC owned about 0.11% of First American Financial at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of FAF. Adams Wealth Management lifted its stake in shares of First American Financial by 1.9% in the first quarter. Adams Wealth Management now owns 10,983 shares of the insurance provider's stock valued at $721,000 after buying an additional 207 shares during the period. CacheTech Inc. grew its holdings in First American Financial by 1.9% during the 1st quarter. CacheTech Inc. now owns 10,983 shares of the insurance provider's stock worth $721,000 after acquiring an additional 207 shares during the period. American Century Companies Inc. boosted its position in shares of First American Financial by 0.5% during the first quarter. American Century Companies Inc. now owns 43,006 shares of the insurance provider's stock worth $2,823,000 after purchasing an additional 229 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position 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 worth $5,266,000 after purchasing an additional 230 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position 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 worth $87,000 after purchasing an additional 256 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors.

First American Financial Stock Performance

Shares of First American Financial stock traded down $1.61 on Tuesday, reaching $64.39. 841,455 shares of the stock were exchanged, compared to its average volume of 880,776. The firm has a market cap of $6.55 billion, a PE ratio of 35.57 and a beta of 1.26. The firm's 50 day moving average is $61.70 and its 200-day moving average is $61.20. First American Financial Corporation has a one year low of $53.09 and a one year high of $70.92.

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 (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 firm had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.78 billion. During the same period in the prior year, the company posted $1.27 EPS. The company's revenue was up 14.2% on a year-over-year basis. On average, equities research analysts expect that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

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

Analyst Ratings Changes

Several equities 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 research report on Monday, July 28th. Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Finally, Barclays lowered 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 note on Tuesday, July 8th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $75.00.

Insiders Place Their Bets

In related news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction on Wednesday, August 13th. The shares were 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 of the company's stock, valued at $1,843,874.85. This trade represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 3.70% of the stock is owned by corporate insiders.

First American Financial 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.