First American Financial Corporation (NYSE:FAF) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of First American Financial Corporation (NYSE:FAF) have earned a consensus rating of “Moderate Buy” from the eight ratings firms that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $84.60.

FAF has been the subject of a number of recent analyst reports. Stephens reiterated an “overweight” rating and issued a $84.00 price objective on shares of First American Financial in a report on Friday, June 12th. Benchmark began coverage on First American Financial in a report on Tuesday, July 21st. They set a “buy” rating and a $85.00 target price on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of First American Financial in a research report on Monday, July 20th. Barclays increased their target price on First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Finally, Zacks Research downgraded First American Financial from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 23rd.

First American Financial Stock Up 1.2%

First American Financial stock opened at $71.99 on Friday. The business’s 50-day simple moving average is $73.10 and its 200 day simple moving average is $68.53. The stock has a market cap of $7.35 billion, a price-to-earnings ratio of 9.97, a P/E/G ratio of 0.66 and a beta of 1.21. First American Financial has a 12-month low of $56.20 and a 12-month high of $79.87.

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 13.31%. The company had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.03 billion. During the same quarter last year, the firm earned $1.53 EPS. The company’s revenue for the quarter was up 15.0% on a year-over-year basis. As a group, sell-side analysts expect that First American Financial will post 7.11 EPS for the current year.

First American Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, October 5th. Shareholders of record on Monday, September 28th will be given a dividend of $0.55 per share. The ex-dividend date of this dividend is Monday, September 28th. This represents a $2.20 annualized dividend and a yield of 3.1%. First American Financial’s payout ratio is 30.47%.

Insider Activity at First American Financial

In other news, CAO Steven Adams sold 3,253 shares of the firm’s stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the transaction, the chief accounting officer owned 10,234 shares in the company, valued at $767,447.66. This trade represents a 24.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Jackson Creek Investment Advisors LLC bought a new stake in shares of First American Financial during the 4th quarter worth approximately $1,608,000. Jefferies Financial Group Inc. acquired a new position in First American Financial during the fourth quarter worth $6,713,000. Mendon Capital Advisors Corp bought a new stake in First American Financial during the first quarter worth $71,680,000. BlackRock Inc. acquired a new stake in First American Financial in the second quarter valued at $643,570,000. Finally, Gabelli Funds LLC grew its position in shares of First American Financial by 81.6% in the 4th quarter. Gabelli Funds LLC now owns 79,362 shares of the insurance provider’s stock valued at $4,876,000 after acquiring an additional 35,650 shares during the period. 89.05% of the stock is owned by institutional investors and hedge funds.

First American Financial Company Profile

First American Financial Corporation (NYSE: FAF) provides title insurance, settlement services and risk solutions for real estate transactions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in ownership records, liens and other title-related issues.

The company also offers escrow and closing services, real estate data and analytics, valuation products, and technology solutions designed to support mortgage lenders, real estate professionals, homebuilders and commercial property participants.