First American Financial (NYSE:FAF) Trading Down 8.3% After Earnings Miss

First American Financial Co. (NYSE:FAF)’s share price fell 8.3% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $53.00 and last traded at $53.01. 231,537 shares changed hands during trading, a decline of 66% from the average session volume of 686,556 shares. The stock had previously closed at $57.78.

The insurance provider reported $0.45 EPS for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.22). The firm had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.42 billion. First American Financial had a net margin of 3.61% and a return on equity of 8.27%. The business’s revenue was down 1.5% compared to the same quarter last year. During the same period last year, the company posted $0.49 EPS.

First American Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Friday, March 8th were given a dividend of $0.53 per share. The ex-dividend date was Thursday, March 7th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.99%. First American Financial’s dividend payout ratio (DPR) is presently 101.92%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on FAF shares. Keefe, Bruyette & Woods raised shares of First American Financial from a “market perform” rating to an “outperform” rating and increased their price objective for the stock from $66.00 to $69.00 in a research report on Thursday, March 21st. TheStreet lowered shares of First American Financial from a “b-” rating to a “c+” rating in a report on Tuesday, March 12th. Deutsche Bank Aktiengesellschaft started coverage on shares of First American Financial in a report on Wednesday, January 10th. They issued a “buy” rating on the stock. Finally, Stephens restated an “overweight” rating and issued a $73.00 target price on shares of First American Financial in a report on Thursday, February 8th. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $68.00.

Hedge Funds Weigh In On First American Financial

A number of large investors have recently added to or reduced their stakes in the business. Benjamin F. Edwards & Company Inc. bought a new position in shares of First American Financial during the fourth quarter valued at about $26,000. Venturi Wealth Management LLC grew its holdings in First American Financial by 82.3% in the first quarter. Venturi Wealth Management LLC now owns 505 shares of the insurance provider’s stock worth $31,000 after purchasing an additional 228 shares during the period. GAMMA Investing LLC purchased a new stake in First American Financial in the fourth quarter worth about $33,000. Headlands Technologies LLC purchased a new stake in First American Financial in the fourth quarter worth about $44,000. Finally, Principal Securities Inc. purchased a new stake in shares of First American Financial during the fourth quarter valued at approximately $45,000. Hedge funds and other institutional investors own 89.05% of the company’s stock.

First American Financial Stock Down 8.1 %

The stock’s fifty day moving average price is $57.72 and its 200 day moving average price is $58.30. The stock has a market cap of $5.50 billion, a PE ratio of 25.67 and a beta of 1.28.

About First American Financial

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.