First American Financial (NYSE:FAF) Releases Earnings Results, Beats Estimates By $0.50 EPS

First American Financial (NYSE:FAF) posted its quarterly earnings results on Wednesday. The insurance provider reported $1.99 earnings per share for the quarter, beating the consensus estimate of $1.49 by $0.50, FiscalAI reports. First American Financial had a return on equity of 11.01% and a net margin of 6.80%.The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $1.80 billion. During the same period in the previous year, the firm earned $1.35 earnings per share. First American Financial’s quarterly revenue was up 21.6% on a year-over-year basis.

First American Financial Trading Up 3.9%

NYSE FAF traded up $2.52 during trading on Thursday, hitting $66.86. 274,114 shares of the company traded hands, compared to its average volume of 1,014,478. First American Financial has a 12 month low of $53.09 and a 12 month high of $68.75. The business has a fifty day simple moving average of $62.97 and a 200 day simple moving average of $63.49. The company has a market capitalization of $6.81 billion, a P/E ratio of 14.47, a PEG ratio of 0.71 and a beta of 1.27.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Monday, March 9th. First American Financial’s dividend payout ratio is presently 47.31%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Boston Partners boosted its position in First American Financial by 8.9% during the third quarter. Boston Partners now owns 6,133,594 shares of the insurance provider’s stock worth $393,690,000 after purchasing an additional 500,649 shares during the period. Two Sigma Investments LP boosted its holdings in shares of First American Financial by 163.5% during the 3rd quarter. Two Sigma Investments LP now owns 467,823 shares of the insurance provider’s stock worth $30,053,000 after buying an additional 290,310 shares during the period. AQR Capital Management LLC grew its stake in First American Financial by 72.5% in the 3rd quarter. AQR Capital Management LLC now owns 552,123 shares of the insurance provider’s stock valued at $35,468,000 after buying an additional 232,066 shares during the last quarter. UBS Group AG grew its stake in First American Financial by 25.3% in the 3rd quarter. UBS Group AG now owns 767,875 shares of the insurance provider’s stock valued at $49,328,000 after buying an additional 154,956 shares during the last quarter. Finally, FJ Capital Management LLC bought a new position in First American Financial in the 3rd quarter worth $7,625,000. 89.05% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Truist Financial boosted their price objective on shares of First American Financial from $73.00 to $76.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Keefe, Bruyette & Woods lifted their target price on shares of First American Financial from $79.00 to $81.00 and gave the company an “outperform” rating in a research note on Thursday, December 18th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of First American Financial in a research note on Friday, December 26th. Stephens began coverage on First American Financial in a report on Friday, November 14th. They set an “equal weight” rating for the company. Finally, Barclays reduced their price objective on First American Financial from $71.00 to $68.00 and set an “equal weight” rating for the company in a research report on Tuesday, January 6th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $75.75.

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.