First American Financial (NYSE:FAF) Reaches New 52-Week High – What’s Next?

First American Financial Corporation (NYSE:FAF)’s share price hit a new 52-week high on Thursday . The company traded as high as $69.00 and last traded at $68.0250, with a volume of 35696 shares changing hands. The stock had previously closed at $67.63.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on FAF shares. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of First American Financial in a research note on Friday, February 13th. Keefe, Bruyette & Woods raised their target price on shares of First American Financial from $79.00 to $81.00 and gave the company an “outperform” rating in a report on Thursday, December 18th. Barclays boosted their price target on shares of First American Financial from $68.00 to $70.00 and gave the stock an “equal weight” rating in a research report on Friday, February 13th. Stephens started coverage on shares of First American Financial in a research note on Friday, November 14th. They set an “equal weight” rating on the stock. Finally, Truist Financial boosted their target price on shares of First American Financial from $76.00 to $82.00 and gave the stock a “buy” rating in a report on Tuesday, February 17th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $77.67.

First American Financial Trading Up 2.7%

The stock has a market capitalization of $7.15 billion, a PE ratio of 11.67, a PEG ratio of 0.71 and a beta of 1.27. The business’s 50 day moving average is $63.83 and its 200 day moving average is $63.95.

First American Financial (NYSE:FAF) last announced its earnings results on Wednesday, February 11th. The insurance provider reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.49 by $0.50. First American Financial had a return on equity of 11.92% and a net margin of 8.34%.The business had revenue of $2 billion during the quarter, compared to analyst estimates of $1.80 billion. During the same quarter in the previous year, the business earned $1.35 earnings per share. The company’s revenue for the quarter was up 21.6% compared to the same quarter last year. As a group, analysts anticipate that First American Financial Corporation will post 5.35 EPS for the current year.

First American Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Monday, March 9th. First American Financial’s dividend payout ratio is currently 36.61%.

Insider Buying and Selling

In other news, Director Parker S. Kennedy purchased 44,841 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were acquired at an average price of $67.85 per share, with a total value of $3,042,461.85. Following the transaction, the director owned 251,552 shares of the company’s stock, valued at $17,067,803.20. This represents a 21.69% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 3.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. ProShare Advisors LLC raised its stake in First American Financial by 3.9% in the second quarter. ProShare Advisors LLC now owns 4,561 shares of the insurance provider’s stock worth $280,000 after buying an additional 172 shares in the last quarter. Naples Global Advisors LLC increased its holdings in shares of First American Financial by 2.4% in the 4th quarter. Naples Global Advisors LLC now owns 7,500 shares of the insurance provider’s stock valued at $461,000 after acquiring an additional 175 shares during the period. Maryland State Retirement & Pension System raised its position in shares of First American Financial by 3.9% in the 3rd quarter. Maryland State Retirement & Pension System now owns 4,850 shares of the insurance provider’s stock worth $312,000 after acquiring an additional 180 shares in the last quarter. Inscription Capital LLC lifted its stake in shares of First American Financial by 2.4% during the 4th quarter. Inscription Capital LLC now owns 7,639 shares of the insurance provider’s stock worth $469,000 after purchasing an additional 181 shares during the last quarter. Finally, KLP Kapitalforvaltning AS boosted its position in First American Financial by 0.9% during the third quarter. KLP Kapitalforvaltning AS now owns 21,500 shares of the insurance provider’s stock valued at $1,381,000 after purchasing an additional 200 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors.

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.