Teza Capital Management LLC Purchases New Stake in First American Financial Corporation $FAF

Key Points

• Teza Capital Management LLC has acquired a new position in First American Financial Corporation, purchasing 6,306 shares valued at approximately $414,000.
• First American Financial reported quarterly earnings of $1.53 EPS, exceeding estimates and showing a revenue increase of 14.2% year-over-year.
• The company has announced a stock buyback program, authorizing $300 million to repurchase up to 5.1% of its outstanding shares, signaling confidence in its valuation.

Teza Capital Management LLC acquired a new stake in First American Financial Corporation (NYSE:FAF - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 6,306 shares of the insurance provider's stock, valued at approximately $414,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Alpine Bank Wealth Management acquired a new stake in shares of First American Financial in the first quarter valued at about $28,000. Richardson Capital Management LLC acquired a new stake in shares of First American Financial in the first quarter valued at about $39,000. Versant Capital Management Inc raised its position in First American Financial by 645.7% during the first 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. raised its position in 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 worth $80,000 after acquiring an additional 692 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in shares of 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. Institutional investors and hedge funds own 89.05% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on FAF shares. Barclays lowered 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 report on Tuesday, July 8th. Keefe, Bruyette & Woods boosted their target price on shares of First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Finally, Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $75.00.

First American Financial Stock Performance

Shares of FAF stock traded down $0.46 on Friday, hitting $67.57. The stock had a trading volume of 405,260 shares, compared to its average volume of 592,927. The firm has a market capitalization of $6.88 billion, a price-to-earnings ratio of 37.33 and a beta of 1.27. The stock's 50 day moving average is $62.56 and its 200-day moving average is $61.37. First American Financial Corporation has a 52-week low of $53.09 and a 52-week high of $70.92.

First American Financial (NYSE:FAF - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.40 by $0.13. The business 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%. The business's quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.27 earnings per share. Equities analysts expect that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Stockholders of record on Monday, September 22nd will be paid a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. This is a boost from First American Financial's previous quarterly dividend of $0.54. The ex-dividend date is Monday, September 22nd. First American Financial's payout ratio is currently 121.55%.

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

Insider Transactions at First American Financial

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the company's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total value 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 represents a 11.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 3.70% of the stock is owned by corporate insiders.

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.