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Home Morning News

First American Financial Corporation (FAF)’s latest price surge of 0.91% could lead to better things

by Adam
June 17, 2020
in Morning News
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First American Financial Corporation (NYSE:FAF) went up by 0.91% during the previous trading session, and it is maintaining the win ahead of Tuesday’s trading session. The share price of the Insurance – Specialty giant went up by $50.94 to trade ended Tuesday trading at $50.48. This is up from the $50.48 price recorded on Monday’s trading session. Thanks to this latest performance, FAF is closer to the higher price 52-week target of $59.00 and further from the lowest price target of $48.00. Its performance from the start of the year has also been negative, with FAF down by -12.65% year-to-date.

First American Financial Corporation (FAF) started the day trading at $52.36 and recorded an intraday high of $52.36. It also recorded an intraday low of $50.42 during Tuesday’s trading session. First American Financial Corporation is a very active stock that recorded a trading volume that is less than -37.22% of the average daily trading volume on Tuesday. The stock’s trading volume on Tuesday was 925547, which is less than -37.22 of the total average daily trading volume of 1.27 million.

First American Financial Corporation (NYSE:FAF) 2020 Performance Impressive
The increase in FAF’s stock price on Tuesday saw its overall performance boost over the past few months. We can quantify the performance of the stock so far this year using a few metrics. The 52-week high price of FAF currently stands at $66.78, which is higher than the current trading price of the stock by 23.72%. However, FAF’s current trading price is -73.5% lower than the 52-week low price of $29.36. In terms of trading volume, First American Financial Corporation currently experienced healthy participation during the last trading session. 925547 shares of First American Financial Corporation were traded on the stock exchange on Tuesday, which is less than -37.22% of the 1.27 million average trading volume of the stock.

The performance of the stock has been positive over the past year. FAF’s performance over the past one year has seen it plunge by -3.38%, while the stock has gone down by -16.15% in the last six months. The quarterly performance of FAF currently stands at 21.34%, and it is up by 14.34% in the last month. The only negative figure was from the weekly performance, which currently reads -4.93%. At the time of writing FAF’s report, the company has a total market cap of $5.53B, making it one of the largest publicly-traded companies in the world.First American Financial Corporation also has over 18412 employees all over the world.

FAF Insider Activities
For First American Financial Corporation, insiders hold 86.60% of all company shares. The insider transactions over the past six months are up by 7.30%. During that period, insiders bought 245,426 shares in 14 transactions. In that same period, insiders sold 152,123 of their shares in 12 transactions. After these transactions, insiders at First American Financial Corporation now hold 3.37M shares, which is over 87.36% of the total company stocks. Institutional investors currently hold a large chunk of the FAF shares, as they control 3.03% of the company’s total stock.

FAF Fundamental Analysis
For First American Financial Corporation, the stock’s diluted earnings per share (EPS) stands at 5.81. In the coming year, analysts expect the EPS to be 3.99. The EPS growth will up over the next five years to 2.70% after surging by 23.80% in the previous five years. In terms of revenue, First American Financial Corporation’s quarterly sales (YOY) is growing at 0.64, which is lower than the average annual revenue of 23.80% over the past half a decade.

The Return on Investment (ROI) on First American Financial Corporation’s stock currently stands at 14.00%, and it has a net profit margin of 10.50%. The operating margin of the company is 14.00%.

FAF Analysts Prediction
In April 20, 2020, several analysts reiterated their positions on the First American Financial Corporation stock and predicted its performance to their investors. The analysts at Stephens believe FAF is still a Equal-Weight and set the price target between $76 and $48.

Three analysts, Barclays, Barclays, and Barclays, all rate the stock as overweight.

At the moment, First American Financial Corporation’s Total Debt to Equity ratio stands at 0.30, and they have a long-term Debt to Equity ratio of 0.30.

FAF Technical Analysis
The Simple Moving Average (SMA) is one of the most powerful technical indicators. The 20-day Simple Moving Average of FAF currently stands at -0.15%, while the SMA50 is 8.34%. The biggest one is the SMA200, which is currently reading -8.87% ahead of Tuesday’s trading session. The Relative Strength Index of this stock is 52.91, while its price to earnings ratio (P/E) is 8.77.

Tags: FAFFAF stockFirst American Financial CorporationNYSE:FAF

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