First American Financial Co. (NYSE:FAF) Sees Large Growth in Short Interest

First American Financial Co. (NYSE:FAF) was the target of a large increase in short interest during the month of December. As of December 15th, there was short interest totalling 1,550,000 shares, an increase of 24.0% from the November 30th total of 1,250,000 shares. Currently, 1.6% of the company’s shares are sold short. Based on an average trading volume of 660,000 shares, the days-to-cover ratio is presently 2.3 days.

First American Financial Stock Performance

Shares of FAF traded up $0.36 during midday trading on Tuesday, hitting $62.46. 36,844 shares of the company traded hands, compared to its average volume of 657,887. First American Financial has a 52 week low of $51.60 and a 52 week high of $70.92. The firm has a 50 day moving average of $65.32 and a 200-day moving average of $62.39. The stock has a market cap of $6.43 billion, a price-to-earnings ratio of 70.18 and a beta of 1.30.

First American Financial (NYSE:FAF) last posted its earnings results on Wednesday, October 23rd. The insurance provider reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.15 by $0.19. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.66 billion. First American Financial had a net margin of 1.58% and a return on equity of 7.95%. The business’s quarterly revenue was down 5.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.22 EPS. Sell-side analysts predict that First American Financial will post 4.07 earnings per share for the current fiscal year.

First American Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Monday, December 9th were issued a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a yield of 3.46%. The ex-dividend date was Monday, December 9th. First American Financial’s payout ratio is currently 242.70%.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Truist Financial raised their price target on First American Financial from $68.00 to $73.00 and gave the stock a “buy” rating in a research note on Friday, October 25th. Stephens upped their price target on First American Financial from $66.00 to $73.00 and gave the stock an “overweight” rating in a research note on Friday, October 25th. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $80.00 price target on shares of First American Financial in a research report on Tuesday, December 10th. Finally, Barclays upped their target price on shares of First American Financial from $70.00 to $72.00 and gave the company an “equal weight” rating in a research note on Friday, October 25th. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $74.50.

Institutional Trading of First American Financial

Several institutional investors and hedge funds have recently made changes to their positions in the business. Venturi Wealth Management LLC raised its holdings in shares of First American Financial by 132.3% in the 3rd quarter. Venturi Wealth Management LLC now owns 625 shares of the insurance provider’s stock valued at $41,000 after purchasing an additional 356 shares in the last quarter. Ashton Thomas Private Wealth LLC purchased a new position in shares of First American Financial in the 2nd quarter valued at approximately $47,000. Quarry LP raised its holdings in shares of First American Financial by 340.8% in the second quarter. Quarry LP now owns 864 shares of the insurance provider’s stock worth $47,000 after buying an additional 668 shares during the last quarter. Blue Trust Inc. lifted its position in First American Financial by 214.2% during the 3rd quarter. Blue Trust Inc. now owns 1,021 shares of the insurance provider’s stock worth $67,000 after acquiring an additional 696 shares during the period. Finally, Sunbelt Securities Inc. acquired a new stake in shares of First American Financial during the third quarter worth about $75,000. 89.05% of the stock is currently owned by institutional investors.

First American Financial Company Profile

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.