First American Financial Corporation (NYSE:FAF) Short Interest Update

Key Points

• Short interest in First American Financial Corporation (NYSE:FAF) decreased by 32.9% in July, with approximately 2.3% of the company's stock short sold as of July 31st.
• Wall Street analysts have generally favorable views on the stock, with one rating it a "buy" and others setting a consensus price target of $75.00.
• First American Financial's Board of Directors authorized a $300 million stock repurchase plan, indicating management believes the shares are undervalued.

First American Financial Corporation (NYSE:FAF - Get Free Report) saw a large decline in short interest in the month of July. As of July 31st, there was short interest totaling 2,200,000 shares, adeclineof32.9% from the July 15th total of 3,280,000 shares. Based on an average trading volume of 1,200,000 shares, the days-to-cover ratio is presently 1.8 days. Approximately2.3% of the shares of the company are short sold. Approximately2.3% of the shares of the company are short sold. Based on an average trading volume of 1,200,000 shares, the days-to-cover ratio is presently 1.8 days.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on FAF shares. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Barclays decreased their price objective on First American Financial from $72.00 to $70.00 and set an "equal weight" rating for the company in a report on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods boosted their price objective on First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, First American Financial presently has an average rating of "Moderate Buy" and an average target price of $75.00.

Insider Buying and Selling

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total transaction of $229,705.00. Following the completion of the sale, the director owned 28,095 shares of the company's stock, valued at approximately $1,843,874.85. The trade was a 11.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 3.70% of the company's stock.

Institutional Investors Weigh In On First American Financial

Several large investors have recently bought and sold shares of FAF. Raymond James Financial Inc. purchased a new stake in First American Financial during the 4th quarter worth approximately $7,932,000. Barclays PLC boosted its holdings in shares of First American Financial by 61.1% during the 4th quarter. Barclays PLC now owns 98,006 shares of the insurance provider's stock worth $6,118,000 after purchasing an additional 37,185 shares during the last quarter. Mariner LLC lifted its holdings in First American Financial by 34.5% in the fourth quarter. Mariner LLC now owns 6,964 shares of the insurance provider's stock valued at $435,000 after acquiring an additional 1,788 shares during the last quarter. Jump Financial LLC lifted its holdings in First American Financial by 120.4% in the fourth quarter. Jump Financial LLC now owns 11,269 shares of the insurance provider's stock valued at $704,000 after acquiring an additional 6,155 shares during the last quarter. Finally, Capital International Investors acquired a new position in First American Financial in the fourth quarter valued at approximately $41,626,000. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

First American Financial Stock Up 2.8%

Shares of FAF stock traded up $1.8260 on Friday, hitting $66.4860. The company had a trading volume of 584,107 shares, compared to its average volume of 676,615. First American Financial has a twelve month low of $53.09 and a twelve month high of $70.92. The company has a 50-day moving average price of $60.78 and a 200-day moving average price of $61.12. The firm has a market cap of $6.77 billion, a P/E ratio of 36.73 and a beta of 1.24.

First American Financial (NYSE:FAF - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.40 by $0.13. First American Financial had a return on equity of 10.41% and a net margin of 2.90%.The firm had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the previous year, the business earned $1.27 EPS. First American Financial's revenue for the quarter was up 14.2% compared to the same quarter last year. Equities research analysts expect that First American Financial will post 5.35 EPS for the current year.

First American Financial announced that its board has approved a stock buyback program on Wednesday, July 23rd that permits the company to buyback $300.00 million in shares. This buyback authorization permits the insurance provider to repurchase up to 5.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its shares are undervalued.

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.