Wealth Enhancement Advisory Services LLC Sells 12,557 Shares of First American Financial Corporation $FAF

Key Points

• Wealth Enhancement Advisory Services LLC significantly reduced their stake in First American Financial Corporation, selling 12,557 shares to own a total of 12,415 shares worth approximately $785,000.
• First American Financial declared a quarterly dividend of $0.55 per share, reflecting an increase from the previous dividend of $0.54, with an annual yield of 3.4%.
• Analysts have mixed ratings on First American Financial, with a consensus rating of "Moderate Buy" and an average target price of $75.00.

Wealth Enhancement Advisory Services LLC cut its position in shares of First American Financial Corporation (NYSE:FAF - Free Report) by 50.3% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 12,415 shares of the insurance provider's stock after selling 12,557 shares during the quarter. Wealth Enhancement Advisory Services LLC's holdings in First American Financial were worth $785,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of FAF. Versant Capital Management Inc grew its stake in First American Financial by 645.7% in the first quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock valued at $63,000 after purchasing an additional 833 shares in the last quarter. GAMMA Investing LLC grew its stake in First American Financial by 8,031.7% in the first quarter. GAMMA Investing LLC now owns 87,091 shares of the insurance provider's stock valued at $5,716,000 after purchasing an additional 86,020 shares in the last quarter. Fifth Third Wealth Advisors LLC bought a new position in First American Financial in the first quarter valued at approximately $204,000. Rhumbline Advisers grew its stake in First American Financial by 1.2% in the first quarter. Rhumbline Advisers now owns 284,046 shares of the insurance provider's stock valued at $18,642,000 after purchasing an additional 3,427 shares in the last quarter. Finally, Merit Financial Group LLC grew its stake in First American Financial by 24.0% in the first quarter. Merit Financial Group LLC now owns 8,998 shares of the insurance provider's stock valued at $591,000 after purchasing an additional 1,739 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Barclays decreased their price target 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. Keefe, Bruyette & Woods raised their price target 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. Finally, Wall Street Zen upgraded First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $75.00.

First American Financial Trading Down 0.1%

Shares of NYSE FAF opened at $63.80 on Friday. First American Financial Corporation has a 12 month low of $53.09 and a 12 month high of $70.92. The stock has a 50 day moving average of $64.69 and a 200-day moving average of $61.53. The company has a market capitalization of $6.50 billion, a P/E ratio of 35.25 and a beta of 1.27.

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

First American Financial Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Monday, September 22nd were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Monday, September 22nd. This is an increase from First American Financial's previous quarterly dividend of $0.54. First American Financial's payout ratio is 121.55%.

First American Financial announced that its board has authorized a stock buyback program on Wednesday, July 23rd that permits the company to buyback $300.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 5.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total transaction of $229,705.00. Following the completion of the sale, the director directly owned 28,095 shares of the company's stock, valued at approximately $1,843,874.85. This trade represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 3.70% of the company's stock.

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.

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