First American Financial Corporation (NYSE:FAF) Declares Dividend Increase - $0.55 Per Share

Key Points

• First American Financial Corporation announced a quarterly dividend increase to $0.55 per share, reflecting a 1.9% rise from the previous quarterly dividend of $0.54.
• The company has a payout ratio of 35.3%, indicating that its dividend is well-covered by earnings, with expected earnings of $5.86 per share for the next year.
• First American Financial's stock is currently trading at $66.14, having recently reported a 14.2% increase in quarterly revenue year-over-year.

First American Financial Corporation (NYSE:FAF - Get Free Report) announced a quarterly dividend on Wednesday, September 10th, RTT News reports. Investors of record on Monday, September 22nd will be given a dividend of 0.55 per share by the insurance provider on Monday, September 29th. This represents a c) annualized dividend and a yield of 3.3%. This is a 1.9% increase from First American Financial's previous quarterly dividend of $0.54.

First American Financial has a payout ratio of 35.3% meaning its dividend is sufficiently covered by earnings. Analysts expect First American Financial to earn $5.86 per share next year, which means the company should continue to be able to cover its $2.16 annual dividend with an expected future payout ratio of 36.9%.

First American Financial Stock Performance

Shares of NYSE FAF traded down $0.62 during midday trading on Wednesday, reaching $66.14. The stock had a trading volume of 863,068 shares, compared to its average volume of 546,443. The firm has a market cap of $6.73 billion, a price-to-earnings ratio of 36.54 and a beta of 1.27. First American Financial has a twelve month low of $53.09 and a twelve month high of $70.92. The company's 50 day moving average price is $62.38 and its 200 day moving average price is $61.35.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.78 billion. During the same quarter in the previous year, the company earned $1.27 EPS. First American Financial's quarterly revenue was up 14.2% compared to the same quarter last year. Equities analysts forecast that First American Financial will post 5.35 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Margaret M. Mccarthy sold 3,500 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total value 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 trade represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 3.70% of the stock is currently owned by insiders.

Institutional Trading of First American Financial

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Orion Porfolio Solutions LLC increased its position in shares of First American Financial by 2.2% in the second quarter. Orion Porfolio Solutions LLC now owns 19,698 shares of the insurance provider's stock valued at $1,209,000 after buying an additional 417 shares in the last quarter. Thrivent Financial for Lutherans boosted its stake in shares of First American Financial by 129.0% in the second quarter. Thrivent Financial for Lutherans now owns 64,774 shares of the insurance provider's stock worth $3,976,000 after acquiring an additional 36,485 shares during the last quarter. Headlands Technologies LLC acquired a new stake in shares of First American Financial in the second quarter worth approximately $186,000. Corient Private Wealth LLC boosted its stake in shares of First American Financial by 5.8% in the second quarter. Corient Private Wealth LLC now owns 815,530 shares of the insurance provider's stock worth $50,065,000 after acquiring an additional 44,469 shares during the last quarter. Finally, Captrust Financial Advisors boosted its stake in shares of First American Financial by 163.3% in the second quarter. Captrust Financial Advisors now owns 22,444 shares of the insurance provider's stock worth $1,378,000 after acquiring an additional 13,920 shares during the last quarter. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

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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