First American Financial (NYSE:FAF) Stock Price Up 6.4% After Strong Earnings

First American Financial Corporation (NYSE:FAF - Get Free Report) shares rose 6.4% on Thursday following a better than expected earnings announcement. The company traded as high as $61.17 and last traded at $61.31. Approximately 701,365 shares changed hands during trading, a decline of 24% from the average daily volume of 918,453 shares. The stock had previously closed at $57.62.

The insurance provider reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.13. The company had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. First American Financial had a return on equity of 10.42% and a net margin of 2.90%. First American Financial's revenue for the quarter was up 14.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.27 earnings per share.

First American Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 9th were given a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.57%. The ex-dividend date was Monday, June 9th. First American Financial's dividend payout ratio (DPR) is presently 119.34%.

First American Financial declared that its board has authorized a stock repurchase 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 typically a sign that the company's management believes its shares are undervalued.

Analyst Ratings Changes

Several research analysts recently weighed in on FAF shares. Barclays dropped their price target on 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. Keefe, Bruyette & Woods upped their price target on First American Financial from $75.00 to $77.00 and gave the company an "outperform" rating in a research report on Monday, April 28th. Finally, Wall Street Zen lowered First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, First American Financial presently has an average rating of "Moderate Buy" and a consensus target price of $74.50.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Alpine Bank Wealth Management acquired a new position in First American Financial in the 1st quarter worth about $28,000. Richardson Capital Management LLC acquired a new position in First American Financial in the 1st quarter worth about $39,000. Ameritas Advisory Services LLC acquired a new position in First American Financial in the 2nd quarter worth about $48,000. Versant Capital Management Inc increased its position in First American Financial by 645.7% in the 1st quarter. Versant Capital Management Inc now owns 962 shares of the insurance provider's stock worth $63,000 after purchasing an additional 833 shares during the last quarter. Finally, Ransom Advisory Ltd acquired a new position in First American Financial in the 1st quarter worth about $66,000. 89.05% of the stock is owned by institutional investors and hedge funds.

First American Financial Trading Up 1.5%

The firm has a 50-day simple moving average of $58.15 and a two-hundred day simple moving average of $60.91. The company has a market capitalization of $6.23 billion, a price-to-earnings ratio of 33.43 and a beta of 1.24.

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.