Millennium Management LLC Has $209.55 Million Position in First American Financial Corporation $FAF

Key Points

• Millennium Management LLC reduced its stake in First American Financial Corporation by 26.2%, selling 1,134,531 shares, and now holds approximately 3.10% of the company worth around $209.5 million.
• First American Financial's stock price rose by 1.8% and the company reported earnings of $1.53 per share for the recent quarter, exceeding analysts' expectations.
• The Board of Directors has approved a stock buyback program worth $300 million, signaling confidence that the stock may be undervalued.

Millennium Management LLC reduced its holdings in shares of First American Financial Corporation (NYSE:FAF - Free Report) by 26.2% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,192,862 shares of the insurance provider's stock after selling 1,134,531 shares during the quarter. Millennium Management LLC owned approximately 3.10% of First American Financial worth $209,548,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Boston Partners increased its stake in shares of First American Financial by 23.0% during the 1st quarter. Boston Partners now owns 4,692,258 shares of the insurance provider's stock worth $307,181,000 after purchasing an additional 876,874 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in First American Financial by 4.7% during the first quarter. Dimensional Fund Advisors LP now owns 4,150,660 shares of the insurance provider's stock worth $272,406,000 after purchasing an additional 187,144 shares during the period. Vaughan Nelson Investment Management L.P. increased its position in First American Financial by 6.2% during the first quarter. Vaughan Nelson Investment Management L.P. now owns 1,626,142 shares of the insurance provider's stock worth $106,724,000 after buying an additional 95,165 shares during the last quarter. Reinhart Partners LLC. raised its stake in First American Financial by 15.5% in the first quarter. Reinhart Partners LLC. now owns 1,203,977 shares of the insurance provider's stock valued at $79,017,000 after buying an additional 161,819 shares during the period. Finally, Jacobs Levy Equity Management Inc. lifted its position in shares of First American Financial by 33.1% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,189,162 shares of the insurance provider's stock valued at $74,251,000 after buying an additional 295,946 shares during the last quarter. Institutional investors and hedge funds own 89.05% of the company's stock.

First American Financial Price Performance

FAF traded down $1.40 during trading on Tuesday, hitting $66.73. 777,512 shares of the stock traded hands, compared to its average volume of 875,905. The business has a 50 day moving average price of $62.23 and a 200 day moving average price of $61.28. 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 price-to-earnings ratio of 36.87 and a beta of 1.26.

First American Financial (NYSE:FAF - Get Free Report) last issued 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 return on equity of 10.41% and a net margin of 2.90%.The company had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. During the same quarter last year, the company posted $1.27 EPS. The company's revenue for the quarter was up 14.2% compared to the same quarter last year. On average, equities research analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial declared that its Board of Directors has approved a share buyback plan on Wednesday, July 23rd that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the insurance provider to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Margaret M. Mccarthy sold 3,500 shares of the firm's stock in a transaction that occurred 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 sale, the director directly owned 28,095 shares in the company, valued at approximately $1,843,874.85. This trade represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 3.70% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on FAF shares. Barclays decreased 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. 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. Finally, Keefe, Bruyette & Woods lifted their price target on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a research report on Monday, July 28th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, First American Financial currently has an average rating of "Moderate Buy" and an average price target of $75.00.

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.