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

Other hedge funds and other institutional investors also recently modified their holdings of the company. Adams Wealth Management grew its holdings in shares of First American Financial by 1.9% during the first quarter. Adams Wealth Management now owns 10,983 shares of the insurance provider's stock valued at $721,000 after buying an additional 207 shares during the last quarter. CacheTech Inc. lifted its holdings in First American Financial by 1.9% during the 1st quarter. CacheTech Inc. now owns 10,983 shares of the insurance provider's stock valued at $721,000 after buying an additional 207 shares in the last quarter. American Century Companies Inc. raised its holdings in shares of First American Financial by 0.5% in the 1st quarter. American Century Companies Inc. now owns 43,006 shares of the insurance provider's stock valued at $2,823,000 after purchasing an additional 229 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of First American Financial by 0.3% in the 4th quarter. The Manufacturers Life Insurance Company now owns 84,344 shares of the insurance provider's stock valued at $5,266,000 after purchasing an additional 230 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in shares of First American Financial by 23.9% in the 1st quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider's stock worth $87,000 after buying an additional 256 shares during the last quarter. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Price Performance

Shares of NYSE:FAF traded up $0.22 during trading on Wednesday, hitting $66.42. 309,745 shares of the company were exchanged, compared to its average volume of 884,746. The stock has a market capitalization of $6.76 billion, a P/E ratio of 36.71 and a beta of 1.24. First American Financial Corporation has a 12-month low of $53.09 and a 12-month high of $70.92. The firm's 50 day moving average price is $61.11 and its 200-day moving average price is $61.13.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 EPS for the quarter, beating the consensus estimate of $1.40 by $0.13. The firm had revenue of $1.84 billion during 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 in the prior year, the firm earned $1.27 EPS. As a group, equities research analysts anticipate that First American Financial Corporation will post 5.35 EPS for the current year.

First American Financial announced that its board has initiated a share repurchase plan on Wednesday, July 23rd that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 5.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several research firms have recently commented on FAF. Wall Street Zen raised shares of First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Barclays cut their price objective on shares of 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, 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 analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $75.00.

Insider Buying and Selling

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total transaction of $229,705.00. Following the sale, the director directly owned 28,095 shares of the company's stock, valued at $1,843,874.85. This trade represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 3.70% of the company's stock.

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.