First American Financial (NYSE:FAF) Shares Down 8.3% Following Weak Earnings

First American Financial Co. (NYSE:FAF)’s share price fell 8.3% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $53.00 and last traded at $53.01. 231,537 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 686,556 shares. The stock had previously closed at $57.78.

The insurance provider reported $0.45 EPS for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.22). First American Financial had a return on equity of 8.20% and a net margin of 3.64%. The business had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the prior year, the firm posted $0.49 earnings per share. The firm’s revenue for the quarter was down 1.5% on a year-over-year basis.

First American Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 8th were issued a $0.53 dividend. The ex-dividend date of this dividend was Thursday, March 7th. This represents a $2.12 dividend on an annualized basis and a yield of 3.91%. First American Financial’s dividend payout ratio is currently 101.44%.

Analyst Ratings Changes

A number of analysts have issued reports on the company. TheStreet downgraded First American Financial from a “b-” rating to a “c+” rating in a research note on Tuesday, March 12th. Deutsche Bank Aktiengesellschaft started coverage on shares of First American Financial in a report on Wednesday, January 10th. They issued a “buy” rating on the stock. Keefe, Bruyette & Woods raised shares of First American Financial from a “market perform” rating to an “outperform” rating and increased their price target for the company from $66.00 to $69.00 in a report on Thursday, March 21st. Finally, Stephens reiterated an “overweight” rating and issued a $72.00 price target on shares of First American Financial in a research report on Thursday. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, First American Financial presently has a consensus rating of “Moderate Buy” and an average price target of $67.75.

Institutional Investors Weigh In On First American Financial

Several hedge funds and other institutional investors have recently made changes to their positions in FAF. Wealth Enhancement Advisory Services LLC grew its holdings in First American Financial by 1.9% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 10,327 shares of the insurance provider’s stock valued at $630,000 after purchasing an additional 193 shares during the last quarter. Treasurer of the State of North Carolina grew its stake in shares of First American Financial by 0.5% during the third quarter. Treasurer of the State of North Carolina now owns 44,007 shares of the insurance provider’s stock valued at $2,486,000 after buying an additional 220 shares during the last quarter. J.P. Morgan Private Wealth Advisors LLC raised its holdings in shares of First American Financial by 3.0% in the third quarter. J.P. Morgan Private Wealth Advisors LLC now owns 7,910 shares of the insurance provider’s stock worth $447,000 after buying an additional 227 shares during the period. Venturi Wealth Management LLC raised its holdings in shares of First American Financial by 82.3% in the first quarter. Venturi Wealth Management LLC now owns 505 shares of the insurance provider’s stock worth $31,000 after buying an additional 228 shares during the period. Finally, State Board of Administration of Florida Retirement System lifted its stake in shares of First American Financial by 0.3% during the 3rd quarter. State Board of Administration of Florida Retirement System now owns 117,044 shares of the insurance provider’s stock worth $6,612,000 after acquiring an additional 308 shares during the last quarter. Hedge funds and other institutional investors own 89.05% of the company’s stock.

First American Financial Stock Performance

The stock has a fifty day moving average of $57.58 and a 200-day moving average of $58.27. The company has a market cap of $5.61 billion, a PE ratio of 25.94 and a beta of 1.28.

About First American Financial

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.