First American Financial (NYSE:FAF) Shares Down 8.3% Following Weak Earnings

First American Financial Co. (NYSE:FAF - Get Free Report) shares were down 8.3% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $53.00 and last traded at $53.01. Approximately 231,537 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 686,556 shares. The stock had previously closed at $57.78.

The insurance provider reported $0.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.67 by ($0.22). First American Financial had a net margin of 3.61% and a return on equity of 8.27%. The business had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same period in the previous year, the firm posted $0.49 earnings per share. The firm's revenue was down 1.5% on a year-over-year basis.

First American Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 8th were paid a $0.53 dividend. The ex-dividend date was Thursday, March 7th. This represents a $2.12 dividend on an annualized basis and a yield of 3.91%. First American Financial's payout ratio is 101.92%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on FAF shares. Stephens restated an "overweight" rating and issued a $72.00 price target on shares of First American Financial in a report on Thursday. Deutsche Bank Aktiengesellschaft started coverage on First American Financial in a report on Wednesday, January 10th. They issued a "buy" rating on the stock. TheStreet lowered First American Financial from a "b-" rating to a "c+" rating in a report on Tuesday, March 12th. Finally, Keefe, Bruyette & Woods upgraded First American Financial from a "market perform" rating to an "outperform" rating and boosted their price target for the company from $66.00 to $69.00 in a report on Thursday, March 21st. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $67.75.

Institutional Investors Weigh In On First American Financial

Large investors have recently added to or reduced their stakes in the stock. Benjamin F. Edwards & Company Inc. bought a new stake in First American Financial during the fourth quarter worth $26,000. Venturi Wealth Management LLC lifted its stake in First American Financial by 82.3% during the first quarter. Venturi Wealth Management LLC now owns 505 shares of the insurance provider's stock worth $31,000 after purchasing an additional 228 shares during the last quarter. GAMMA Investing LLC bought a new stake in First American Financial during the fourth quarter worth $33,000. Headlands Technologies LLC bought a new stake in First American Financial during the fourth quarter worth $44,000. Finally, Principal Securities Inc. bought a new stake in First American Financial during the fourth quarter worth $45,000. Institutional investors and hedge funds own 89.05% of the company's stock.

First American Financial Stock Down 6.1 %

The firm has a 50 day simple moving average of $57.70 and a two-hundred day simple moving average of $58.29. The stock has a market capitalization of $5.62 billion, a P/E ratio of 25.59 and a beta of 1.28.

About First American Financial

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.