Keefe, Bruyette & Woods Has Lowered Expectations for First American Financial (NYSE:FAF) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on First American Financial from $87 to $84, while keeping an outperform rating. The new target still implies roughly 26.5% upside from the previous close.
• Analyst sentiment remains generally positive: First American Financial has six Buy ratings and one Hold, with a consensus Moderate Buy and an average price target of $83.25.
• The stock fell 1.3% to $66.39, even after the company recently reported strong quarterly results with EPS of $1.33 beating estimates and revenue of $1.85 billion topping expectations.

First American Financial (NYSE:FAF - Get Free Report) had its price target reduced by analysts at Keefe, Bruyette & Woods from $87.00 to $84.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "outperform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective indicates a potential upside of 26.52% from the company's previous close.

A number of other analysts have also commented on the company. Barclays lifted their price target on First American Financial from $72.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Wall Street Zen downgraded shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Stephens reissued an "overweight" rating and set a $84.00 target price on shares of First American Financial in a report on Friday, June 12th. Weiss Ratings upgraded shares of First American Financial from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, April 22nd. Finally, Truist Financial raised their price target on shares of First American Financial from $82.00 to $85.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $83.25.

First American Financial Stock Down 1.3%

Shares of NYSE FAF traded down $0.86 during midday trading on Thursday, reaching $66.39. 283,499 shares of the company were exchanged, compared to its average volume of 1,028,310. The stock's 50-day moving average price is $67.41 and its 200-day moving average price is $64.84. The stock has a market cap of $6.77 billion, a P/E ratio of 10.20, a PEG ratio of 0.67 and a beta of 1.24. First American Financial has a one year low of $53.09 and a one year high of $71.47.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.27. The company had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.80 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.First American Financial's revenue for the quarter was up 16.2% on a year-over-year basis. During the same quarter last year, the business posted $0.84 EPS. On average, equities research analysts anticipate that First American Financial will post 6.81 EPS for the current year.

Insider Activity at First American Financial

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of the 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 owned 29,635 shares of the company's stock, valued at approximately $2,033,850.05. This represents a 16.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 transaction of $468,011.70. Following the completion of the transaction, the director owned 24,024 shares in the company, valued at $1,695,854.16. This trade represents a 21.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 3.50% of the company's stock.

Institutional Trading of First American Financial

Large investors have recently bought and sold shares of the business. V Square Quantitative Management LLC acquired a new position in shares of First American Financial in the 4th quarter valued at about $27,000. Duncker Streett & Co. Inc. increased its holdings in First American Financial by 616.4% in the first 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. Global Retirement Partners LLC increased its holdings in First American Financial by 1,107.5% in the fourth quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider's stock worth $30,000 after purchasing an additional 443 shares in the last quarter. Danske Bank A S acquired a new position in First American Financial in the third quarter valued at approximately $45,000. Finally, IFP Advisors Inc lifted its stake in First American Financial by 568.8% in the fourth quarter. IFP Advisors Inc now owns 749 shares of the insurance provider's stock valued at $46,000 after buying an additional 637 shares during the period. 89.05% of the stock is currently owned by institutional investors and hedge funds.

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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