First American Financial (NYSE:FAF) Shares Down 5% – Should You Sell?

First American Financial Corporation (NYSE:FAF) shares fell 5% on Friday . The company traded as low as $72.40 and last traded at $72.6910. 652,575 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 953,786 shares. The stock had previously closed at $76.51.

Analyst Upgrades and Downgrades

FAF has been the subject of several research analyst reports. Barclays raised their target price on First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a research report on Tuesday, July 7th. Benchmark started coverage on shares of First American Financial in a report on Tuesday, July 21st. They set a “buy” rating and a $85.00 target price for the company. Stephens reissued an “overweight” rating and issued a $84.00 price target on shares of First American Financial in a research report on Friday, June 12th. Weiss Ratings reissued a “buy (b)” rating on shares of First American Financial in a report on Monday, July 20th. Finally, Zacks Research cut shares of First American Financial from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $84.60.

First American Financial Stock Down 5.0%

The firm has a market cap of $7.42 billion, a price-to-earnings ratio of 10.09, a P/E/G ratio of 0.68 and a beta of 1.21. The business’s 50-day simple moving average is $72.59 and its two-hundred day simple moving average is $68.20.

First American Financial (NYSE:FAF) last announced its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.28. The company had revenue of $2.11 billion during the quarter, compared to analysts’ expectations of $2.03 billion. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. First American Financial’s revenue was up 15.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.53 EPS. On average, analysts expect that First American Financial Corporation will post 7.11 earnings per share for the current year.

Insider Transactions at First American Financial

In other news, CAO Steven Adams sold 3,253 shares of the business’s stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the transaction, the chief accounting officer owned 10,234 shares of the company’s stock, valued at $767,447.66. The trade was a 24.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 3.50% of the company’s stock.

Institutional Investors Weigh In On First American Financial

Institutional investors have recently modified their holdings of the stock. Duncker Streett & Co. Inc. raised its stake in First American Financial by 616.4% during the 1st quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider’s stock valued at $26,000 after acquiring an additional 376 shares in the last quarter. Global Retirement Partners LLC boosted its position in First American Financial by 1,107.5% during the fourth quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider’s stock worth $30,000 after purchasing an additional 443 shares during the period. Danske Bank A S acquired a new position in shares of First American Financial during the 3rd quarter worth about $45,000. IFP Advisors Inc increased its holdings in shares of First American Financial by 568.8% during the 4th quarter. IFP Advisors Inc now owns 749 shares of the insurance provider’s stock worth $46,000 after purchasing an additional 637 shares during the period. Finally, SHP Wealth Management acquired a new stake in First American Financial during the fourth quarter worth $51,000. Institutional investors and hedge funds own 89.05% of the company’s stock.

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.