Wellington Management Group LLP Has $113.61 Million Stock Holdings in First American Financial Corporation $FAF

Key Points

• Wellington Management Group LLP sold 4,454 shares of First American Financial, reducing its holdings to 1,731,103 shares, valued at $113.6 million.
• First American Financial reported a 14.2% increase in revenue for the last quarter, with earnings per share of $1.53, surpassing analysts' expectations.
• The company's board has initiated a stock repurchase plan to buy back $300 million in shares, indicating confidence in the stock's valuation.

Wellington Management Group LLP trimmed its holdings in First American Financial Corporation (NYSE:FAF - Free Report) by 0.3% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,731,103 shares of the insurance provider's stock after selling 4,454 shares during the period. Wellington Management Group LLP owned 1.68% of First American Financial worth $113,612,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Alpine Bank Wealth Management acquired a new stake in shares of First American Financial in the first quarter worth $28,000. Richardson Capital Management LLC acquired a new stake in shares of First American Financial in the first quarter worth $39,000. Versant Capital Management Inc lifted its stake in shares of First American Financial by 645.7% in the first quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock worth $63,000 after buying an additional 833 shares during the last quarter. UMB Bank n.a. lifted its stake in shares of First American Financial by 132.1% in the first quarter. UMB Bank n.a. now owns 1,216 shares of the insurance provider's stock worth $80,000 after buying an additional 692 shares during the last quarter. Finally, GAMMA Investing LLC lifted its stake in shares of First American Financial by 23.9% in 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 during the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on FAF. Keefe, Bruyette & Woods boosted their price objective on shares of First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Wall Street Zen upgraded shares of First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Finally, Barclays reduced their price objective on shares of 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. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $75.00.

Insider Buying and Selling

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 transaction of $229,705.00. Following the completion of the transaction, the director directly owned 28,095 shares in the company, valued at $1,843,874.85. This represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 3.70% of the stock is currently owned by insiders.

First American Financial Trading Up 0.6%

NYSE:FAF traded up $0.39 during trading hours on Wednesday, hitting $66.59. 770,831 shares of the company traded hands, compared to its average volume of 600,803. The stock has a market capitalization of $6.78 billion, a price-to-earnings ratio of 36.79 and a beta of 1.24. First American Financial Corporation has a twelve month low of $53.09 and a twelve month high of $70.92. The firm has a 50-day moving average of $61.29 and a 200 day moving average of $61.17.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 EPS for the quarter, beating the consensus estimate of $1.40 by $0.13. The firm had revenue of $1.84 billion during the quarter, compared to analysts' expectations 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 company earned $1.27 EPS. Equities research analysts predict that First American Financial Corporation will post 5.35 earnings per share for the current fiscal year.

First American Financial declared that its board has approved a stock buyback plan on Wednesday, July 23rd that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the insurance provider to purchase up to 5.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

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.