First American Financial (NYSE:FAF) Shares Break Below Fifty Day Moving Average - Here's What Happened

Key Points

• First American Financial shares fell below their 50-day moving average, trading as low as $64.09 and last changing hands at $64.28, below the $66.36 average.
• Analysts maintain a Moderate Buy consensus, with an average price target of $81.60; seven rate the stock Buy and one rates it Hold.
• The company’s latest quarterly results fell short of estimates, with EPS of $1.78 versus $1.85 expected. It raised its quarterly dividend from $0.55 to $0.61 per share, implying a 3.8% yield.

First American Financial Corporation (NYSE:FAF - Get Free Report) shares crossed below its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $66.36 and traded as low as $64.09. First American Financial shares last traded at $64.28, with a volume of 955,231 shares traded.

Wall Street Analysts Forecast Growth

FAF has been the topic of a number of recent research reports. Benchmark initiated coverage on 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. Truist Financial lowered their price target on shares of First American Financial from $80.00 to $78.00 and set a "buy" rating for the company in a research report on Friday, October 23rd. Barclays dropped their price objective on shares of First American Financial from $79.00 to $75.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Weiss Ratings reiterated a "buy (b)" rating on shares of First American Financial in a research report on Friday, October 16th. Finally, Keefe, Bruyette & Woods upped their target price on shares of First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a research report on Friday, July 24th. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $81.60.

First American Financial Stock Performance

The firm has a 50 day moving average price of $66.36 and a two-hundred day moving average price of $67.54. The firm has a market capitalization of $6.56 billion, a P/E ratio of 9.05 and a beta of 1.22.

First American Financial (NYSE:FAF - Get Free Report) last posted its quarterly earnings data 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). The firm had revenue of $2.09 billion for the quarter, compared to analysts' expectations of $2.10 billion. First American Financial had a return on equity of 13.41% and a net margin of 9.05%. During the same quarter in the previous year, the firm posted $1.84 earnings per share. Equities research analysts forecast that First American Financial Corporation will post 6.94 earnings per share for the current fiscal year.

First American Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 8th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Tuesday, December 8th. This is a positive change from First American Financial's previous quarterly dividend of $0.55. This represents a $2.44 annualized dividend and a yield of 3.8%. First American Financial's dividend payout ratio (DPR) is currently 34.37%.

Institutional Trading of First American Financial

Large investors have recently modified their holdings of the company. GAMMA Investing LLC increased its position in First American Financial by 9.6% in the 2nd quarter. GAMMA Investing LLC now owns 1,696 shares of the insurance provider's stock worth $116,000 after buying an additional 148 shares during the period. Bessemer Group Inc. grew its stake in shares of First American Financial by 4.5% in the third quarter. Bessemer Group Inc. now owns 3,697 shares of the insurance provider's stock worth $224,000 after acquiring an additional 160 shares during the last quarter. Elevation Wealth Partners LLC grew its stake in shares of First American Financial by 70.7% in the third quarter. Elevation Wealth Partners LLC now owns 437 shares of the insurance provider's stock worth $27,000 after acquiring an additional 181 shares during the last quarter. Hantz Financial Services Inc. grew its stake in shares of First American Financial by 6.2% in the third quarter. Hantz Financial Services Inc. now owns 3,423 shares of the insurance provider's stock worth $208,000 after acquiring an additional 200 shares during the last quarter. Finally, Lido Advisors LLC increased its position in First American Financial by 5.8% during the third quarter. Lido Advisors LLC now owns 4,171 shares of the insurance provider's stock worth $253,000 after acquiring an additional 229 shares during the period. 89.05% of the stock is owned by institutional investors.

First American Financial Company Profile

First American Financial Corporation provides title insurance, settlement services and related solutions for residential and commercial real estate transactions. Its services help buyers, sellers, real estate professionals and mortgage lenders manage the transfer of property ownership and related risks. The company also offers property data, analytics and technology tools, along with specialty insurance products such as home warranties. Its services support activities including title searches, escrow and closing, and the management of real estate records.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.