First American Financial (NYSE:FAF) Shares Up 6.2% – Here’s Why

First American Financial Corporation (NYSE:FAF) rose 6.2% on Friday . The company traded as high as $73.22 and last traded at $73.21. Approximately 57,913 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 1,009,367 shares. The stock had previously closed at $68.96.

Wall Street Analyst Weigh In

Several brokerages have commented on FAF. Zacks Research downgraded First American Financial from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. Wall Street Zen cut First American Financial from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Benchmark began coverage on First American Financial in a research note on Tuesday. They issued a “buy” rating and a $85.00 price target for the company. Barclays raised their price objective on First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 7th. Finally, Truist Financial lifted their price objective on First American Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a research note on Friday, April 24th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, First American Financial has an average rating of “Moderate Buy” and a consensus target price of $84.20.

First American Financial Price Performance

The company’s 50-day moving average price is $68.22 and its two-hundred day moving average price is $65.91. The company has a market capitalization of $7.69 billion, a price-to-earnings ratio of 10.45, a PEG ratio of 0.69 and a beta of 1.23.

First American Financial (NYSE:FAF) last released its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.28. The business had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.03 billion. First American Financial had a net margin of 9.33% and a return on equity of 13.43%. First American Financial’s revenue for the quarter was up 15.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.53 earnings per share. On average, equities research analysts expect that First American Financial Corporation will post 6.74 EPS for the current fiscal year.

First American Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were given a $0.55 dividend. The ex-dividend date of this dividend was Monday, June 8th. This represents a $2.20 annualized dividend and a dividend yield of 2.9%. First American Financial’s dividend payout ratio (DPR) is 33.79%.

Insider Buying and Selling at First American Financial

In other news, SVP Lisa W. Cornehl sold 5,823 shares of the business’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total value of $399,632.49. Following the transaction, the senior vice president directly owned 29,635 shares of the company’s stock, valued at $2,033,850.05. The trade was a 16.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 3.50% of the company’s stock.

Institutional Investors Weigh In On First American Financial

Several large investors have recently added to or reduced their stakes in FAF. V Square Quantitative Management LLC bought a new stake in First American Financial in the fourth quarter worth approximately $27,000. Duncker Streett & Co. Inc. boosted its holdings in shares of First American Financial by 616.4% during the 1st quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider’s stock worth $26,000 after buying an additional 376 shares in the last quarter. Global Retirement Partners LLC boosted its holdings in shares of First American Financial by 1,107.5% during the 4th quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider’s stock worth $30,000 after buying an additional 443 shares in the last quarter. Danske Bank A S bought a new position in shares of First American Financial during the 3rd quarter worth approximately $45,000. Finally, IFP Advisors Inc grew its position in shares of First American Financial by 568.8% during the 4th quarter. IFP Advisors Inc now owns 749 shares of the insurance provider’s stock worth $46,000 after buying an additional 637 shares during the period. Institutional investors and hedge funds own 89.05% of the company’s stock.

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.