Royal Bank of Canada Raises Stock Position in First American Financial Corporation $FAF

Key Points

• Royal Bank of Canada increased its First American Financial stake by 66.3% in the first quarter to 88,582 shares valued at approximately $5.34 million. Institutional investors collectively own 89.05% of FAF.
• First American Financial reported quarterly earnings of $2.08 per share, exceeding the $1.80 consensus estimate, while revenue rose 15% year over year to $2.11 billion.
• Analysts maintain a generally positive outlook, with seven Buy ratings and one Hold rating, an average “Moderate Buy” recommendation, and a consensus price target of $84.60 versus the stock’s recent $72.36 price.

Royal Bank of Canada raised its holdings in shares of First American Financial Corporation (NYSE:FAF - Free Report) by 66.3% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 88,582 shares of the insurance provider's stock after acquiring an additional 35,315 shares during the quarter. Royal Bank of Canada owned approximately 0.09% of First American Financial worth $5,340,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in FAF. Jones Financial Companies Lllp grew its position in shares of First American Financial by 121.3% during the first quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider's stock worth $97,000 after purchasing an additional 813 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in First American Financial by 10.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider's stock worth $19,233,000 after purchasing an additional 28,666 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in First American Financial by 7.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider's stock worth $27,180,000 after purchasing an additional 27,600 shares during the period. Jane Street Group LLC boosted its stake in First American Financial by 182.5% in the 1st quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider's stock worth $4,435,000 after purchasing an additional 43,651 shares during the period. Finally, Focus Partners Wealth grew its holdings in First American Financial by 11.3% during the 1st quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider's stock valued at $281,000 after buying an additional 435 shares in the last quarter. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

First American Financial Price Performance

Shares of FAF opened at $72.36 on Thursday. The stock has a market capitalization of $7.39 billion, a price-to-earnings ratio of 10.02, a price-to-earnings-growth ratio of 0.67 and a beta of 1.22. First American Financial Corporation has a 1 year low of $56.20 and a 1 year high of $79.87. The business's 50 day simple moving average is $70.48 and its 200-day simple moving average is $67.26.

First American Financial (NYSE:FAF - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, beating analysts' consensus estimates of $1.80 by $0.28. The firm had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.03 billion. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. First American Financial's revenue for the quarter was up 15.0% compared to the same quarter last year. During the same period last year, the firm posted $1.53 earnings per share. On average, sell-side analysts expect that First American Financial Corporation will post 7.02 earnings per share for the current year.

Insider Activity at First American Financial

In other First American Financial news, CAO Steven A. Adams sold 3,253 shares of First American Financial stock in a transaction on Friday, July 24th. The shares were sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the transaction, the chief accounting officer directly owned 10,234 shares of the company's stock, valued at $767,447.66. This trade represents a 24.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 3.50% of the stock is owned by insiders.

Analyst Ratings Changes

FAF has been the topic of several recent analyst reports. Wall Street Zen cut shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Benchmark began coverage on shares of First American Financial in a research note on Tuesday, July 21st. They set a "buy" rating and a $85.00 target price for the company. Stephens reiterated an "overweight" rating and issued a $84.00 price target on shares of First American Financial in a report on Friday, June 12th. Truist Financial boosted their price target on shares of First American Financial from $82.00 to $85.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Finally, Barclays increased their price objective on shares of First American Financial from $80.00 to $83.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. Seven 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 presently has an average rating of "Moderate Buy" and a consensus target price of $84.60.

First American Financial Company Profile

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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