Keefe Bruyette Just Upgraded First American Financial Corp (FAF) Stock—What Does This Mean for Investors? – BOVNews (2024)

• Samuel Moore
• September 3, 2024
• Companies

Keefe Bruyette has recently raised First American Financial Corp (FAF) stock to Outperform rating, as announced on March 21, 2024, according to Finviz. Earlier, on January 10, 2024, Deutsche Bank had initiated the stock to Buy. Barclays also initiated Equal Weight rating with a price target of $53. Additionally, BTIG Research resumed Neutral rating on July 18, 2023. Stephens analysts, in their report published on February 10, 2023, also raised their rating and set a price target of $65 for First American Financial Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

First American Financial Corp (FAF) Stock Trading Recap

On Friday, First American Financial Corp (FAF) stock saw a modest uptick, ending the day at $63.8 which represents a slight increase of $0.58 or 0.92% from the prior close of $63.22. The stock opened at $63.36 and touched a low of $63.3 during the day, reaching a high of $63.95. The volume of shares traded was 0.76 million exceeding the average volume of 0.63 million.

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FAF Stock Performance and Moving Averages

In recent trading, First American Financial Corp (FAF) stock price has shown some volatility, fluctuating -0.48% over the last five trades and 5.87% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 8.89%, and it has gained 14.79% in the previous three months. Currently, FAF is trading at 3.62%, 9.56%, and 9.54% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, FAF, a Financial sector stock, is trading -2.66% below its 52-week high but remains 28.76% above its 52-week low. The Average True Range (ATR) (14 days) of 1.12 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

First American Financial Corp’s Profitability and Valuation Ratios

First American Financial Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 2.43% and a profit margin of 3.42%, with a gross margin of 8.89%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, First American Financial Corp’s market capitalization stands at $6.56 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 34.12, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 13.02. Additionally, the Price-to-Sales Ratio is 1.15, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.37, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 4.73% of First American Financial Corp (FAF)’s shares, while financial institutions hold 87.61%.

Notable insider trades include Adams Steven a, VP & Chief Accounting Officer at First American Financial Corp (FAF), who sold 1800 shares on Nov 15 ’23, at $56.2 each, totaling $0.10 million.

• TagsFAF, FAF stock, First American Financial Corp

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