First American Financial Corporation (NYSE:FAF) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• First American Financial Corporation has received a consensus rating of “Moderate Buy” from five research firms, with an average 12-month target price of $75.00.
• The company reported $1.53 EPS for the last quarter, exceeding expectations and marking a 14.2% increase in quarterly revenue compared to the same period last year.
• First American Financial has initiated a $300 million stock buyback plan and recently increased its quarterly dividend from $0.54 to $0.55 per share.

First American Financial Corporation (NYSE:FAF - Get Free Report) has earned an average recommendation of "Moderate Buy" from the five research firms that are presently covering the company, Marketbeat reports. Two analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $75.00.

A number of equities analysts have recently commented on the stock. Keefe, Bruyette & Woods raised their target price on shares of First American Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of First American Financial in a research report on Saturday, September 27th. Barclays reduced their target price on shares of First American Financial from $72.00 to $70.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 8th. Finally, Wall Street Zen raised shares of First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th.

First American Financial Price Performance

Shares of NYSE:FAF traded up $0.60 during trading on Friday, reaching $64.37. 590,731 shares of the company were exchanged, compared to its average volume of 751,395. The firm has a market capitalization of $6.55 billion, a PE ratio of 12.60 and a beta of 1.27. The business's fifty day simple moving average is $64.77 and its 200-day simple moving average is $61.53. First American Financial has a 12-month low of $53.09 and a 12-month high of $70.92.

First American Financial (NYSE:FAF - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 EPS for the quarter, topping analysts' consensus estimates of $1.40 by $0.13. The business had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The company's quarterly revenue was up 14.2% compared to the same quarter last year. During the same period last year, the company posted $1.27 earnings per share. On average, sell-side analysts anticipate that First American Financial will post 5.35 EPS for the current fiscal year.

First American Financial Increases Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend was Monday, September 22nd. This is a positive change from First American Financial's previous quarterly dividend of $0.54. This represents a $2.20 annualized dividend and a yield of 3.4%. First American Financial's dividend payout ratio is 121.55%.

First American Financial declared that its Board of Directors has initiated a stock buyback plan on Wednesday, July 23rd that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the insurance provider to purchase up to 5.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at First American Financial

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 shares were sold at an average price of $65.63, for a total transaction of $229,705.00. Following the transaction, the director directly owned 28,095 shares of the company's stock, 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 filing with the SEC, which is available through this link. 3.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On First American Financial

Several institutional investors have recently bought and sold shares of FAF. Norges Bank acquired a new stake in First American Financial in the second quarter valued at approximately $77,143,000. Channing Capital Management LLC boosted its stake in First American Financial by 875.1% in the second quarter. Channing Capital Management LLC now owns 1,323,513 shares of the insurance provider's stock valued at $81,250,000 after acquiring an additional 1,187,787 shares in the last quarter. Boston Partners boosted its stake in First American Financial by 20.0% in the second quarter. Boston Partners now owns 5,632,945 shares of the insurance provider's stock valued at $345,971,000 after acquiring an additional 940,687 shares in the last quarter. Frontier Capital Management Co. LLC acquired a new stake in First American Financial in the second quarter valued at approximately $47,600,000. Finally, Nuveen LLC acquired a new stake in First American Financial in the first quarter valued at approximately $20,636,000. 89.05% of the stock is currently owned by institutional investors and hedge funds.

First American Financial Company Profile

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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