First American Financial Co. (NYSE:FAF) Receives Average Rating of “Moderate Buy” from Analysts
First American Financial Co. (NYSE:FAF) has received an average rating of “Moderate Buy” from five brokerages currently covering the stock, according to MarketBeat Ratings. Among these analysts, one has issued a hold recommendation while four have advised buying the stock. The average target price for the next year is set at $69.00.
Numerous equities analysts have shared their insights on FAF shares. Keefe, Bruyette & Woods raised their target price from $66.00 to $72.00 and assigned an “outperform” rating in a report released on September 4. Similarly, Stephens reiterated an “overweight” rating, setting a target price of $66.00 in a research note dated July 25. Barclays also elevated their price objective from $61.00 to $70.00, while giving an “equal weight” rating in a report published on October 8. Lastly, Truist Financial increased their target price from $65.00 to $68.00 and maintained a “buy” rating on July 26.
Institutional Investor Activity
Several institutional investors have made adjustments to their holdings in the company. Quadrature Capital Ltd expanded its stake in First American Financial by 56.1% in the last quarter, owning now 8,998 shares valued at $580,000 after acquiring an additional 3,232 shares. American National Bank initiated a new position in the company in the first quarter, valued at approximately $61,000. Wealth Enhancement Advisory Services LLC grew their position by 1.9%, now owning 10,327 shares worth $630,000 after purchasing an additional 193 shares. Tributary Capital Management LLC also increased its stake by 35.2%, owning 7,300 shares valued at $446,000 after acquiring 1,900 shares. Lastly, Vaughan Nelson Investment Management L.P. raised its holdings by 9.0%, now totaling 1,340,491 shares worth $81,836,000. Institutional investors and hedge funds now own 89.05% of the company’s stock.
Stock Performance
Shares of First American Financial opened at $65.57 recently. It has a 50-day simple moving average of $63.86 and a 200-day simple moving average of $58.74, with a market capitalization of $6.80 billion. The stock has a price-to-earnings (P/E) ratio of 31.37 and a beta of 1.29. Over the past year, First American Financial has seen a low of $49.55 and a high of $67.88.
Quarterly Earnings
First American Financial announced its quarterly earnings on July 24, reporting an EPS of $1.27, which surpassed analysts’ expectations of $1.13 by $0.14. The company generated revenues of $1.61 billion during the quarter, not quite reaching the forecast of $1.62 billion. They achieved a net margin of 3.28% and a return on equity of 7.98%. However, their quarterly revenue decreased by 2.1% compared to the same quarter last year when they reported an EPS of $1.35. Analysts predict that First American Financial will post an EPS of 3.89 for the current fiscal year.
Dividends
The firm recently declared a quarterly dividend that was paid on September 27. Stockholders of record on September 20 received a dividend of $0.54 per share, resulting in an annualized dividend of $2.16 and a yield of 3.29%. This is an increase from the previous quarterly dividend of $0.53. Currently, First American Financial’s dividend payout ratio stands at 103.35%.
Company Overview
First American Financial Corporation, through its subsidiaries, offers various financial services. It operates through two main segments: Title Insurance and Services, and Home Warranty. The Title Insurance and Services segment issues insurance policies for residential and commercial properties and provides related products and services on an international scale.
In summary, First American Financial continues to attract attention from analysts and institutional investors alike. While currently rated as a “Moderate Buy,” the company’s performance and potential for future growth remain appealing in today’s market landscape.
