The stock price of First American Financial Corp (NYSE: FAF) has surged by 0.82 when compared to previous closing price of 64.34, but the company has seen a -2.76% decline in its stock price over the last five trading sessions. zacks.com reported 2024-09-24 that First American remains well-poised to capitalize on the increased demand for first-time home purchases among millennials.
Is It Worth Investing in First American Financial Corp (NYSE: FAF) Right Now?
First American Financial Corp (NYSE: FAF) has a higher price-to-earnings ratio of 34.69x compared to its average ratio. FAF has 36-month beta value of 1.31. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 1 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The public float for FAF is 98.03M, and currently, short sellers hold a 1.51% ratio of that float. The average trading volume of FAF on September 27, 2024 was 709.88K shares.
FAF’s Market Performance
The stock of First American Financial Corp (FAF) has seen a -2.76% decrease in the past week, with a 2.77% rise in the past month, and a 21.14% gain in the past quarter. The volatility ratio for the week is 1.48%, and the volatility levels for the past 30 days are at 1.65% for FAF. The simple moving average for the last 20 days is -0.31% for FAF stock, with a simple moving average of 10.22% for the last 200 days.
Analysts’ Opinion of FAF
Many brokerage firms have already submitted their reports for FAF stocks, with Keefe Bruyette repeating the rating for FAF by listing it as a “Outperform.” The predicted price for FAF in the upcoming period, according to Keefe Bruyette is $69 based on the research report published on March 21, 2024 of the current year 2024.
Barclays gave a rating of “Equal Weight” to FAF, setting the target price at $53 in the report published on November 15th of the previous year.
FAF Trading at 4.24% from the 50-Day Moving Average
After a stumble in the market that brought FAF to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.43% of loss for the given period.
Volatility was left at 1.65%, however, over the last 30 days, the volatility rate increased by 1.48%, as shares surge +3.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.78% upper at present.
During the last 5 trading sessions, FAF fell by -2.76%, which changed the moving average for the period of 200-days by +4.80% in comparison to the 20-day moving average, which settled at $65.17. In addition, First American Financial Corp saw 0.67% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at FAF starting from Adams Steven a, who sale 1,800 shares at the price of $56.20 back on Nov 15 ’23. After this action, Adams Steven a now owns 7,487 shares of First American Financial Corp, valued at $101,160 using the latest closing price.
Stock Fundamentals for FAF
Current profitability levels for the company are sitting at:
- 0.04 for the present operating margin
- 0.9 for the gross margin
The net margin for First American Financial Corp stands at 0.03. The total capital return value is set at 0.02. Equity return is now at value 4.07, with 1.26 for asset returns.
Based on First American Financial Corp (FAF), the company’s capital structure generated 0.3 points at debt to capital in total, while cash flow to debt ratio is standing at 0.25. The debt to equity ratio resting at 0.42. The interest coverage ratio of the stock is 1.75.
Currently, EBITDA for the company is 462.9 million with net debt to EBITDA at -2.46. When we switch over and look at the enterprise to sales, we see a ratio of 1.1. The receivables turnover for the company is 12.63for trailing twelve months and the total asset turnover is 0.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.75.
Conclusion
To put it simply, First American Financial Corp (FAF) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
