Stock Traders Buy Large Volume of Put Options on First American Financial (NYSE:FAF)

First American Financial Co. (NYSE:FAF) was the recipient of some unusual options trading on Thursday. Stock investors bought 2,011 put options on the stock. This represents an increase of approximately 5,486% compared to the average daily volume of 36 put options.

In other First American Financial news, President Kenneth D. Degiorgio sold 10,400 shares of the stock in a transaction dated Monday, October 25th. The stock was sold at an average price of $74.50, for a total transaction of $774,800.00. The sale was disclosed in a filing with the SEC, which is available through this link. Also, President Kenneth D. Degiorgio sold 15,739 shares of the stock in a transaction dated Friday, October 22nd. The stock was sold at an average price of $74.71, for a total value of $1,175,860.69. The disclosure for this sale can be found here. Corporate insiders own 3.20% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Louisiana State Employees Retirement System lifted its stake in First American Financial by 0.7% in the 4th quarter. Louisiana State Employees Retirement System now owns 28,200 shares of the insurance provider’s stock worth $2,206,000 after purchasing an additional 200 shares in the last quarter. Stratos Wealth Partners LTD. purchased a new position in First American Financial in the 4th quarter worth approximately $203,000. Diversified Trust Co purchased a new position in First American Financial in the 4th quarter worth approximately $381,000. State of Alaska Department of Revenue lifted its stake in First American Financial by 117.2% in the 4th quarter. State of Alaska Department of Revenue now owns 79,263 shares of the insurance provider’s stock worth $6,199,000 after purchasing an additional 42,762 shares in the last quarter. Finally, Symmetry Partners LLC purchased a new position in First American Financial in the 4th quarter worth approximately $342,000. 84.89% of the stock is currently owned by institutional investors and hedge funds.

Shares of First American Financial stock opened at $79.54 on Friday. The firm has a market capitalization of $8.73 billion, a PE ratio of 7.03 and a beta of 1.21. First American Financial has a twelve month low of $48.69 and a twelve month high of $81.54. The firm’s 50-day moving average price is $76.69 and its 200 day moving average price is $71.18.

First American Financial (NYSE:FAF) last issued its quarterly earnings results on Wednesday, October 20th. The insurance provider reported $2.15 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.86 by $0.29. First American Financial had a net margin of 14.02% and a return on equity of 17.25%. The firm had revenue of $2.60 billion for the quarter, compared to analyst estimates of $2.04 billion. During the same period last year, the company posted $1.31 EPS. First American Financial’s quarterly revenue was up 35.9% compared to the same quarter last year. On average, equities analysts anticipate that First American Financial will post 7.56 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 15th. Shareholders of record on Wednesday, December 8th were paid a $0.51 dividend. This represents a $2.04 dividend on an annualized basis and a yield of 2.56%. The ex-dividend date was Tuesday, December 7th. First American Financial’s dividend payout ratio (DPR) is 18.04%.

A number of equities research analysts have recently commented on FAF shares. Cantor Fitzgerald dropped their target price on First American Financial from $13.00 to $10.40 and set an “overweight” rating on the stock in a research report on Wednesday, December 15th. Truist raised their target price on First American Financial from $84.00 to $92.00 in a research report on Thursday. Finally, Truist Securities raised their target price on First American Financial from $84.00 to $92.00 in a research report on Thursday. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $69.93.

First American Financial Company Profile

First American Financial Corp. operates as an insurance company. It provides title insurance and settlement services to the real estate and mortgage industries. The company operates its business through the following segments: Title Insurance & Services and Specialty Insurance. The Title Insurance & Services segment provides title insurance, escrow, closing services and similar or related financial services domestically and internationally in connection with residential and commercial real estate transactions.

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