First American Financial (NYSE:FAF) Releases Earnings Results, Beats Estimates By $0.28 EPS

First American Financial (NYSE:FAF) posted its earnings results on Wednesday. The insurance provider reported $2.08 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.28, FiscalAI reports. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. The company had revenue of $2.11 billion during the quarter, compared to analysts’ expectations of $2.03 billion.

First American Financial Stock Performance

FAF stock traded down $1.22 during midday trading on Wednesday, reaching $70.43. 880,675 shares of the company traded hands, compared to its average volume of 1,014,584. First American Financial has a 52-week low of $56.20 and a 52-week high of $73.50. The business has a 50 day moving average of $68.11 and a 200-day moving average of $65.79. The firm has a market capitalization of $7.18 billion, a price-to-earnings ratio of 10.82, a P/E/G ratio of 0.70 and a beta of 1.23.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Monday, June 8th. First American Financial’s payout ratio is presently 33.79%.

Key First American Financial News

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

• Positive Sentiment: Zacks Research raised its estimates for several future periods, including Q2 2027 to $2.03 EPS and Q4 2027 to $1.92 EPS, while also nudging Q2 2028 higher to $2.03 EPS. This suggests improving longer-term earnings expectations for First American Financial. First American Financial stock page
• Neutral Sentiment: The analyst firm maintained a Hold rating, signaling no major change in its overall view despite the estimate revisions. First American Financial stock page
• Neutral Sentiment: First American Financial is approaching its Q2 earnings update, and investors are watching closely for confirmation that recent operating trends support the current full-year consensus of about $6.74-$6.75 EPS. What to expect from First American Financial’s (FAF) Q2 earnings
• Negative Sentiment: Zacks also trimmed some near-term estimates, including FY2026 to $6.64 EPS from $6.72, Q3 2026 to $1.77 from $1.83, Q4 2026 to $1.76 from $1.78, Q1 2028 to $1.20 from $1.29, and FY2028 to $7.27 from $7.34. These reductions may be pressuring the shares. First American Financial stock page

Analyst Ratings Changes

A number of brokerages have recently weighed in on FAF. Wall Street Zen lowered First American Financial from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Benchmark assumed coverage on First American Financial in a research report on Monday. They issued a “buy” rating and a $85.00 target price on the stock. Truist Financial raised their price target on First American Financial from $82.00 to $85.00 and gave the company a “buy” rating in a report on Friday, April 24th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of First American Financial in a research note on Monday. Finally, Barclays upped their price objective on First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, First American Financial presently has an average rating of “Moderate Buy” and an average target price of $84.20.

Insider Buying and Selling

In other news, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial 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 transaction, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Margaret M. Mccarthy sold 6,630 shares of the business’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $70.59, for a total value of $468,011.70. Following the transaction, 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 position. Additional details regarding this sale are available in the official SEC disclosure. 3.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of FAF. Global Retirement Partners LLC lifted its holdings in shares of First American Financial by 1,107.5% in the 4th quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider’s stock worth $30,000 after acquiring an additional 443 shares during the last quarter. Danske Bank A S purchased a new stake in First American Financial in the 3rd quarter worth about $45,000. Advisory Services Network LLC bought a new stake in First American Financial in the third quarter worth about $52,000. EverSource Wealth Advisors LLC lifted its stake in First American Financial by 189.5% in the second quarter. EverSource Wealth Advisors LLC now owns 912 shares of the insurance provider’s stock worth $56,000 after purchasing an additional 597 shares during the last quarter. Finally, UMB Bank n.a. lifted its stake in First American Financial by 85.0% in the fourth quarter. UMB Bank n.a. now owns 1,304 shares of the insurance provider’s stock worth $80,000 after purchasing an additional 599 shares during the last quarter. Institutional investors own 89.05% of the company’s stock.

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.