First American Financial (NYSE:FAF) Issues Quarterly Earnings Results

First American Financial (NYSE:FAF) released its earnings results on Wednesday. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.80 by $0.28, FiscalAI reports. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. The company had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.03 billion. During the same period in the prior year, the company posted $1.53 EPS. The company’s revenue was up 15.0% compared to the same quarter last year.

First American Financial Stock Down 1.7%

Shares of NYSE FAF opened at $70.43 on Thursday. First American Financial has a twelve month low of $56.20 and a twelve month high of $73.50. The stock has a market cap of $7.18 billion, a price-to-earnings ratio of 10.82, a P/E/G ratio of 0.70 and a beta of 1.23. The company’s fifty day moving average is $68.18 and its 200-day moving average is $65.85.

First American Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, June 8th. First American Financial’s dividend payout ratio (DPR) is currently 33.79%.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on FAF. Barclays increased their price objective on shares of First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Weiss Ratings restated a “buy (b)” rating on shares of First American Financial in a research report on Monday. Zacks Research cut First American Financial from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 23rd. Keefe, Bruyette & Woods dropped their price objective on First American Financial from $87.00 to $84.00 and set an “outperform” rating for the company in a report on Thursday, June 25th. Finally, Truist Financial increased their target price on First American Financial from $82.00 to $85.00 and gave the company a “buy” rating in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, First American Financial presently has a consensus rating of “Buy” and an average price target of $84.20.

Key Stories Impacting First American Financial

Here are the key news stories impacting First American Financial this week:

• Positive Sentiment: FAF beat Q2 expectations, posting adjusted EPS of $2.08 versus the $1.80 consensus, and revenue of $2.11 billion versus estimates of $2.03 billion, which points to solid underlying operating performance. Article Title
• Positive Sentiment: Several recent analyst updates nudged near- and medium-term earnings estimates slightly higher, suggesting some confidence in FAF’s earnings trajectory. Reference
• Neutral Sentiment: Zacks Research maintained a “Hold” rating, indicating analysts see the stock as fairly valued rather than a clear buy at current levels. Reference
• Negative Sentiment: Despite the earnings beat, the stock has been pressured as investors may be taking profits or weighing whether the improvement is enough to justify a further re-rating after the recent run-up. Article Title

Insiders Place Their Bets

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total transaction of $399,632.49. Following the transaction, the senior vice president directly owned 29,635 shares in the company, valued at approximately $2,033,850.05. The trade was a 16.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Margaret M. Mccarthy sold 6,630 shares of the stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $70.59, for a total value of $468,011.70. Following the completion of the sale, the director owned 24,024 shares of the company’s stock, valued at $1,695,854.16. This trade represents a 21.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 3.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On First American Financial

Several institutional investors and hedge funds have recently modified their holdings of FAF. Jones Financial Companies Lllp raised its holdings in First American Financial by 121.3% during the 1st quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider’s stock worth $97,000 after buying an additional 813 shares during the period. Goldman Sachs Group Inc. increased its position in shares of First American Financial by 10.8% during the first quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider’s stock worth $19,233,000 after acquiring an additional 28,666 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of First American Financial by 7.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider’s stock worth $27,180,000 after acquiring an additional 27,600 shares in the last quarter. Jane Street Group LLC increased its position in shares of First American Financial by 182.5% during the first quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider’s stock worth $4,435,000 after acquiring an additional 43,651 shares in the last quarter. Finally, Focus Partners Wealth raised its holdings in shares of First American Financial by 11.3% during the first quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider’s stock worth $281,000 after acquiring an additional 435 shares during the period. 89.05% of the stock is currently owned by institutional investors and hedge funds.

About First American Financial

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.