Maridea Wealth Management LLC Makes New Investment in First American Financial Corporation (NYSE:FAF)

Key Points

• Maridea Wealth Management LLC recently acquired 6,892 shares of First American Financial Corporation, valued at approximately $452,000.
• First American Financial has received mixed ratings from analysts, with target prices ranging from $70.00 to $79.00, resulting in a consensus rating of "Moderate Buy."
• The company reported a quarterly earnings per share of $1.53, which exceeded estimates, and authorized a stock repurchase plan of $300 million as management suggests shares may be undervalued.

Maridea Wealth Management LLC acquired a new position in First American Financial Corporation (NYSE:FAF - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 6,892 shares of the insurance provider's stock, valued at approximately $452,000.

Other large investors also recently made changes to their positions in the company. Norges Bank bought a new position in First American Financial during the 4th quarter valued at $75,780,000. FMR LLC lifted its position in First American Financial by 20.8% in the 4th quarter. FMR LLC now owns 6,046,743 shares of the insurance provider's stock valued at $377,559,000 after purchasing an additional 1,042,145 shares during the last quarter. Lazard Asset Management LLC lifted its position in First American Financial by 500.7% in the 4th quarter. Lazard Asset Management LLC now owns 1,003,327 shares of the insurance provider's stock valued at $62,646,000 after purchasing an additional 836,314 shares during the last quarter. Capital International Investors bought a new stake in First American Financial in the 4th quarter valued at about $41,626,000. Finally, Ariel Investments LLC lifted its position in 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 purchasing an additional 359,777 shares during the last quarter. Institutional investors and hedge funds own 89.05% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on FAF. 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. Wall Street Zen downgraded shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. 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 report on Tuesday, July 8th. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat.com, First American Financial presently has a consensus rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Stock Up 0.8%

FAF stock traded up $0.47 during trading hours on Friday, hitting $60.52. The company's stock had a trading volume of 425,133 shares, compared to its average volume of 925,008. The company has a market capitalization of $6.16 billion, a PE ratio of 33.40 and a beta of 1.24. The stock has a 50 day moving average price of $58.36 and a two-hundred day moving average price of $60.95. First American Financial Corporation has a 12 month low of $53.09 and a 12 month high of $70.92.

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. The business had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.78 billion. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. First American Financial's revenue for the quarter was up 14.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.27 EPS. Sell-side analysts expect that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 16th. Investors of record on Monday, June 9th were paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 3.6%. The ex-dividend date was Monday, June 9th. First American Financial's dividend payout ratio is presently 119.34%.

First American Financial declared that its Board of Directors has initiated a share repurchase plan on Wednesday, July 23rd that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 5.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

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.