Northwestern Mutual Wealth Management Co. Buys 5,786,134 Shares of First American Financial Corporation $FAF

Key Points

• Northwestern Mutual Wealth Management dramatically increased its stake in First American Financial, buying 5,786,134 shares and ending the quarter with about 5.68% of the company, valued at roughly $355.5 million.
• First American Financial posted solid quarterly results, with earnings of $1.33 per share beating estimates and revenue of $1.85 billion topping expectations; revenue rose 16.2% year over year.
• The company also raised shareholder returns by announcing a quarterly dividend of $0.55 per share, equal to a $2.20 annualized payout and a 3.3% yield.

Northwestern Mutual Wealth Management Co. boosted its stake in First American Financial Corporation (NYSE:FAF - Free Report) by 4,485,375.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 5,786,263 shares of the insurance provider's stock after purchasing an additional 5,786,134 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 5.68% of First American Financial worth $355,508,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in FAF. Bar Harbor Wealth Management grew its position in shares of First American Financial by 52.4% during the 4th quarter. Bar Harbor Wealth Management now owns 135,649 shares of the insurance provider's stock valued at $8,334,000 after acquiring an additional 46,639 shares during the period. Allianz Asset Management GmbH grew its position in shares of First American Financial by 10.6% during the 3rd quarter. Allianz Asset Management GmbH now owns 210,739 shares of the insurance provider's stock valued at $13,538,000 after acquiring an additional 20,188 shares during the period. Channing Capital Management LLC grew its position in shares of First American Financial by 16.9% during the 3rd quarter. Channing Capital Management LLC now owns 1,547,790 shares of the insurance provider's stock valued at $99,430,000 after acquiring an additional 224,277 shares during the period. Dimensional Fund Advisors LP grew its position in shares of First American Financial by 4.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,293,573 shares of the insurance provider's stock valued at $275,816,000 after acquiring an additional 168,706 shares during the period. Finally, US Bancorp DE grew its position in shares of First American Financial by 656.0% during the 3rd quarter. US Bancorp DE now owns 32,666 shares of the insurance provider's stock valued at $2,098,000 after acquiring an additional 28,345 shares during the period. Institutional investors own 89.05% of the company's stock.

Insider Activity

In related news, Director Margaret M. Mccarthy sold 6,630 shares of the company's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $70.59, for a total transaction of $468,011.70. Following the transaction, the director directly owned 24,024 shares in the company, valued at approximately $1,695,854.16. This represents a 21.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Parker S. Kennedy purchased 44,841 shares of the stock in a transaction dated Tuesday, February 17th. The stock was acquired at an average cost of $67.85 per share, with a total value of $3,042,461.85. Following the transaction, the director directly owned 251,552 shares in the company, valued at approximately $17,067,803.20. This trade represents a 21.69% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 3.50% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently issued reports on FAF. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of First American Financial in a research report on Friday, February 13th. Zacks Research raised shares of First American Financial from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 27th. Wall Street Zen downgraded shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Barclays lifted their target price on shares of First American Financial from $72.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Finally, Truist Financial lifted their target price on shares of First American Financial from $82.00 to $85.00 and gave the company a "buy" rating in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $82.50.

First American Financial Trading Up 0.0%

Shares of NYSE FAF opened at $67.04 on Friday. The firm's 50-day moving average price is $64.57 and its 200-day moving average price is $64.16. The stock has a market capitalization of $6.83 billion, a price-to-earnings ratio of 10.30, a P/E/G ratio of 0.64 and a beta of 1.28. First American Financial Corporation has a 12-month low of $53.09 and a 12-month high of $71.47.

First American Financial (NYSE:FAF - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.27. The firm had revenue of $1.85 billion for the quarter, compared to analysts' expectations of $1.80 billion. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. The business's revenue was up 16.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.84 EPS. On average, equities analysts predict that First American Financial Corporation will post 6.83 EPS for the current fiscal year.

First American Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Monday, June 8th. First American Financial's dividend payout ratio is currently 33.79%.

About First American Financial

First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.

The company's title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.

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