First American Financial Target of Unusually High Options Trading (NYSE:FAF)

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

Shares of FAF stock opened at $79.54 on Friday. The business’s 50 day moving average is $76.69 and its two-hundred day moving average is $71.18. First American Financial has a twelve month low of $48.69 and a twelve month high of $81.54. The company has a market capitalization of $8.73 billion, a P/E ratio of 7.03 and a beta of 1.21.

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

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

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

Several institutional investors and hedge funds have recently made changes to their positions in FAF. Macquarie Group Ltd. increased its holdings in shares of First American Financial by 76.4% in the 2nd quarter. Macquarie Group Ltd. now owns 1,792,198 shares of the insurance provider’s stock valued at $111,744,000 after purchasing an additional 776,467 shares in the last quarter. Amundi purchased a new position in shares of First American Financial in the 2nd quarter valued at about $27,024,000. State Street Corp increased its holdings in shares of First American Financial by 10.5% in the 2nd quarter. State Street Corp now owns 3,119,592 shares of the insurance provider’s stock valued at $194,507,000 after purchasing an additional 295,759 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of First American Financial by 2.3% in the 2nd quarter. Vanguard Group Inc. now owns 12,048,390 shares of the insurance provider’s stock valued at $751,217,000 after purchasing an additional 270,660 shares in the last quarter. Finally, Vaughan Nelson Investment Management L.P. increased its holdings in shares of First American Financial by 31.0% in the 3rd quarter. Vaughan Nelson Investment Management L.P. now owns 777,450 shares of the insurance provider’s stock valued at $52,128,000 after purchasing an additional 184,045 shares in the last quarter. Institutional investors and hedge funds own 84.89% of the company’s stock.

A number of research firms recently issued reports on FAF. Truist Securities raised their price target on First American Financial from $84.00 to $92.00 in a research note on Thursday. Cantor Fitzgerald dropped their price target on First American Financial from $13.00 to $10.40 and set an “overweight” rating on the stock in a research note on Wednesday, December 15th. Finally, Truist lifted their target price on First American Financial from $84.00 to $92.00 in a research note on Thursday. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat.com, First American Financial currently has a consensus rating of “Buy” and an average price target of $69.93.

About First American Financial

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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