First American Financial (FAF) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of First American Financial (NYSE:FAF) from a buy rating to a hold rating in a research report report published on Friday.

According to Zacks, “First American Financial Corporation provides financial services through its Title Insurance and Services segment and its Specialty Insurance segment. The Title Insurance and Services segment provides title insurance policies and provides escrow and real estate closing services on residential and commercial property. It also maintains, manages, and provides access to automated title plant records and images; accommodates tax-deferred exchanges of real estate; and provides investment advisory, trust, lending, and deposit services. The Specialty Insurance segment offers property and casualty insurance, including homeowners insurance, as well as provides home warranty policies. This segment markets its property and casualty insurance products through direct distribution channels, including employees and agents, as well as a network of brokers. First American Financial Corporation is based in Santa Ana, California. “

Several other analysts have also recently commented on FAF. Piper Jaffray Companies raised their target price on First American Financial from $63.00 to $65.00 and gave the stock a neutral rating in a research report on Friday, July 27th. Keefe, Bruyette & Woods raised First American Financial from a market perform rating to an outperform rating and set a $39.00 target price for the company in a research report on Monday, July 16th. Finally, ValuEngine cut First American Financial from a hold rating to a sell rating in a research report on Wednesday, September 19th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. First American Financial presently has an average rating of Hold and a consensus price target of $57.50.

Shares of First American Financial stock opened at $51.61 on Friday. The firm has a market capitalization of $5.76 billion, a PE ratio of 18.77, a price-to-earnings-growth ratio of 0.87 and a beta of 0.70. First American Financial has a 12 month low of $49.30 and a 12 month high of $62.71.

First American Financial (NYSE:FAF) last issued its earnings results on Thursday, July 26th. The insurance provider reported $1.37 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.24 by $0.13. The business had revenue of $1.49 billion during the quarter, compared to analysts’ expectations of $1.47 billion. First American Financial had a return on equity of 15.03% and a net margin of 8.19%. First American Financial’s revenue was up 2.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.09 earnings per share. Research analysts expect that First American Financial will post 4.58 EPS for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 17th. Investors of record on Monday, September 10th were given a dividend of $0.42 per share. This is a boost from First American Financial’s previous quarterly dividend of $0.38. The ex-dividend date was Friday, September 7th. This represents a $1.68 dividend on an annualized basis and a yield of 3.26%. First American Financial’s dividend payout ratio (DPR) is presently 61.09%.

In related news, EVP Kenneth D. Degiorgio sold 13,871 shares of First American Financial stock in a transaction on Tuesday, August 21st. The stock was sold at an average price of $57.25, for a total transaction of $794,114.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Matthew F. Wajner sold 4,982 shares of First American Financial stock in a transaction on Tuesday, August 21st. The shares were sold at an average price of $57.29, for a total value of $285,418.78. The disclosure for this sale can be found here. 3.00% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Three Peaks Capital Management LLC acquired a new stake in First American Financial during the first quarter valued at $111,000. Financial Gravity Wealth Inc. acquired a new stake in First American Financial during the first quarter valued at $252,000. Itau Unibanco Holding S.A. acquired a new stake in First American Financial during the second quarter valued at $265,000. HPM Partners LLC acquired a new stake in First American Financial during the second quarter valued at $319,000. Finally, Private Advisor Group LLC bought a new position in First American Financial during the second quarter valued at about $333,000. 84.39% of the stock is owned by hedge funds and other institutional investors.

About First American Financial

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services.

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