Principal Financial Group Inc. Reduces Its Holdings by 1,892 Shares in First American Financial Co. (NYSE:FAF)

February 27, 2025 12:29 AM PST | By Team Kalkine Media

Principal Financial Group Inc. Reduces Its Holdings by 1,892 Shares in First American Financial Co. (NYSE:FAF) — Image source: Shutterstock

Analyst Ratings and Recent Transactions

Analysts have varied in their outlooks on FAF, with several reports influencing investor perspectives. Stephens upgraded its price objective to $78.00, awarding an "overweight" rating. Similarly, Keefe, Bruyette & Woods elevated their target to $75.00, conferring a "market perform" status. Current consensus positions FAF with a "Moderate Buy" rating and an average target price of $74.50.

Significant insider activity includes the sale of 111,971 shares by Director Dennis J. Gilmore at an average price of $63.60, alongside CFO Mark Edward Seaton’s sale of 12,679 shares at $64.28. These transactions reflect a strategic reduction in their equity positions, while insiders maintain a 3.70% stake in the company.

Performance Metrics and Dividend Announcement

Opening at $64.63 on Thursday, FAF's stock sustains a 50-day moving average of $62.52. The company has achieved a PE ratio of 51.70 with a market capitalization of $6.66 billion. Its trading range spans from a low of $51.60 to a high of $70.92 over the past twelve months.

During its quarterly earnings report, FAF posted earnings of $1.35 per share, outperforming consensus expectations by $0.22. With a projected EPS of 5.35 for the fiscal year, the company demonstrates robust operational momentum. Furthermore, FAF announced a quarterly dividend of $0.54 per share, positioning the annual yield at 3.34%, with a payout ratio standing at a notable 172.80%.

Business Segments and Future Outlook

First American Financial Corp. operates mainly through two segments: Title Insurance and Services, and Home Warranty. The Title Insurance segment provides comprehensive coverage and related services for residential and commercial properties, with a strong international presence. With analysts keeping a keen eye on FAF's trajectory, its adaptability in the evolving financial landscape garners significant investor interest.

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