Quantbot Technologies LP Takes $1.69 Million Position in First American Financial Corporation $FAF

Key Points

• Quantbot Technologies LP acquired 25,785 shares of First American Financial Corporation, valued at approximately $1.69 million, reflecting growing interest in the insurance sector by institutional investors.
• A share repurchase plan was approved by the board, allowing First American Financial to buy back up to $300 million in outstanding shares, indicating that the company may believe its stock is undervalued.
• First American Financial reported a quarterly profit of $1.53 earnings per share, surpassing expectations, alongside a revenue increase of 14.2% year-over-year.

Quantbot Technologies LP bought a new position in shares of First American Financial Corporation (NYSE:FAF - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 25,785 shares of the insurance provider's stock, valued at approximately $1,692,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Adams Wealth Management grew its position in First American Financial by 1.9% during the first quarter. Adams Wealth Management now owns 10,983 shares of the insurance provider's stock worth $721,000 after buying an additional 207 shares in the last quarter. CacheTech Inc. grew its position in First American Financial by 1.9% during the first quarter. CacheTech Inc. now owns 10,983 shares of the insurance provider's stock worth $721,000 after buying an additional 207 shares in the last quarter. American Century Companies Inc. grew its position in 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 buying an additional 229 shares in the last quarter. The Manufacturers Life Insurance Company grew its position in 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 buying an additional 230 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in 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 buying an additional 256 shares in the last quarter. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at First American Financial

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total transaction of $229,705.00. Following the completion of the sale, the director owned 28,095 shares of the company's stock, valued at $1,843,874.85. The trade was a 11.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.70% of the stock is currently owned by company insiders.

First American Financial Price Performance

FAF stock traded up $1.8260 during mid-day trading on Friday, hitting $66.4860. 584,107 shares of the stock were exchanged, compared to its average volume of 651,199. The business has a fifty day moving average price of $60.78 and a 200 day moving average price of $61.08. First American Financial Corporation has a 12 month low of $53.09 and a 12 month high of $70.92. The stock has a market capitalization of $6.77 billion, a price-to-earnings ratio of 36.73 and a beta of 1.24.

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, topping 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 firm had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the previous year, the company posted $1.27 earnings per share. The company's revenue was up 14.2% compared to the same quarter last year. As a group, equities analysts forecast that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial announced that its board has authorized a share repurchase plan on Wednesday, July 23rd that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the insurance provider to buy up to 5.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on FAF shares. Keefe, Bruyette & Woods boosted their target price on First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Barclays reduced their target price on First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a research report on Tuesday, July 8th. Finally, Wall Street Zen upgraded First American Financial from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, First American Financial has a consensus rating of "Moderate Buy" and an average price target 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.