Cubist Systematic Strategies LLC Makes New Investment in First American Financial Corporation $FAF

Cubist Systematic Strategies LLC bought a new position in First American Financial Corporation (NYSE:FAF) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 237,385 shares of the insurance provider’s stock, valued at approximately $15,580,000. Cubist Systematic Strategies LLC owned 0.23% of First American Financial at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. MAI Capital Management boosted its holdings in shares of First American Financial by 944.4% in the first quarter. MAI Capital Management now owns 6,778 shares of the insurance provider’s stock worth $445,000 after buying an additional 6,129 shares during the period. Magnetar Financial LLC acquired a new position in shares of First American Financial in the first quarter worth about $7,395,000. Carlson Capital L.P. acquired a new position in shares of First American Financial in the first quarter worth about $630,000. Ieq Capital LLC boosted its holdings in shares of First American Financial by 91.1% in the first quarter. Ieq Capital LLC now owns 52,637 shares of the insurance provider’s stock worth $3,455,000 after buying an additional 25,093 shares during the period. Finally, Gabelli Funds LLC boosted its holdings in shares of First American Financial by 11.7% in the first quarter. Gabelli Funds LLC now owns 40,721 shares of the insurance provider’s stock worth $2,673,000 after buying an additional 4,250 shares during the period. 89.05% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have commented on FAF. Keefe, Bruyette & Woods raised their target price on shares of First American Financial from $77.00 to $79.00 and gave the stock an “outperform” rating in a report on Monday, July 28th. Wall Street Zen upgraded shares of First American Financial from a “hold” rating to a “buy” rating in a report on Saturday, August 9th. Finally, Barclays decreased their price target on shares of First American Financial from $72.00 to $70.00 and set an “equal weight” rating for the company in a report on Tuesday, July 8th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $75.00.

First American Financial Stock Performance

FAF stock opened at $66.04 on Monday. The stock has a market cap of $6.72 billion, a P/E ratio of 36.49 and a beta of 1.26. The firm has a 50 day simple moving average of $61.58 and a 200 day simple moving average of $61.18. First American Financial Corporation has a 52 week low of $53.09 and a 52 week high of $70.92.

First American Financial (NYSE:FAF) last issued its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.40 by $0.13. The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The company’s revenue for the quarter was up 14.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.27 earnings per share. Sell-side analysts predict that First American Financial Corporation will post 5.35 EPS for the current year.

First American Financial declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, July 23rd that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the insurance provider to buy up to 5.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In related news, Director Margaret M. Mccarthy sold 3,500 shares of the firm’s stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total transaction of $229,705.00. Following the transaction, the director owned 28,095 shares of the company’s stock, valued at approximately $1,843,874.85. This trade represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 3.70% of the company’s stock.

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.