Universal Beteiligungs und Servicegesellschaft mbH Takes Position 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 First American Financial Corporation (NYSE:FAF - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 14,750 shares of the insurance provider's stock, valued at approximately $968,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in FAF. Y Intercept Hong Kong Ltd bought a new stake in First American Financial in the 1st quarter valued at about $1,447,000. Allianz Asset Management GmbH increased its position 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 worth $9,090,000 after purchasing an additional 46,066 shares during the last quarter. South Dakota Investment Council boosted its stake in 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 worth $5,104,000 after buying an additional 3,300 shares in the last quarter. Impact Partnership Wealth LLC purchased a new stake in First American Financial in the first quarter worth approximately $216,000. Finally, CWM LLC boosted its stake in First American Financial by 69.2% in the first quarter. CWM LLC now owns 25,625 shares of the insurance provider's stock worth $1,682,000 after buying an additional 10,482 shares in the last quarter. 89.05% of the stock is owned by hedge funds and other institutional investors.

First American Financial Trading Down 0.0%

First American Financial stock traded down $0.02 on Wednesday, hitting $62.60. 262,691 shares of the stock traded hands, compared to its average volume of 919,607. The firm has a market cap of $6.37 billion, a P/E ratio of 34.58 and a beta of 1.24. The business's fifty day simple moving average is $58.74 and its 200 day simple moving average is $60.96. First American Financial Corporation has a 1 year low of $53.09 and a 1 year high of $70.92.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly 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. First American Financial had a return on equity of 10.41% and a net margin of 2.90%. The firm had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.78 billion. During the same period last year, the company earned $1.27 earnings per share. The company's revenue was up 14.2% on a year-over-year basis. As a group, analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current year.

First American Financial declared that its board has approved a share buyback 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 repurchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

First American Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 9th were given a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend was Monday, June 9th. First American Financial's payout ratio is presently 119.34%.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Wall Street Zen lowered First American Financial from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. 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. Finally, Keefe, Bruyette & Woods increased their price objective 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. According to MarketBeat.com, First American Financial presently has a consensus rating of "Moderate Buy" and an average target price 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.