First American Financial (NYSE:FAF) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded First American Financial from a "buy" to a "hold" in a report issued Saturday.
• First American beat expectations for the quarter (EPS $1.33 vs. $1.06 estimate; revenue $1.85B vs. $1.80B), with revenue up 16.2% year-over-year.
• Despite the downgrade, analyst sentiment remains broadly positive — one "Strong Buy" and six "Buy" ratings give an average rating of Buy and an average target price of $82.50, with several firms recently raising targets.

First American Financial (NYSE:FAF - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

A number of other brokerages also recently issued reports on FAF. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of First American Financial in a report on Friday, February 13th. Stephens boosted their price target on First American Financial from $81.00 to $84.00 and gave the company an "overweight" rating in a report on Monday. Truist Financial boosted their price target on First American Financial from $82.00 to $85.00 and gave the company a "buy" rating in a report on Friday, April 24th. Zacks Research upgraded First American Financial from a "hold" rating to a "strong-buy" rating in a report on Monday, April 27th. Finally, Barclays boosted their price target on First American Financial from $72.00 to $80.00 and gave the company an "overweight" rating in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the stock. Based on data from MarketBeat.com, First American Financial has an average rating of "Buy" and an average target price of $82.50.

First American Financial Trading Down 2.3%

NYSE FAF opened at $68.49 on Friday. First American Financial has a 1-year low of $53.09 and a 1-year high of $71.47. The stock has a 50-day moving average of $64.58 and a 200-day moving average of $63.67. The firm has a market cap of $6.98 billion, a PE ratio of 10.52, a price-to-earnings-growth ratio of 0.68 and a beta of 1.28.

First American Financial (NYSE:FAF - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company 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 EPS. First American Financial's revenue was up 16.2% compared to the same quarter last year. As a group, equities research analysts forecast that First American Financial will post 6.72 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Margaret M. Mccarthy sold 6,630 shares of the business's stock in a transaction that occurred on 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. The trade was a 21.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Parker S. Kennedy purchased 44,841 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was bought at an average cost of $67.85 per share, for a total transaction of $3,042,461.85. Following the completion of the transaction, the director owned 251,552 shares in the company, valued at approximately $17,067,803.20. This represents a 21.69% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.50% of the company's stock.

Institutional Trading of First American Financial

A number of hedge funds have recently made changes to their positions in FAF. Duncker Streett & Co. Inc. boosted its position in shares of First American Financial by 616.4% in the 1st quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider's stock worth $26,000 after purchasing an additional 376 shares in the last quarter. V Square Quantitative Management LLC bought a new position in First American Financial in the 4th quarter valued at approximately $27,000. Global Retirement Partners LLC lifted its position in First American Financial by 1,107.5% in the 4th quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider's stock valued at $30,000 after acquiring an additional 443 shares in the last quarter. SJS Investment Consulting Inc. lifted its position in First American Financial by 2,887.5% in the 3rd quarter. SJS Investment Consulting Inc. now owns 478 shares of the insurance provider's stock valued at $31,000 after acquiring an additional 462 shares in the last quarter. Finally, First Horizon Corp bought a new position in First American Financial in the 3rd quarter valued at approximately $37,000. 89.05% of the stock is owned by institutional investors.

About First American Financial

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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