First American Financial (NYSE:FAF) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded First American Financial from “strong-buy” to “hold,” even though other recent analyst updates were more positive. The stock still carries an average “Moderate Buy” rating with a consensus price target of $82.50.
• The company reported stronger-than-expected quarterly results on April 22, posting EPS of $1.33 versus the $1.06 estimate and revenue of $1.85 billion versus $1.80 billion expected. Revenue rose 16.2% year over year.
• Shares fell 3.5% and insider selling was disclosed, with SVP Lisa W. Cornehl and Director Margaret M. Mccarthy both selling stock in recent transactions. Institutional investors remain heavily involved, owning 89.05% of the company.

First American Financial (NYSE:FAF - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Several other research firms also recently issued reports on FAF. Truist Financial boosted their price objective on First American Financial from $82.00 to $85.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Barclays raised their target price on shares of First American Financial from $72.00 to $80.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. 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. Stephens reaffirmed an "overweight" rating and issued a $84.00 price objective on shares of First American Financial in a research note on Friday, June 12th. Finally, Wall Street Zen cut shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $82.50.

First American Financial Stock Down 3.5%

Shares of FAF stock opened at $67.01 on Tuesday. The stock has a 50-day simple moving average of $67.41 and a 200 day simple moving average of $64.84. The stock has a market capitalization of $6.83 billion, a P/E ratio of 10.29, a P/E/G ratio of 0.67 and a beta of 1.24. First American Financial has a fifty-two week low of $53.09 and a fifty-two week high of $71.47.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $1.33 EPS for the quarter, topping the consensus estimate of $1.06 by $0.27. The firm had revenue of $1.85 billion for the quarter, compared to analysts' expectations of $1.80 billion. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. First American Financial's revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.84 earnings per share. On average, sell-side analysts anticipate that First American Financial will post 6.81 earnings per share for the current year.

Insider Transactions at First American Financial

In related news, SVP Lisa W. Cornehl sold 5,823 shares of the firm'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 transaction of $399,632.49. Following the completion of the sale, the senior vice president directly owned 29,635 shares in the company, valued at approximately $2,033,850.05. This trade represents a 16.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Margaret M. Mccarthy sold 6,630 shares of the business's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $70.59, for a total transaction of $468,011.70. Following the transaction, the director directly owned 24,024 shares in the company, valued at $1,695,854.16. The trade was a 21.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On First American Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp increased its stake in shares of First American Financial by 121.3% in the first quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider's stock worth $97,000 after acquiring an additional 813 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in First American Financial by 10.8% during the first quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider's stock valued at $19,233,000 after purchasing an additional 28,666 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in First American Financial by 7.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider's stock valued at $27,180,000 after purchasing an additional 27,600 shares during the last quarter. Jane Street Group LLC grew its stake in First American Financial by 182.5% in the first quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider's stock valued at $4,435,000 after purchasing an additional 43,651 shares in the last quarter. Finally, Focus Partners Wealth grew its stake in First American Financial by 11.3% in the first quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider's stock valued at $281,000 after purchasing an additional 435 shares in the last quarter. Hedge funds and other institutional investors own 89.05% of the company's stock.

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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