FAF Stock Gets Stronger EPS Estimate from Zacks Research

Key Points

• Zacks Research raised its Q3 2028 EPS estimate for First American Financial to $2.10 from $2.06, while maintaining a “Hold” rating. Analysts’ consensus full-year EPS estimate is $7.12.
• First American previously beat quarterly expectations, reporting $2.08 EPS versus the $1.80 consensus and $2.11 billion in revenue, up 15% year over year. The company also declared a $0.55 quarterly dividend, implying a 3.6% yield.
• Analyst sentiment remains broadly positive, with seven Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $84.60.

First American Financial Corporation (NYSE:FAF - Free Report) - Zacks Research raised their Q3 2028 earnings per share (EPS) estimates for shares of First American Financial in a research note issued on Monday, September 28th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings of $2.10 per share for the quarter, up from their previous estimate of $2.06. Zacks Research has a "Hold" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $7.12 per share.

FAF has been the subject of a number of other research reports. Benchmark started coverage on First American Financial in a report on Tuesday, July 21st. They issued a "buy" rating and a $85.00 price objective for the company. Stephens reaffirmed an "overweight" rating and issued a $84.00 price target on shares of First American Financial in a research note on Friday, June 12th. Keefe, Bruyette & Woods increased their price target on shares of First American Financial from $84.00 to $86.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Weiss Ratings reissued a "buy (b)" rating on shares of First American Financial in a research report on Monday, July 20th. Finally, Barclays boosted their target price on First American Financial from $80.00 to $83.00 and gave the company an "overweight" rating in a research note on Tuesday, July 7th. Seven research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, First American Financial presently has a consensus rating of "Moderate Buy" and an average price target of $84.60.

First American Financial Stock Up 1.3%

FAF stock opened at $61.53 on Friday. First American Financial has a twelve month low of $56.20 and a twelve month high of $79.87. The company has a market cap of $6.28 billion, a P/E ratio of 8.52, a price-to-earnings-growth ratio of 0.56 and a beta of 1.24. The business's fifty day moving average is $72.16 and its 200-day moving average is $68.45.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 EPS for the quarter, topping the consensus estimate of $1.80 by $0.28. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. The company had revenue of $2.11 billion during the quarter, compared to analysts' expectations of $2.03 billion. During the same quarter in the previous year, the company earned $1.53 EPS. First American Financial's revenue was up 15.0% on a year-over-year basis.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Investors of record on Monday, September 28th will be issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Monday, September 28th. First American Financial's dividend payout ratio (DPR) is presently 33.80%.

Insider Buying and Selling

In related news, CAO Steven Adams sold 3,253 shares of the company's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the transaction, the chief accounting officer directly owned 10,234 shares of the company's stock, valued at approximately $767,447.66. This represents a 24.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 3.50% of the company's stock.

Institutional Trading of First American Financial

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of First American Financial in the 2nd quarter valued at about $643,570,000. Davis Asset Management L.P. bought a new stake in shares of First American Financial during the 2nd quarter worth approximately $102,885,000. Norges Bank bought a new stake in shares of First American Financial during the 4th quarter worth approximately $75,011,000. Mendon Capital Advisors Corp acquired a new stake in shares of First American Financial in the 1st quarter valued at approximately $71,680,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of First American Financial by 469.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,284,417 shares of the insurance provider's stock valued at $77,438,000 after buying an additional 1,058,949 shares during the last quarter. 89.05% of the stock is currently owned by institutional investors.

About First American Financial

First American Financial Corporation NYSE: FAF provides title insurance, settlement services and related real estate transaction solutions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in title, liens and other issues affecting ownership or mortgage interests.

The company also offers escrow and closing services, title search and examination, property information, valuation, mortgage subservicing and other technology-enabled solutions for the real estate and mortgage industries.

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