Brokers Set Expectations for FAF FY2026 Earnings

First American Financial Corporation (NYSE:FAF) – Analysts at DOWLING & PARTN issued their FY2026 earnings per share (EPS) estimates for shares of First American Financial in a research note issued on Wednesday, May 20th. DOWLING & PARTN analyst G. Dunn expects that the insurance provider will post earnings per share of $6.70 for the year. The consensus estimate for First American Financial’s current full-year earnings is $6.83 per share. DOWLING & PARTN also issued estimates for First American Financial’s FY2027 earnings at $7.00 EPS and FY2028 earnings at $7.20 EPS.

Several other research firms have also issued reports on FAF. Stephens raised their price objective on First American Financial from $81.00 to $84.00 and gave the company an “overweight” rating in a research note on Monday, April 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of First American Financial in a research note on Friday, February 13th. Barclays raised their price objective on First American Financial from $72.00 to $80.00 and gave the company an “overweight” rating in a research note on Friday, April 24th. Wall Street Zen lowered First American Financial from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Zacks Research upgraded First American Financial from a “hold” rating to a “strong-buy” rating in a report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating and six have issued a Buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $82.50.

First American Financial Price Performance

NYSE:FAF opened at $67.61 on Thursday. The firm has a market capitalization of $6.89 billion, a price-to-earnings ratio of 10.38, a PEG ratio of 0.65 and a beta of 1.28. First American Financial has a 1 year low of $53.09 and a 1 year high of $71.47. The business has a 50 day simple moving average of $64.91 and a 200-day simple moving average of $64.50.

First American Financial (NYSE:FAF) last posted its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.27. The business had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.80 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.The company’s revenue for the quarter was up 16.2% on a year-over-year basis. During the same period last year, the company earned $0.84 EPS.

Institutional Investors Weigh In On First American Financial

Hedge funds and other institutional investors have recently modified their holdings of the business. Jones Financial Companies Lllp increased its holdings in First American Financial by 121.3% during the 1st quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider’s stock worth $97,000 after purchasing an additional 813 shares during the period. Goldman Sachs Group Inc. increased its holdings in First American Financial by 10.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider’s stock worth $19,233,000 after purchasing an additional 28,666 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in First American Financial by 7.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider’s stock worth $27,180,000 after purchasing an additional 27,600 shares during the period. Jane Street Group LLC increased its holdings in First American Financial by 182.5% during the 1st quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider’s stock worth $4,435,000 after purchasing an additional 43,651 shares during the period. Finally, Focus Partners Wealth increased its holdings in First American Financial by 11.3% during the 1st quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider’s stock worth $281,000 after purchasing an additional 435 shares during the period. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at First American Financial

In other news, Director Margaret M. Mccarthy sold 6,630 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $70.59, for a total value of $468,011.70. Following the sale, the director directly owned 24,024 shares in the company, valued at approximately $1,695,854.16. This represents a 21.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Lisa W. Cornehl sold 5,823 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total value of $399,632.49. Following the completion of the sale, the senior vice president owned 29,635 shares in the company, valued at approximately $2,033,850.05. The trade was a 16.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 3.50% of the company’s stock.

First American Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Monday, June 8th. First American Financial’s dividend payout ratio is presently 33.79%.

Key Stories Impacting First American Financial

Here are the key news stories impacting First American Financial this week:

• Positive Sentiment: Zacks Research increased its earnings outlook for First American Financial across several quarters and full-year periods, signaling stronger expected profitability.
• Positive Sentiment: The stock was also included on Zacks’ Strong Buy value and income stock lists, which may reinforce investor interest in FAF as a quality, dividend-oriented name. Best Value Stocks to Buy for May 27th
• Positive Sentiment: Zacks’ article questioning whether investors are undervaluing FAF adds to the bullish narrative by implying the shares may still have room to rerate higher. Are Investors Undervaluing First American Financial Right Now?

First American Financial Company Profile

First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.

The company’s title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.