Universal Beteiligungs und Servicegesellschaft mbH Purchases New Stake in First American Financial Corporation (NYSE:FAF)

Key Points

• Universal Beteiligungs und Servicegesellschaft mbH has acquired a new position in First American Financial Corporation, purchasing 14,750 shares valued at approximately $968,000 in Q1.
• First American Financial's quarterly earnings surpassed expectations, reporting $1.53 per share, which is higher than the consensus estimate of $1.40, along with a 14.2% year-on-year revenue increase.
• The company announced a stock repurchase plan allowing for the buyback of $300 million worth of shares, representing about 5.1% of its outstanding shares, indicating a belief in undervaluation.

Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of First American Financial Corporation (NYSE:FAF - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 14,750 shares of the insurance provider's stock, valued at approximately $968,000.

A number of other large investors also recently modified their holdings of the business. Y Intercept Hong Kong Ltd acquired a new position in shares of First American Financial in the first quarter valued at $1,447,000. Allianz Asset Management GmbH raised its stake in shares of First American Financial by 49.8% in the first quarter. Allianz Asset Management GmbH now owns 138,510 shares of the insurance provider's stock valued at $9,090,000 after purchasing an additional 46,066 shares in the last quarter. South Dakota Investment Council raised its stake in shares of First American Financial by 4.4% in the first quarter. South Dakota Investment Council now owns 77,767 shares of the insurance provider's stock valued at $5,104,000 after purchasing an additional 3,300 shares in the last quarter. Impact Partnership Wealth LLC acquired a new position in shares of First American Financial in the first quarter valued at $216,000. Finally, CWM LLC raised its stake in shares of First American Financial by 69.2% in the first quarter. CWM LLC now owns 25,625 shares of the insurance provider's stock valued at $1,682,000 after purchasing an additional 10,482 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

First American Financial Price Performance

Shares of FAF traded up $0.55 during trading hours on Friday, hitting $60.60. The stock had a trading volume of 870,170 shares, compared to its average volume of 1,666,445. The company's fifty day moving average is $58.46 and its two-hundred day moving average is $60.95. First American Financial Corporation has a 52 week low of $53.09 and a 52 week high of $70.92. The stock has a market capitalization of $6.17 billion, a price-to-earnings ratio of 33.48 and a beta of 1.24.

First American Financial (NYSE:FAF - Get Free Report) last posted its 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 net margin of 2.90% and a return on equity of 10.41%. The business had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the prior year, the firm earned $1.27 EPS. The firm's quarterly revenue was up 14.2% compared to the same quarter last year. Equities analysts predict that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 9th were issued a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 3.6%. The ex-dividend date was Monday, June 9th. First American Financial's dividend payout ratio is presently 119.34%.

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

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Barclays cut their target price 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. Wall Street Zen lowered First American Financial from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. Finally, Keefe, Bruyette & Woods upped their target price on First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. Two analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, First American Financial has an average 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.