FAF stock: buy or sell?
February 21st, 2020
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments.
Should I buy FAF stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading plan that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, First American stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is First American stock a buy?
Financial institutions and banks publish stock ratings everyday.Unfortunately, we couldn't find any rating for FAF stock for the last month.
FAF stock analysis
First American remained steady -0.03% today to $65.01 after reaching all time highs on Feb 14th.
First American remained stable -0.03% to $65.01 after topping to all time highs on February 14th. From a daily perspective, FAF is in a short term uptrend after plotting its last bottom ($60.32, on February/7) higher than the previous bottom, and its last top ($66.40, on Feb 14th) also over the previous top. Now trading in between its last bottom and last top FAF might consolidate in a plain range, waiting to break out over $66.40 or down under $60.32. On January 22nd FAF price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On Feb/14, FAF hit new all time highs, pushing higher previous ATH of $65.45 recorded on February/13. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After boosting an extraordinary 6.98% in a week last week, First American closed this week at $65.01 and declined an ugly -0.73%.
First American stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record First American marked last week. Since late April 2019 when SMA20w and SMA40w crossed up, FAF price gained $8.37 per share (14.78%). Since last week when FAF stock price broke up the SMA20w line, it gained $4.09 (6.71%).
FAF stock price history
FAF stock went public on June 1st, 2010 with a price of $11.091. Since then, FAF stock grew a 486.20%, with a yearly average of 54.00%. If you had invested right after FAF's IPO a $1,000 in FAF stock in 2010, it would worth $4,862.00 today.
1: Adjusted price after possible price splits or reverse-splits.
FAF stock historical price chart
FAF stock reached all-time highs on Feb 14th with a price of $66.40.
FAF stock price targetNobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not detected any price prediction for First American stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when First American published its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw a tight move of -0.42% to $5,747.84 M USD. Aligned with this, its earnings margin (compared to revenues) stayed steady to 8.26%, that is $474.50 million. To have an updated view of the financial situation of First American, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual First American TTM sales up to March 2019 were $5,754.04 and income was $507.84 M dollars. When comparing this TTM figures with the last reported annuality, we can review First American business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained constant a tight 0.11%. Regarding profit margin, First American remained stable 0.57% to 8.26%
|2013||$4,960 M||-||$186 M3.8%||-|
|2014||$4,678 M||-5.69%||$234 M5.0%||25.53%|
|2015||$5,175 M||10.64%||$288 M5.6%||23.36%|
|2016||$5,576 M||7.74%||$343 M6.2%||19.06%|
|2017||$5,772 M||3.52%||$423 M7.3%||23.34%|
|2018||$5,748 M||-0.42%||$474 M8.3%||12.16%|
|TTM||$5,754 M||0.11%||$508 M8.8%||7.03%|
Quarterly financial resultsFirst American reported $1,303.58 M in revenues for 2019-Q1, a -8.01% less compared to previous quarter. Reported quarter earnings marked $109.58 M with a profit margin of 8.41%. Profit margin grew a 1.94% compared to previous quarter when profit margin was 6.47%. When comparing revenues to same quarter last year, First American sales marked a neutral movement and stayed steady a 0.48%. Looking back to recent quarterly results, First American posted 2 positive quarters in a row.
|2017-Q2||$1,450 M||-||$122 M8.4%||-|
|2017-Q3||$1,520 M||4.83%||$21 M1.4%||-82.51%|
|2017-Q4||$1,481 M||-2.54%||$221 M14.9%||934.27%|
|2018-Q1||$1,297 M||-12.42%||$76 M5.9%||-65.53%|
|2018-Q2||$1,491 M||14.94%||$155 M10.4%||103.52%|
|2018-Q3||$1,542 M||3.42%||$151 M9.8%||-2.36%|
|2018-Q4||$1,417 M||-8.11%||$92 M6.5%||-39.50%|
|2019-Q1||$1,304 M||-8.01%||$110 M8.4%||19.56%|
First American ownershipWhen you are planning to invest in a company, it's always worth to have a look its ownership structure.
First American shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.88% of all shares.
Bearish positions for FAF stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$7.3 B|
|Total shares||112.3 M|
|Float shares||108.8 M|
|- Institutional holdings (%)||86.0%|
|- Insider holdings (%)||2.9%|
|Shares in short selling||0.0%|
|Friday, February 21st, 2020|
|Day range||$64.62 - $65.42|
|Average true range||$1.20|
|50d mov avg||$60.89|
|100d mov avg||$61.00|
|200d mov avg||$58.09|
First American performanceTo measure stock performance is always good to benchmark with competitors or related stocks. We picked as the bechmarking frame for First American stock.