First American Financial Corporation (NYSE:FAF) Sees Significant Growth in Short Interest

First American Financial Corporation (NYSE:FAF) saw a significant increase in short interest in the month of January. As of January 30th, there was short interest totaling 3,231,362 shares, an increase of 21.8% from the January 15th total of 2,653,192 shares. Based on an average trading volume of 1,211,772 shares, the short-interest ratio is currently 2.7 days. Currently, 3.3% of the shares of the company are short sold. Currently, 3.3% of the shares of the company are short sold. Based on an average trading volume of 1,211,772 shares, the short-interest ratio is currently 2.7 days.

Wall Street Analyst Weigh In

A number of research analysts have commented on FAF shares. Keefe, Bruyette & Woods upped their price objective on First American Financial from $79.00 to $81.00 and gave the company an “outperform” rating in a report on Thursday, December 18th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of First American Financial in a research note on Friday, February 13th. Barclays lifted their price objective on shares of First American Financial from $68.00 to $70.00 and gave the stock an “equal weight” rating in a research note on Friday, February 13th. Wall Street Zen upgraded shares of First American Financial from a “hold” rating to a “buy” rating in a research report on Sunday, December 14th. Finally, Stephens initiated coverage on shares of First American Financial in a report on Friday, November 14th. They set an “equal weight” rating on the stock. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, First American Financial currently has a consensus rating of “Moderate Buy” and a consensus target price of $77.67.

Insider Activity at First American Financial

In other news, Director Parker S. Kennedy bought 44,841 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The shares were bought at an average price of $67.85 per share, with a total value of $3,042,461.85. Following the completion of the transaction, the director owned 251,552 shares of the company’s stock, valued at $17,067,803.20. This trade represents a 21.69% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 3.70% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Jones Financial Companies Lllp grew its holdings in shares of First American Financial by 121.3% during the 1st quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider’s stock valued at $97,000 after purchasing an additional 813 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in First American Financial by 10.8% in the first quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider’s stock valued at $19,233,000 after buying an additional 28,666 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of First American Financial by 7.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider’s stock worth $27,180,000 after buying an additional 27,600 shares during the last quarter. Jane Street Group LLC increased its holdings in shares of First American Financial by 182.5% during the first quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider’s stock worth $4,435,000 after buying an additional 43,651 shares in the last quarter. Finally, Focus Partners Wealth increased its holdings in shares of First American Financial by 11.3% during the first quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider’s stock worth $281,000 after buying an additional 435 shares in the last quarter. Institutional investors own 89.05% of the company’s stock.

First American Financial Trading Down 2.7%

NYSE FAF opened at $66.16 on Thursday. The firm’s 50 day simple moving average is $63.32 and its 200 day simple moving average is $63.71. The firm has a market capitalization of $6.74 billion, a price-to-earnings ratio of 11.01, a P/E/G ratio of 0.72 and a beta of 1.27. First American Financial has a 1 year low of $53.09 and a 1 year high of $68.75.

First American Financial (NYSE:FAF) last announced its quarterly earnings data on Wednesday, February 11th. The insurance provider reported $1.99 EPS for the quarter, beating the consensus estimate of $1.49 by $0.50. The business had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.80 billion. First American Financial had a net margin of 8.34% and a return on equity of 11.93%. The company’s revenue was up 21.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.35 earnings per share. On average, equities research analysts forecast that First American Financial will post 5.35 earnings per share for the current year.

First American Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 9th will be paid a $0.55 dividend. The ex-dividend date of this dividend is Monday, March 9th. This represents a $2.20 annualized dividend and a yield of 3.3%. First American Financial’s dividend payout ratio (DPR) is 36.61%.

First American Financial News Summary

Here are the key news stories impacting First American Financial this week:

• Positive Sentiment: Director insider purchases — Parker S. Kennedy bought a sizable stake this week (multiple purchases totaling roughly 59,841 shares, ~ $4M at ~ $67/share), increasing his ownership and signaling management confidence. First American Financial director buys $4m in FAF stock SEC Filing: Insider Ownership
• Positive Sentiment: Analyst upgrade/price-target raise — Truist raised its price target to $82 and reiterated a Buy rating, implying meaningful upside vs. recent levels; analyst backing can attract buying from institutional investors. FAF price target raised by Truist
• Positive Sentiment: Positive thematic coverage — recent Zacks and MSN pieces profile FAF as a long-term value play (pointing to attractive valuation, solid recent earnings and margin/revenue improvements), which can support longer-horizon demand. Why First American Financial (FAF) is a Top Value Stock for the Long-Term — Zacks Why First American Financial (FAF) is a top value stock for the long term — MSN
• Neutral Sentiment: Near-term price action — despite fundamentally positive items above, shares are trading down intraday; that divergence suggests short-term flows (profit-taking, broader market weakness or sector rotation) are outweighing headline-driven buying today.

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.