First American Financial Corporation (NYSE:FAF) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts are generally positive on First American Financial, with seven covering analysts giving it an average rating of “Moderate Buy” and a consensus 1-year price target of $83.25.
• The company recently posted better-than-expected quarterly results, reporting EPS of $1.33 versus the $1.06 estimate and revenue of $1.85 billion, up 16.2% year over year.
• First American Financial also pays a quarterly dividend of $0.55 per share, which works out to an annual yield of about 3.2%.

First American Financial Corporation (NYSE:FAF - Get Free Report) has received an average rating of "Moderate Buy" from the seven analysts that are currently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $83.25.

A number of equities analysts have commented on the company. Wall Street Zen cut First American Financial from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Weiss Ratings upgraded shares of First American Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, April 22nd. Truist Financial lifted their target price on shares of First American Financial from $82.00 to $85.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Keefe, Bruyette & Woods lowered their price target on shares of First American Financial from $87.00 to $84.00 and set an "outperform" rating for the company in a report on Thursday, June 25th. Finally, Zacks Research cut shares of First American Financial from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd.

Insider Activity

In related news, Director Margaret M. Mccarthy sold 6,630 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $70.59, for a total value of $468,011.70. Following the sale, the director directly owned 24,024 shares of the company's stock, valued at $1,695,854.16. This trade represents a 21.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Lisa W. Cornehl sold 5,823 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $68.63, for a total value of $399,632.49. Following the transaction, the senior vice president directly owned 29,635 shares of the company's stock, valued at $2,033,850.05. The trade was a 16.42% decrease in their position. The disclosure for this sale is available in the SEC filing. 3.50% of the stock is owned by company insiders.

Institutional Trading of First American Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FAF. Bar Harbor Wealth Management increased its position in shares of First American Financial by 52.4% during the fourth quarter. Bar Harbor Wealth Management now owns 135,649 shares of the insurance provider's stock valued at $8,334,000 after buying an additional 46,639 shares during the period. Dimensional Fund Advisors LP lifted its holdings in First American Financial by 4.1% in the third quarter. Dimensional Fund Advisors LP now owns 4,293,573 shares of the insurance provider's stock worth $275,816,000 after buying an additional 168,706 shares during the period. Jefferies Financial Group Inc. purchased a new stake in First American Financial in the fourth quarter worth about $6,713,000. Tudor Investment Corp ET AL bought a new stake in First American Financial during the 3rd quarter valued at approximately $5,046,000. Finally, iSAM Funds UK Ltd bought a new stake in First American Financial during the 3rd quarter valued at approximately $1,360,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Stock Down 0.0%

NYSE FAF opened at $69.47 on Friday. The company has a 50-day simple moving average of $67.87 and a two-hundred day simple moving average of $65.07. First American Financial has a 12-month low of $53.09 and a 12-month high of $71.47. The firm has a market cap of $7.08 billion, a price-to-earnings ratio of 10.67, a PEG ratio of 0.68 and a beta of 1.23.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $1.33 EPS for the quarter, topping the consensus estimate of $1.06 by $0.27. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.The firm had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.80 billion. During the same quarter in the previous year, the business earned $0.84 earnings per share. The company's quarterly revenue was up 16.2% on a year-over-year basis. Equities analysts expect that First American Financial will post 6.75 earnings per share for the current fiscal year.

First American Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date was Monday, June 8th. First American Financial's dividend payout ratio is currently 33.79%.

First American Financial Company Profile

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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