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

First American Financial Co. (NYSE:FAF)’s stock price was down 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. Approximately 231,537 shares were traded during trading, a decline of 66% from the average daily volume of 686,556 shares. The stock had previously closed at $57.78.

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

First American Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 15th. Investors of record on Friday, March 8th were paid a dividend of $0.53 per share. The ex-dividend date was Thursday, March 7th. This represents a $2.12 annualized dividend and a yield of 3.99%. First American Financial’s payout ratio is 101.92%.

Wall Street Analysts Forecast Growth

FAF has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft initiated coverage on First American Financial in a research note on Wednesday, January 10th. They set a “buy” rating for the company. Keefe, Bruyette & Woods upgraded First American Financial from a “market perform” rating to an “outperform” rating and increased their target price for the company from $66.00 to $69.00 in a research note on Thursday, March 21st. TheStreet downgraded First American Financial from a “b-” rating to a “c+” rating in a research note on Tuesday, March 12th. Finally, Stephens restated an “overweight” rating and set a $73.00 target price on shares of First American Financial in a research note on Thursday, February 8th. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $68.00.

Hedge Funds Weigh In On First American Financial

Hedge funds have recently modified their holdings of the stock. Bar Harbor Wealth Management acquired a new position in shares of First American Financial in the 4th quarter worth approximately $2,673,000. Neo Ivy Capital Management raised its holdings in shares of First American Financial by 119.2% in the 3rd quarter. Neo Ivy Capital Management now owns 56,392 shares of the insurance provider’s stock worth $3,186,000 after buying an additional 30,664 shares in the last quarter. Duality Advisers LP acquired a new position in shares of First American Financial in the 4th quarter worth approximately $1,563,000. Qube Research & Technologies Ltd acquired a new position in shares of First American Financial in the 3rd quarter worth approximately $3,988,000. Finally, Boston Partners raised its holdings in shares of First American Financial by 17.6% in the 3rd quarter. Boston Partners now owns 3,169,320 shares of the insurance provider’s stock worth $178,994,000 after buying an additional 473,961 shares in the last quarter. 89.05% of the stock is owned by institutional investors and hedge funds.

First American Financial Trading Down 8.1 %

The stock has a fifty day moving average price of $57.72 and a 200-day moving average price of $58.30. The firm has a market capitalization of $5.50 billion, a price-to-earnings ratio of 25.67 and a beta of 1.28.

First American Financial Company Profile

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.