First American Financial Corp (NYSE: FAF)’s stock price has gone decline by -0.56 in comparison to its previous close of 67.59, however, the company has experienced a 6.23% increase in its stock price over the last five trading days. zacks.com reported 2024-10-16 that First American Financial (FAF) doesn’t possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Is It Worth Investing in First American Financial Corp (NYSE: FAF) Right Now?
The price-to-earnings ratio for First American Financial Corp (NYSE: FAF) is above average at 35.95x, Company’s 36-month beta value is 1.31.Analysts have differing opinions 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 1.12% ratio of that floaft. The average trading volume of FAF on October 18, 2024 was 753.39K shares.
FAF’s Market Performance
FAF stock saw an increase of 6.23% in the past week, with a monthly gain of 0.28% and a quarterly increase of 16.64%. The volatility ratio for the week is 1.92%, and the volatility levels for the last 30 days are 1.86% for First American Financial Corp (FAF). The simple moving average for the last 20 days is 3.08% for FAF’s stock, with a simple moving average of 13.95% 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 4.63% 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 -0.99% of loss for the given period.
Volatility was left at 1.86%, however, over the last 30 days, the volatility rate increased by 1.92%, as shares surge +0.75% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +12.98% upper at present.
During the last 5 trading sessions, FAF rose by +6.23%, which changed the moving average for the period of 200-days by +7.55% in comparison to the 20-day moving average, which settled at $65.20. In addition, First American Financial Corp saw 4.30% 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 1.14. 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
In a nutshell, First American Financial Corp (FAF) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
