First American Financial (NYSE:FAF) Cut to Hold at Wall Street Zen

First American Financial (NYSE:FAF) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

Several other equities analysts have also recently commented on the stock. Stephens initiated coverage on shares of First American Financial in a research report on Friday, November 14th. They issued an “equal weight” rating for the company. Keefe, Bruyette & Woods lifted their target price on First American Financial from $79.00 to $81.00 and gave the company an “outperform” rating in a report on Thursday, December 18th. Weiss Ratings restated a “buy (b-)” rating on shares of First American Financial in a report on Friday, December 26th. Truist Financial increased their price target on First American Financial from $76.00 to $82.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Barclays boosted their price objective on 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. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $77.67.

First American Financial Price Performance

Shares of First American Financial stock opened at $67.34 on Friday. The stock has a market capitalization of $6.86 billion, a price-to-earnings ratio of 11.20, a price-to-earnings-growth ratio of 0.69 and a beta of 1.27. The business has a 50-day moving average of $63.43 and a 200 day moving average of $63.77. First American Financial has a 12 month low of $53.09 and a 12 month high of $68.75.

First American Financial (NYSE:FAF) last issued its quarterly earnings results on Wednesday, February 11th. The insurance provider reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.49 by $0.50. The business had revenue of $2 billion for the quarter, compared to analysts’ expectations of $1.80 billion. First American Financial had a net margin of 8.34% and a return on equity of 11.92%. The business’s quarterly revenue was up 21.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.35 earnings per share. Equities research analysts anticipate that First American Financial will post 5.35 earnings per share for the current year.

Insider Activity at First American Financial

In related news, Director Parker S. Kennedy purchased 44,841 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The shares were purchased at an average cost of $67.85 per share, for a total transaction of $3,042,461.85. Following the purchase, the director directly owned 251,552 shares of the company’s stock, valued at $17,067,803.20. The trade was a 21.69% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On First American Financial

Several hedge funds have recently made changes to their positions in the company. Invesco Ltd. lifted its holdings in shares of First American Financial by 11.5% in the 4th quarter. Invesco Ltd. now owns 502,147 shares of the insurance provider’s stock valued at $30,852,000 after purchasing an additional 51,653 shares during the last quarter. Corient Private Wealth LLC lifted its stake in First American Financial by 14.4% in the fourth quarter. Corient Private Wealth LLC now owns 961,528 shares of the insurance provider’s stock valued at $59,076,000 after buying an additional 121,209 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its holdings in shares of First American Financial by 20.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 59,118 shares of the insurance provider’s stock valued at $3,632,000 after acquiring an additional 9,949 shares during the period. EP Wealth Advisors LLC acquired a new stake in shares of First American Financial in the fourth quarter valued at approximately $2,694,000. Finally, Mackenzie Financial Corp grew its position in shares of First American Financial by 20.9% during the fourth quarter. Mackenzie Financial Corp now owns 30,079 shares of the insurance provider’s stock worth $1,863,000 after acquiring an additional 5,191 shares during the last quarter. Hedge funds and other institutional investors own 89.05% of the company’s stock.

About First American Financial

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.