Is First American Financial Stock a Buy After Davis Asset Management Added Over 800,00 Shares to Its Position?
Key Points
Davis Asset Management increased its position by 811,642 shares in the third quarter.
The trade represented an approximately 1.82% change in Davis Asset Management's 13F assets under management.
Post-trade holdings totaled 1,100,000 shares valued at $70.66 million.
FAF now accounts for approximately 2.52% of fund AUM, outside the fund’s top five holdings.
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What happened
Davis Asset Management, L.P. reported a significant increase in its stake in First American Financial Corporation (NYSE:FAF) according to a November 14, 2025, SEC filing. The fund acquired 811,642 additional shares during the third quarter, bringing its total holding to 1,100,000 shares, valued at $70.66 million as of September 30, 2025. The estimated position value change was $52.96 million for the quarter.
What else to know
Davis Asset Management, L.P. increased its FAF position, which now represents 2.52% of reported U.S. equity assets, outside the fund’s top five holdings.
Top holdings after the filing:
- NASDAQ: META: $367.19 million (13.07% of AUM)
- NASDAQ: GOOGL: $243.55 million (8.67% of AUM)
- NYSE: WAL: $216.80 million (7.72% of AUM)
- NYSE: STT: $139.21 million (4.96% of AUM)
- NYSE: CB: $127.01 million (4.52% of AUM)
As of November 13, 2025, shares of First American Financial Corporation were priced at $64.01, up 3.23% over the past year, underperforming the S&P 500 by 9.20 percentage points.
First American Financial Corporation’s trailing twelve-month revenue was $7.08 billion (rounded), with net income of $482.30 million and a dividend yield of 3.6%.
The position accounted for 2.52% (rounded) of Davis Asset Management’s $2.81 billion (rounded) in reportable U.S. equity holdings spanning 31 positions.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $7.08 billion |
| Net Income (TTM) | $482.30 million |
| Dividend Yield | 3.6% |
| Price (as of market close 2025-11-13) | $64.01 |
Company Snapshot
- First American Financial Corporation provides title insurance, escrow and closing services, property and casualty insurance, and related risk mitigation products primarily for real estate transactions.
- It generates revenue through underwriting title insurance policies, delivering settlement and escrow services, and offering specialty insurance products to residential and commercial property markets.
- The company serves real estate professionals, mortgage lenders, homebuyers, and property owners across the United States and select international markets.
First American Financial Corporation is a leading provider of title insurance and specialty insurance products, with a significant presence in the U.S. real estate settlement services industry. The company leverages an extensive network and data resources to support secure and efficient property transactions.
Its diversified service offerings and established market position provide a competitive advantage in supporting clients throughout the real estate lifecycle.
Foolish take
Davis Asset Management's purchase of First American Financial stock is noteworthy for a few reasons. The purchase occurred in the third quarter. That's when shares hit a 52-week low of $53.09 in July.
The buy was also a substantial increase in Davis Asset Management's position from 288,358 shares in Q2 to over one milliion shares by the end of Q3. This suggests the investment firm has a bullish outlook towards First American.
The purchase was timely. First American stock rose to a 52-week high of $68.64 in September. In addition, the company announced solid Q3 results with revenue up 41% year over year to $2 billion.
The housing market had been soft, but First American management believes the company is in the early stages of the next real estate upswing. Davis Asset Management's big boost in its position suggests the firm agrees.
If First American is correct about the real estate cycle, now may be a good time to pick up shares.
Glossary
13F assets under management: The total value of U.S. equity securities reported by institutional investment managers on SEC Form 13F.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Position: The amount of a particular security or asset held by an investor or fund.
Top holdings: The largest investments in a fund's portfolio, typically ranked by value.
Escrow services: Third-party management of funds or assets until contractual conditions are met in a transaction.
Title insurance: Insurance protecting property buyers and lenders against losses from defects in property titles.
Risk mitigation products: Financial products designed to reduce or manage potential losses from various risks.
Settlement services: Services managing the finalization of real estate transactions, including document transfer and fund disbursement.
Specialty insurance: Insurance products covering unique or non-standard risks not addressed by typical policies.
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Robert Izquierdo has positions in Alphabet, Chubb, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool recommends Western Alliance Bancorporation. The Motley Fool has a disclosure policy.
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