First American Financial Co. (NYSE:FAF) Sees Significant Increase in Short Interest

First American Financial Co. (NYSE:FAF) was the target of a significant increase in short interest in the month of March. As of March 15th, there was short interest totalling 1,770,000 shares, an increase of 48.7% from the February 29th total of 1,190,000 shares. Approximately 1.8% of the shares of the stock are sold short. Based on an average trading volume of 765,800 shares, the days-to-cover ratio is currently 2.3 days.

First American Financial Price Performance

Shares of NYSE:FAF traded up $1.22 during trading hours on Friday, hitting $61.05. 601,016 shares of the company’s stock traded hands, compared to its average volume of 873,377. First American Financial has a 1 year low of $49.55 and a 1 year high of $65.54. The business has a fifty day moving average price of $58.50 and a 200-day moving average price of $58.24. The firm has a market capitalization of $6.29 billion, a P/E ratio of 29.35 and a beta of 1.27.

First American Financial (NYSE:FAF) last announced its earnings results on Thursday, February 8th. The insurance provider reported $0.69 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.75 by ($0.06). First American Financial had a net margin of 3.61% and a return on equity of 8.27%. The business had revenue of $1.43 billion for the quarter, compared to analysts’ expectations of $1.47 billion. During the same quarter last year, the firm earned $1.35 EPS. The firm’s quarterly revenue was down 15.2% on a year-over-year basis. As a group, equities analysts predict that First American Financial will post 4.47 earnings per share for the current year.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 8th were given a dividend of $0.53 per share. The ex-dividend date of this dividend was Thursday, March 7th. This represents a $2.12 annualized dividend and a dividend yield of 3.47%. First American Financial’s dividend payout ratio (DPR) is presently 101.92%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on FAF shares. TheStreet cut First American Financial from a “b-” rating to a “c+” rating in a report on Tuesday, March 12th. Deutsche Bank Aktiengesellschaft assumed coverage on First American Financial in a report on Wednesday, January 10th. They set a “buy” rating on the stock. Keefe, Bruyette & Woods raised First American Financial from a “market perform” rating to an “outperform” rating and lifted their target price for the stock from $66.00 to $69.00 in a report on Thursday, March 21st. Finally, Stephens reaffirmed an “overweight” rating and issued a $73.00 target price on shares of First American Financial in a report on Thursday, February 8th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $68.00.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of FAF. Benjamin F. Edwards & Company Inc. bought a new stake in shares of First American Financial during the fourth quarter valued at approximately $26,000. GAMMA Investing LLC bought a new stake in shares of First American Financial during the fourth quarter valued at approximately $33,000. Point72 Hong Kong Ltd bought a new stake in shares of First American Financial during the second quarter valued at approximately $36,000. PCA Investment Advisory Services Inc. bought a new stake in shares of First American Financial during the second quarter valued at approximately $41,000. Finally, Headlands Technologies LLC bought a new stake in shares of First American Financial during the fourth quarter valued at approximately $44,000. Hedge funds and other institutional investors own 89.05% of the company’s stock.

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.