First American Financial (NYSE:FAF) Downgraded by Wall Street Zen to Hold

Wall Street Zen cut shares of First American Financial (NYSE:FAF) from a buy rating to a hold rating in a research report report published on Saturday morning.

Other analysts have also recently issued reports about the stock. Barclays boosted their price objective on shares of First American Financial from $70.00 to $71.00 and gave the company a “cautious” rating in a research note on Monday, October 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of First American Financial in a research report on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods upped their price target on First American Financial from $77.00 to $79.00 and gave the stock an “outperform” rating in a research note on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, First American Financial has a consensus rating of “Hold” and a consensus price target of $75.25.

First American Financial Price Performance

FAF opened at $59.82 on Friday. First American Financial has a 12 month low of $53.09 and a 12 month high of $70.92. The business has a 50-day moving average of $64.48 and a two-hundred day moving average of $61.09. The stock has a market capitalization of $6.09 billion, a price-to-earnings ratio of 33.05 and a beta of 1.27.

First American Financial (NYSE:FAF) last released its earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.13. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The business had revenue of $1.84 billion for the quarter, compared to analysts’ expectations of $1.78 billion. During the same period last year, the company earned $1.27 earnings per share. The company’s quarterly revenue was up 14.2% on a year-over-year basis. Equities research analysts anticipate that First American Financial will post 5.35 earnings per share for the current year.

First American Financial Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Monday, September 22nd were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Monday, September 22nd. This is an increase from First American Financial’s previous quarterly dividend of $0.54. First American Financial’s dividend payout ratio (DPR) is 121.55%.

First American Financial declared that its board has approved a stock repurchase program on Wednesday, July 23rd that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to purchase up to 5.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other First American Financial news, Director Margaret M. Mccarthy sold 3,500 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total value of $229,705.00. Following the completion of the sale, the director owned 28,095 shares of the company’s stock, valued at $1,843,874.85. This trade represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 3.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On First American Financial

A number of large investors have recently added to or reduced their stakes in the company. Principal Financial Group Inc. lifted its holdings in First American Financial by 0.3% in the 1st quarter. Principal Financial Group Inc. now owns 236,876 shares of the insurance provider’s stock worth $15,546,000 after buying an additional 794 shares in the last quarter. GAMMA Investing LLC lifted its stake in shares of First American Financial by 23.9% in the first quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider’s stock worth $87,000 after acquiring an additional 256 shares in the last quarter. Cetera Investment Advisers lifted its stake in shares of First American Financial by 137.8% in the first quarter. Cetera Investment Advisers now owns 21,091 shares of the insurance provider’s stock worth $1,384,000 after acquiring an additional 12,222 shares in the last quarter. Envestnet Asset Management Inc. boosted its holdings in First American Financial by 2.8% in the first quarter. Envestnet Asset Management Inc. now owns 132,150 shares of the insurance provider’s stock valued at $8,673,000 after purchasing an additional 3,557 shares during the last quarter. Finally, Summit Trail Advisors LLC acquired a new stake in First American Financial during the 1st quarter valued at approximately $686,000. 89.05% of the stock is owned by institutional investors and hedge funds.

First American Financial Company Profile

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.