Sciencast Management LP Makes New $1.06 Million Investment in First American Financial Corporation $FAF

Key Points

• Sciencast Management LP invested approximately $1.06 million in First American Financial Corporation by acquiring 16,131 shares in the first quarter.
• First American Financial's share repurchase plan authorizes the buyback of $300 million worth of stock, equivalent to 5.1% of its shares, signaling confidence in the company's valuation.
• Analysts maintain a consensus rating of "Moderate Buy" for the stock, with a target price of $75.00 following recent rating upgrades from various firms.

Sciencast Management LP bought a new position in First American Financial Corporation (NYSE:FAF - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 16,131 shares of the insurance provider's stock, valued at approximately $1,059,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Principal Financial Group Inc. increased its position in shares of First American Financial by 0.3% during the 1st quarter. Principal Financial Group Inc. now owns 236,876 shares of the insurance provider's stock valued at $15,546,000 after purchasing an additional 794 shares during the last quarter. GAMMA Investing LLC increased its position in shares of First American Financial by 23.9% during the 1st quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider's stock valued at $87,000 after purchasing an additional 256 shares during the last quarter. Cetera Investment Advisers increased its position in shares of First American Financial by 137.8% during the 1st quarter. Cetera Investment Advisers now owns 21,091 shares of the insurance provider's stock valued at $1,384,000 after purchasing an additional 12,222 shares during the last quarter. Envestnet Asset Management Inc. increased its position in shares of First American Financial by 2.8% during the 1st quarter. Envestnet Asset Management Inc. now owns 132,150 shares of the insurance provider's stock valued at $8,673,000 after purchasing an additional 3,557 shares during the last quarter. Finally, Bar Harbor Wealth Management increased its position in shares of First American Financial by 30.5% during the 1st quarter. Bar Harbor Wealth Management now owns 126,093 shares of the insurance provider's stock valued at $8,275,000 after purchasing an additional 29,466 shares during the last quarter. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Trading Down 0.7%

First American Financial stock traded down $0.46 during midday trading on Friday, hitting $67.57. The stock had a trading volume of 405,260 shares, compared to its average volume of 571,717. First American Financial Corporation has a 52-week low of $53.09 and a 52-week high of $70.92. The company has a market capitalization of $6.88 billion, a PE ratio of 37.33 and a beta of 1.26. The firm's fifty day moving average is $62.56 and its two-hundred day moving average is $61.35.

First American Financial (NYSE:FAF - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share 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 business had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.78 billion. During the same period in the prior year, the company posted $1.27 EPS. The firm's revenue for the quarter was up 14.2% compared to the same quarter last year. As a group, equities research analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current fiscal year.

First American Financial announced that its board has authorized a share repurchase program on Wednesday, July 23rd that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 5.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

First American Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 22nd will be given a $0.55 dividend. This is a boost from First American Financial's previous quarterly dividend of $0.54. This represents a $2.20 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Monday, September 22nd. First American Financial's dividend payout ratio is 119.34%.

Insider Transactions at First American Financial

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total value of $229,705.00. Following the completion of the sale, the director directly owned 28,095 shares in the company, valued at $1,843,874.85. This trade represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.70% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

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