On Dec 23, 2014, shares of Fidelity National Financial, Inc. (FNF) scaled a new 52-week high of $34.85 following a series of positive tidings at the company.
Fidelity National, the title insurance provider, announced a three-year share repurchase program on Nov 6, 2014, effective immediately. Under this program, the board authorized a repurchase of up to 10 million shares. This reflects the strong financial position of the company. Efficient capital deployment through share repurchases enhances shareholder confidence. Moreover, decrease in share count is expected to prove accretive to earnings per share as well.
In Dec 2014, Fidelity National, entered into an acquisition agreement with BPG Holdings. The deal is presently pending regulatory approval. Nevertheless, the contract, on culmination, is expected to help Fidelity National become the largest home warranty company in California, increasing its market share in Texas apart from enhancing its scale of operations in other states. Thus, the deal is in line with the expansion efforts of the company and reinstates investor confidence on the stock for the long term.
Last week, Digital Benefit Advisors, a division of Digital Insurance, unveiled a specialized long-term disability product for physicians engaged in group practices throughout Virginia. Digital Insurance is a wholly-owned subsidiary of Fidelity National. This policy, through the wide range of benefits to physicians, is expected to attract more members for Fidelity National.
Earlier, the company reported third-quarter earnings that failed to meet the Zacks Consensus Estimate but improved year over year. Moreover, Fidelity National’s one-year return of 25.32% was higher than that of S&P 500’s return of 6.08% and of other industry players like Stewart Information Services Corp. (STC), First American Financial Corp. (FAF) and Investors Title Co. (ITIC) who recorded returns of 13.51%, 19.26% and 13.17%, respectively.
Fidelity National currently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment