First American Financial (NYSE:FAF) Stock Price Up 6.2% – Still a Buy?

First American Financial Corporation (NYSE:FAF)’s share price traded up 6.2% during trading on Friday . The stock traded as high as $73.22 and last traded at $73.21. Approximately 57,913 shares changed hands during trading, a decline of 94% from the average session volume of 1,009,367 shares. The stock had previously closed at $68.96.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Truist Financial increased their price target on First American Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Weiss Ratings reiterated a “buy (b)” rating on shares of First American Financial in a research report on Monday. Barclays raised their target price on shares of First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. Keefe, Bruyette & Woods cut their price target on shares of First American Financial from $87.00 to $84.00 and set an “outperform” rating on the stock in a research note on Thursday, June 25th. Finally, Stephens reiterated an “overweight” rating and issued a $84.00 price target on shares of First American Financial in a report on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, First American Financial currently has an average rating of “Moderate Buy” and a consensus price target of $84.20.

First American Financial Stock Up 9.4%

The stock’s fifty day moving average is $68.22 and its two-hundred day moving average is $65.91. The firm has a market capitalization of $7.69 billion, a price-to-earnings ratio of 10.45, a P/E/G ratio of 0.69 and a beta of 1.23.

First American Financial (NYSE:FAF) last issued 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. First American Financial had a net margin of 9.33% and a return on equity of 13.43%. The business had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.03 billion. During the same period last year, the business posted $1.53 EPS. First American Financial’s revenue was up 15.0% on a year-over-year basis. As a group, analysts anticipate that First American Financial Corporation will post 6.74 EPS for the current year.

First American Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Monday, June 8th. First American Financial’s dividend payout ratio is currently 33.79%.

Insider Activity at First American Financial

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $68.63, for a total transaction of $399,632.49. Following the transaction, the senior vice president owned 29,635 shares in the company, valued at $2,033,850.05. This represents a 16.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 3.50% of the company’s stock.

Institutional Inflows and Outflows

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