MAI Capital Management Has $445,000 Stock Holdings in First American Financial Corporation $FAF

Key Points

• MAI Capital Management significantly increased its stake in First American Financial Corporation by 944.4%, now owning shares worth $445,000 as per the latest SEC filing.
• First American Financial has received varied analyst ratings, with one brokerage upgrading its rating to "buy" and another lowering its target price to $70.00.
• The company announced a $300 million share repurchase program, indicating management's belief that the stock is currently undervalued.

MAI Capital Management grew its holdings in shares of First American Financial Corporation (NYSE:FAF - Free Report) by 944.4% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 6,778 shares of the insurance provider's stock after acquiring an additional 6,129 shares during the period. MAI Capital Management's holdings in First American Financial were worth $445,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the business. Magnetar Financial LLC acquired a new stake in First American Financial in the first quarter valued at $7,395,000. Carlson Capital L.P. bought a new stake in shares of First American Financial in the 1st quarter valued at about $630,000. Ieq Capital LLC increased its stake in shares of First American Financial by 91.1% in the first quarter. Ieq Capital LLC now owns 52,637 shares of the insurance provider's stock valued at $3,455,000 after buying an additional 25,093 shares during the period. Gabelli Funds LLC increased its stake in shares of First American Financial by 11.7% in the first quarter. Gabelli Funds LLC now owns 40,721 shares of the insurance provider's stock valued at $2,673,000 after buying an additional 4,250 shares during the period. Finally, Ceredex Value Advisors LLC raised its position in shares of First American Financial by 11.3% during the first quarter. Ceredex Value Advisors LLC now owns 212,243 shares of the insurance provider's stock worth $13,930,000 after acquiring an additional 21,550 shares during the last quarter. Institutional investors and hedge funds own 89.05% of the company's stock.

First American Financial Price Performance

Shares of NYSE:FAF traded down $0.62 during mid-day trading on Wednesday, hitting $66.14. The company had a trading volume of 863,068 shares, compared to its average volume of 546,443. First American Financial Corporation has a one year low of $53.09 and a one year high of $70.92. The firm has a fifty day moving average price of $62.38 and a 200 day moving average price of $61.35. The company has a market capitalization of $6.73 billion, a PE ratio of 36.54 and a beta of 1.27.

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 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 period last year, the company posted $1.27 earnings per share. The business's quarterly revenue was up 14.2% on a year-over-year basis. Research 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 has approved a stock buyback plan on Wednesday, July 23rd that permits the company to buyback $300.00 million in 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 an indication that the company's leadership believes its stock is undervalued.

First American Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 22nd will be given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 3.3%. This is a positive change from First American Financial's previous quarterly dividend of $0.54. First American Financial's payout ratio is presently 119.34%.

Insiders Place Their Bets

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total transaction of $229,705.00. Following the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 3.70% of the company's stock.

Analysts Set New Price Targets

FAF has been the topic of several analyst reports. Barclays reduced their target price 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. Keefe, Bruyette & Woods upped their price objective on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. 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. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $75.00.

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.