DOWLING & PARTN Has Negative Opinion of FAF FY2026 Earnings

Key Points

• DOWLING & PARTN lowered its FY2026 EPS estimate for First American Financial to $6.94 from $7.11, below the $7.09 consensus estimate. The firm projects EPS of $7.15 for FY2027 and $7.10 for FY2028.
• First American Financial reported quarterly EPS of $1.78, missing the $1.85 consensus, while revenue of $2.09 billion was slightly below expectations. The company posted a 9.05% net margin and 13.32% return on equity.
• Despite the earnings miss and shares opening at $65.01, analyst sentiment remains positive: seven analysts rate the stock a Buy and one a Hold, with a consensus “Moderate Buy” rating and an $82 price target. The company also maintains a quarterly dividend of $0.55 per share, yielding approximately 3.4%.

First American Financial Corporation (NYSE:FAF - Free Report) - Equities research analysts at DOWLING & PARTN cut their FY2026 earnings estimates for shares of First American Financial in a research report issued to clients and investors on Tuesday, October 20th. DOWLING & PARTN analyst G. Dunn now anticipates that the insurance provider will post earnings per share of $6.94 for the year, down from their prior forecast of $7.11. The consensus estimate for First American Financial's current full-year earnings is $7.09 per share. DOWLING & PARTN also issued estimates for First American Financial's FY2027 earnings at $7.15 EPS and FY2028 earnings at $7.10 EPS.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The insurance provider reported $1.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.85 by ($0.07). The company had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.10 billion. First American Financial had a net margin of 9.05% and a return on equity of 13.32%. During the same quarter in the previous year, the business earned $1.84 EPS.

A number of other research analysts have also weighed in on FAF. Weiss Ratings reissued a "buy (b)" rating on shares of First American Financial in a report on Friday, October 16th. Barclays reaffirmed an "overweight" rating and set a $75.00 price target on shares of First American Financial in a research note on Friday. Truist Financial decreased their price target on shares of First American Financial from $85.00 to $80.00 and set a "buy" rating on the stock in a research note on Thursday, October 15th. Keefe, Bruyette & Woods lifted their price objective on shares of First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. Finally, Benchmark initiated coverage on shares of First American Financial in a research note on Tuesday, July 21st. They issued a "buy" rating and a $85.00 price objective for the company. Seven investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $82.00.

First American Financial Trading Down 2.2%

NYSE:FAF opened at $65.01 on Friday. The company has a market capitalization of $6.64 billion, a P/E ratio of 9.00, a P/E/G ratio of 0.62 and a beta of 1.24. First American Financial has a 12 month low of $56.20 and a 12 month high of $79.87. The business's 50-day moving average is $68.62 and its 200 day moving average is $68.79.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, October 5th. Stockholders of record on Monday, September 28th were given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 3.4%. The ex-dividend date was Monday, September 28th. First American Financial's dividend payout ratio (DPR) is 33.80%.

Institutional Trading of First American Financial

Several institutional investors and hedge funds have recently modified their holdings of the stock. Sterling Capital Management LLC grew its holdings in First American Financial by 123.6% during the 3rd quarter. Sterling Capital Management LLC now owns 39,467 shares of the insurance provider's stock worth $2,397,000 after acquiring an additional 21,819 shares in the last quarter. Root Financial Partners LLC purchased a new stake in First American Financial in the third quarter valued at about $32,000. Obermeyer Wealth Partners purchased a new position in shares of First American Financial in the 3rd quarter valued at approximately $1,144,000. Vest Financial LLC lifted its stake in shares of First American Financial by 36.0% during the third quarter. Vest Financial LLC now owns 111,713 shares of the insurance provider's stock worth $6,785,000 after buying an additional 29,590 shares during the period. Finally, First Citizens Bank & Trust Co. purchased a new stake in First American Financial during the 3rd quarter valued at about $604,000. Institutional investors own 89.05% of the company's stock.

First American Financial Company Profile

First American Financial Corporation NYSE: FAF is a provider of title insurance, settlement services and financial technology solutions for the real estate and mortgage industries. Through its First American Title operations, the company helps protect property owners, lenders and other parties against title defects and related risks during real estate transactions.

The company's services include title searches and examination, title insurance policies, escrow and closing services, and transaction coordination.

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