First American Financial (NYSE:FAF) Raised to Strong-Buy at Benchmark

First American Financial (NYSE:FAF) was upgraded by analysts at Benchmark to a “strong-buy” rating in a report released on Tuesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of First American Financial in a research report on Monday. Keefe, Bruyette & Woods dropped their target price on shares of First American Financial from $87.00 to $84.00 and set an “outperform” rating on the stock in a report on Thursday, June 25th. Zacks Research cut shares of First American Financial from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Wall Street Zen downgraded First American Financial from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Finally, Barclays lifted their price objective on First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, First American Financial presently has a consensus rating of “Buy” and a consensus price target of $84.20.

First American Financial Price Performance

Shares of FAF stock opened at $70.43 on Tuesday. The stock has a market capitalization of $7.18 billion, a PE ratio of 10.82, a PEG ratio of 0.70 and a beta of 1.23. The business’s 50 day simple moving average is $68.18 and its 200 day simple moving average is $65.85. First American Financial has a one year low of $56.20 and a one year high of $73.50.

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

Insider Buying and Selling at First American Financial

In related news, Director Margaret M. Mccarthy sold 6,630 shares of the business’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $70.59, for a total transaction of $468,011.70. Following the transaction, the director owned 24,024 shares in the company, valued at $1,695,854.16. The trade was a 21.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Lisa W. Cornehl sold 5,823 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total transaction of $399,632.49. Following the transaction, the senior vice president directly owned 29,635 shares in the company, valued at approximately $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. Insiders own 3.50% of the company’s stock.

Hedge Funds Weigh In On First American Financial

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Duncker Streett & Co. Inc. increased its position 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 in the last quarter. V Square Quantitative Management LLC bought a new position in First American Financial in the fourth quarter worth approximately $27,000. Global Retirement Partners LLC grew its stake in First American Financial by 1,107.5% in the fourth quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider’s stock valued at $30,000 after acquiring an additional 443 shares during the period. Danske Bank A S acquired a new stake in First American Financial in the third quarter valued at approximately $45,000. Finally, IFP Advisors Inc increased its holdings in shares of First American Financial by 568.8% during the fourth quarter. IFP Advisors Inc now owns 749 shares of the insurance provider’s stock valued at $46,000 after acquiring an additional 637 shares in the last quarter. Institutional investors own 89.05% of the company’s stock.

First American Financial News Roundup

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

First American Financial Company Profile

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.