First American Financial (NYSE:FAF) Share Price Crosses Above Two Hundred Day Moving Average - What's Next?

Key Points

• First American Financial shares rose above their 200-day moving average of $67.43, reaching $68.45 intraday before last trading at $67.63.
• Analysts maintain a Moderate Buy consensus with an average price target of $81.60; seven rate the stock Buy and one rates it Hold, though Barclays and Truist recently lowered their targets.
• The company’s latest quarterly earnings missed estimates, with EPS of $1.78 versus $1.85 expected. First American also raised its quarterly dividend from $0.55 to $0.61 per share, a 3.6% annualized yield.

First American Financial Corporation (NYSE:FAF - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $67.43 and traded as high as $68.45. First American Financial shares last traded at $67.6280, with a volume of 1,211,906 shares trading hands.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Barclays lowered their target price on shares of First American Financial from $79.00 to $75.00 and set an "overweight" rating on the stock in a research report on Friday, October 23rd. Truist Financial cut their price target on First American Financial from $80.00 to $78.00 and set a "buy" rating for the company in a report on Friday, October 23rd. Weiss Ratings restated a "buy (b)" rating on shares of First American Financial in a report on Friday, October 16th. Keefe, Bruyette & Woods upped their price target on First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. Finally, Benchmark began coverage on shares of First American Financial in a research note on Tuesday, July 21st. They issued a "buy" rating and a $85.00 target price on the stock. Seven investment 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 a consensus target price of $81.60.

First American Financial Stock Performance

The company has a market cap of $6.90 billion, a P/E ratio of 9.53 and a beta of 1.22. The business has a fifty day simple moving average of $67.19 and a 200 day simple moving average of $67.43.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results on Wednesday, October 21st. The insurance provider reported $1.78 earnings per share for the quarter, missing the consensus estimate of $1.85 by ($0.07). First American Financial had a net margin of 9.05% and a return on equity of 13.41%. The business had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter in the previous year, the firm earned $1.84 EPS. Equities research analysts expect that First American Financial Corporation will post 6.94 EPS for the current year.

First American Financial Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 8th will be paid a $0.61 dividend. The ex-dividend date is Tuesday, December 8th. This is an increase from First American Financial's previous quarterly dividend of $0.55. This represents a $2.44 dividend on an annualized basis and a yield of 3.6%. First American Financial's payout ratio is presently 34.37%.

Institutional Trading of First American Financial

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of First American Financial during the second quarter valued at $643,570,000. Dimensional Fund Advisors LP grew its holdings in shares of First American Financial by 5.6% during the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider's stock valued at $279,529,000 after buying an additional 245,279 shares in the last quarter. Reinhart Partners LLC. lifted its position in shares of First American Financial by 1.9% in the second quarter. Reinhart Partners LLC. now owns 1,553,234 shares of the insurance provider's stock worth $106,537,000 after purchasing an additional 28,534 shares in the last quarter. Davis Asset Management L.P. purchased a new stake in First American Financial in the 2nd quarter worth approximately $102,885,000. Finally, First Trust Advisors LP grew its holdings in shares of First American Financial by 110.2% during the 1st quarter. First Trust Advisors LP now owns 1,304,820 shares of the insurance provider's stock valued at $78,668,000 after acquiring an additional 684,117 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

About First American Financial

First American Financial Corporation NYSE: FAF is a provider of title insurance, settlement services and financial technology solutions for the real estate and mortgage industries. Through its First American Title operations, the company helps protect property owners, lenders and other parties against title defects and related risks during real estate transactions.

The company's services include title searches and examination, title insurance policies, escrow and closing services, and transaction coordination.

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