First American Financial (NYSE:FAF) Upgraded by Benchmark to Strong-Buy Rating

Benchmark upgraded shares of First American Financial (NYSE:FAF) to a strong-buy rating in a report issued on Tuesday morning,Zacks.com reports.

Other research analysts have also issued reports about the company. Keefe, Bruyette & Woods reduced their price target on First American Financial from $87.00 to $84.00 and set an “outperform” rating for the company in a research report on Thursday, June 25th. Stephens reaffirmed an “overweight” rating and set a $84.00 price objective on shares of First American Financial in a research report on Friday, June 12th. Zacks Research lowered First American Financial from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 23rd. Truist Financial boosted their target price on shares of First American Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Finally, Wall Street Zen lowered shares of First American Financial from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $84.20.

First American Financial Stock Down 1.7%

Shares of FAF stock opened at $70.43 on Tuesday. The firm has a market cap of $7.18 billion, a price-to-earnings ratio of 10.82, a PEG ratio of 0.70 and a beta of 1.23. First American Financial has a 52-week low of $56.20 and a 52-week high of $73.50. The company’s 50 day moving average is $68.18 and its 200 day moving average is $65.85.

First American Financial (NYSE:FAF) last posted its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, topping analysts’ consensus estimates of $1.80 by $0.28. The company had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.03 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.First American Financial’s revenue was up 15.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.53 earnings per share. Analysts anticipate that First American Financial will post 6.74 EPS for the current fiscal year.

First American Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 3.1%. The ex-dividend date was Monday, June 8th. First American Financial’s dividend payout ratio is currently 33.79%.

Insiders Place Their Bets

In other news, Director Margaret M. Mccarthy sold 6,630 shares of the firm’s stock in a transaction on 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Lisa W. Cornehl sold 5,823 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were 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 in the company, valued at $2,033,850.05. This represents a 16.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On First American Financial

A number of large investors have recently modified their holdings of the business. Duncker Streett & Co. Inc. raised its position in shares of 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 purchasing an additional 376 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in First American Financial during the 4th quarter worth approximately $27,000. Global Retirement Partners LLC increased its stake 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 valued at $30,000 after purchasing an additional 443 shares in the last quarter. Danske Bank A S acquired a new position in First American Financial during the 3rd quarter valued at approximately $45,000. Finally, IFP Advisors Inc increased its stake in First American Financial by 568.8% during the 4th quarter. IFP Advisors Inc now owns 749 shares of the insurance provider’s stock valued at $46,000 after purchasing an additional 637 shares in the last quarter. Hedge funds and other institutional investors own 89.05% of the company’s stock.

Trending Headlines about 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

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.