Sep. 3, 2013, 10:57 AM
- KBW's Bose George upgrades title insurers Fidelity National Financial (FNF +3.5%) and First American Financial (FAF +2.6%) to Buy, telling clients his team is changing its valuation approach for a greater focus on longer-term earnings.
- The sector (FNF and FAF control about 2/3 of U.S. title insurance volume) has underperformed this year on concern about slowing refinance volume, but George expects the market to look past the valley and see strong earnings growth in 2015 and beyond as the home purchase market continues its recovery.
- He notes MBA mortgage data - slowing big-time of late - understates purchase activity as it does not track cash sales which happen to a fast-growing segment of total activity.
- The price target for FNF is hiked to $31 from $27, in part as George boosts his 2014 EPS estimate to $1.85 from $1.66 thanks to the acquisition of Lender Processing Services (LPS) - expected to close in Q4.
- FAF's price target is unchanged at $28.
May 28, 2013, 8:09 AM
As expected, Fidelity National Financial (FNF) announces the purchase of Lender Processing Services (LPS) in a 50% cash, 50% stock deal valued at about $2.9B. At Friday's closing prices, this values LPS at $33.25/share. Fidelity expects the purchase to be 11.3% accretive to this year's earnings. FNF +2.7%, LPS +2.4% to $33.79 premarket (PR)| May 28, 2013, 8:09 AM
Jan. 31, 2013, 10:25 AM
Lender Processing Services (LPS +4.4%) settles with the States for $127M for its role in the mortgage servicer foreclosure abuse cases. (PR)| Jan. 31, 2013, 10:25 AM | 1 Comment
Aug. 2, 2012, 5:59 PMLender Processing Services (LPS): Q2 EPS of $0.76 beats by $0.16. Revenue of $533M (+6.7% Y/Y) beats by $22M. Shares +4.2% AH. (PR) | Aug. 2, 2012, 5:59 PM | 1 Comment
Feb. 13, 2012, 4:20 PMLender Processing Services (LPS): Q4 EPS of $0.72 beats by $0.14. Revenue of $533.8M (-13.6% Y/Y) beats by $17M. Shares -2.8% AH. (PR) | Feb. 13, 2012, 4:20 PM
Nov. 17, 2011, 11:15 AM
Lender Processing Services (LPS -3.3%) trades lower after a Nevada grand jury hands down criminal indictments against two of its title officers in connection with allegedly directing and supervising a robo-signing scheme. The indictment claims the two individuals were responsible for overseeing a process in which documents filed in a large number of foreclosure cases were signed without proper legal review.| Nov. 17, 2011, 11:15 AM | 1 Comment
Nov. 17, 2011, 9:00 AM
Aug. 8, 2011, 2:30 PM
Lender Processing Services (LPS -7.3%) gets hit by a double-whammy after Macquarie cuts the stock to underperform in response to S&P's downgrade of the U.S. credit rating. The firm says the mortgage originations market is likely to be "more challenging than previously thought."| Aug. 8, 2011, 2:30 PM
Jun. 17, 2011, 9:08 AM
Lender Processing Services (LPS) -11.2% premarket after sharply lowering Q2 guidance, saying lower default volumes and sluggish activity in the refinancing marketplace have hurt its bottom line. Keefe Bruyette downgrades the shares.| Jun. 17, 2011, 9:08 AM | 1 Comment
May 20, 2011, 10:23 AM
Lender Processing Services (LPS -3.2%) slips in early trading on weakness attributed to a Naked Capitalism post citing class action lawsuit documents in which former LPS employees allege a 30%-78% error rate in borrower mortgage records. "If these allegations are proven to be accurate, this misconduct ought to be criminal," Yves Smith writes.| May 20, 2011, 10:23 AM