Victory Capital Management Inc. Reduces Stock Position in First American Financial Corporation $FAF

Key Points

• Victory Capital Management cut its stake in First American Financial by 58.9% in Q3, selling 953,979 shares and leaving it with 665,335 shares worth about $42.7 million (0.65% of the company).
• Director Parker S. Kennedy bought 44,841 shares on Feb. 17 at $67.85, increasing his holdings to 251,552 shares; corporate insiders now own about 3.70% of the stock.
• First American beat quarterly expectations with EPS $1.99 vs. $1.49 est. and revenue $2.0B vs. $1.8B, announced a $0.55 quarterly dividend (3.2% yield), and holds a consensus "Moderate Buy" with an average price target of $78.50.

Victory Capital Management Inc. cut its holdings in First American Financial Corporation (NYSE:FAF - Free Report) by 58.9% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 665,335 shares of the insurance provider's stock after selling 953,979 shares during the period. Victory Capital Management Inc. owned 0.65% of First American Financial worth $42,741,000 as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of FAF. Focus Partners Advisor Solutions LLC bought a new stake in First American Financial during the 3rd quarter valued at $205,000. Elo Mutual Pension Insurance Co purchased a new position in shares of First American Financial in the third quarter valued at $694,000. Aster Capital Management DIFC Ltd grew its position in shares of First American Financial by 864.5% in the third quarter. Aster Capital Management DIFC Ltd now owns 5,237 shares of the insurance provider's stock valued at $336,000 after purchasing an additional 4,694 shares in the last quarter. Choreo LLC bought a new stake in shares of First American Financial during the 3rd quarter valued at $226,000. Finally, US Bancorp DE raised its stake in shares of First American Financial by 656.0% during the 3rd quarter. US Bancorp DE now owns 32,666 shares of the insurance provider's stock valued at $2,098,000 after purchasing an additional 28,345 shares during the period. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Parker S. Kennedy bought 44,841 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was bought at an average cost of $67.85 per share, for a total transaction of $3,042,461.85. Following the completion of the transaction, the director owned 251,552 shares of the company's stock, valued at approximately $17,067,803.20. The trade was a 21.69% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 3.70% of the company's stock.

First American Financial Trading Down 1.9%

FAF stock opened at $67.71 on Friday. The company's 50 day moving average is $64.62 and its 200 day moving average is $64.09. The stock has a market cap of $6.90 billion, a price-to-earnings ratio of 11.27, a price-to-earnings-growth ratio of 0.70 and a beta of 1.25. First American Financial Corporation has a 1-year low of $53.09 and a 1-year high of $71.47.

First American Financial (NYSE:FAF - Get Free Report) last announced its earnings results on Wednesday, February 11th. The insurance provider reported $1.99 earnings per share for the quarter, beating analysts' consensus estimates of $1.49 by $0.50. First American Financial had a net margin of 8.34% and a return on equity of 11.92%. The business had revenue of $2 billion for the quarter, compared to the consensus estimate of $1.80 billion. During the same period last year, the firm posted $1.35 earnings per share. First American Financial's quarterly revenue was up 21.6% on a year-over-year basis. As a group, sell-side analysts forecast that First American Financial Corporation will post 5.35 EPS for the current fiscal year.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 9th will be given a dividend of $0.55 per share. The ex-dividend date is Monday, March 9th. This represents a $2.20 annualized dividend and a dividend yield of 3.2%. First American Financial's dividend payout ratio (DPR) is 36.61%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a report on Saturday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of First American Financial in a research note on Friday, February 13th. Keefe, Bruyette & Woods increased their target price on shares of First American Financial from $79.00 to $81.00 and gave the stock an "outperform" rating in a research note on Thursday, December 18th. Truist Financial boosted their price target on shares of First American Financial from $76.00 to $82.00 and gave the company a "buy" rating in a research report on Tuesday, February 17th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of First American Financial in a report on Friday, December 26th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $78.50.

About First American Financial

First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.

The company's title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.

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