T. Rowe Price Investment Management Inc. Sells 567,369 Shares of First American Financial Corporation $FAF

Key Points

• T. Rowe Price Investment Management Inc. reduced its stake in First American Financial by 39.9%, selling over 567,000 shares and retaining 854,828 shares valued at approximately $56 million.
• Other institutional investors have made notable changes, with Versant Capital Management increasing its position by 645.7% and UMB Bank n.a. by 132.1% in the same period.
• First American Financial's quarterly earnings beat expectations, reporting an EPS of $1.53 and announcing a $300 million stock repurchase program, indicating confidence in the stock's value.

T. Rowe Price Investment Management Inc. lowered its holdings in First American Financial Corporation (NYSE:FAF - Free Report) by 39.9% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 854,828 shares of the insurance provider's stock after selling 567,369 shares during the period. T. Rowe Price Investment Management Inc. owned approximately 0.83% of First American Financial worth $56,103,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in the company. Alpine Bank Wealth Management bought a new position in First American Financial during the 1st quarter valued at approximately $28,000. Richardson Capital Management LLC bought a new position in First American Financial during the first quarter valued at $39,000. Versant Capital Management Inc lifted its stake in shares of First American Financial by 645.7% during the 1st quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock worth $63,000 after acquiring an additional 833 shares during the last quarter. UMB Bank n.a. boosted its stake in shares of First American Financial by 132.1% during the first quarter. UMB Bank n.a. now owns 1,216 shares of the insurance provider's stock valued at $80,000 after purchasing an additional 692 shares during the period. Finally, GAMMA Investing LLC grew its stake in 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 acquiring an additional 256 shares in the last quarter. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Trading Down 2.1%

Shares of NYSE FAF traded down $1.38 on Thursday, reaching $65.21. 112,271 shares of the company traded hands, compared to its average volume of 883,180. The company has a 50 day moving average of $61.29 and a 200 day moving average of $61.17. First American Financial Corporation has a fifty-two week low of $53.09 and a fifty-two week high of $70.92. The stock has a market capitalization of $6.64 billion, a PE ratio of 36.03 and a beta of 1.24.

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

First American Financial declared that its Board of Directors has authorized a share buyback program on Wednesday, July 23rd that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the insurance provider to purchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at First American Financial

In other 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 value of $229,705.00. Following the transaction, the director directly owned 28,095 shares in the company, valued at approximately $1,843,874.85. The trade was a 11.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 3.70% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Keefe, Bruyette & Woods increased their target price 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. Finally, Barclays dropped their price objective on First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 8th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, First American Financial has a consensus rating of "Moderate Buy" and a consensus price target of $75.00.

About First American Financial

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.