Zacks Research Issues Positive Estimate for FAF Earnings

Key Points

• Zacks Research raised its Q1 2028 EPS forecast for First American Financial to $1.23 from $1.16 and projected Q2 2028 EPS of $2.06, while maintaining a “Hold” rating.
• Analyst sentiment remains broadly positive: seven analysts rate the stock a Buy versus one Hold, producing a consensus “Moderate Buy” rating and an $84.60 price target.
• First American recently exceeded quarterly expectations, reporting $2.08 EPS versus the $1.80 consensus and $2.11 billion in revenue, up 15% year over year; institutional investors own 89.05% of the stock.

First American Financial Corporation (NYSE:FAF - Free Report) - Zacks Research upped their Q1 2028 earnings estimates for First American Financial in a research note issued to investors on Thursday, August 27th. Zacks Research analyst Team now anticipates that the insurance provider will earn $1.23 per share for the quarter, up from their previous forecast of $1.16. Zacks Research has a "Hold" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $7.11 per share. Zacks Research also issued estimates for First American Financial's Q2 2028 earnings at $2.06 EPS.

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

First American Financial Stock Performance

Shares of First American Financial stock opened at $74.50 on Monday. The firm has a fifty day moving average of $72.03 and a two-hundred day moving average of $67.96. The stock has a market capitalization of $7.61 billion, a price-to-earnings ratio of 10.32, a PEG ratio of 0.69 and a beta of 1.22. First American Financial has a 52 week low of $56.20 and a 52 week high of $79.87.

First American Financial (NYSE:FAF - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 firm had revenue of $2.11 billion for the quarter, compared to analysts' expectations of $2.03 billion. During the same period last year, the firm earned $1.53 earnings per share. The business's revenue for the quarter was up 15.0% on a year-over-year basis.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FAF. Jackson Creek Investment Advisors LLC bought a new stake in shares of First American Financial during the fourth quarter worth $1,608,000. Jefferies Financial Group Inc. bought a new stake in First American Financial in the 4th quarter valued at $6,713,000. Manning & Napier Advisors LLC acquired a new position in First American Financial in the 4th quarter worth $63,693,000. Mendon Capital Advisors Corp acquired a new position in First American Financial in the 1st quarter worth $71,680,000. Finally, Gabelli Funds LLC increased its holdings in First American Financial by 81.6% during the 4th quarter. Gabelli Funds LLC now owns 79,362 shares of the insurance provider's stock worth $4,876,000 after purchasing an additional 35,650 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CAO Steven A. Adams sold 3,253 shares of the business'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 owned 10,234 shares of the company's stock, valued at $767,447.66. The trade was a 24.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.50% of the stock is owned by company insiders.

Key Stories Impacting First American Financial

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

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $7.04 from $7.01, FY2027 EPS to $7.39 from $7.32, and FY2028 EPS to $7.43 from $7.35. The revisions suggest improving expectations for First American Financial’s earnings outlook. MarketBeat First American Financial research report
• Positive Sentiment: Quarterly estimates were also increased: Q3 2026 EPS rose to $1.85 from $1.83, Q4 2026 to $1.78 from $1.77, Q1 2027 to $1.28 from $1.27, Q2 2027 to $2.05 from $2.04, Q3 2027 to $1.98 from $1.95, and Q4 2027 to $2.08 from $2.06. While each adjustment was small, the consistency across periods is a constructive signal. MarketBeat First American Financial earnings estimates
• Positive Sentiment: A Zacks article highlighted FAF as a potential dividend stock, potentially reinforcing its appeal to income-oriented investors. The company’s valuation and shareholder-return profile may provide additional support if dividend sustainability remains attractive. Why First American Financial is a Top Dividend Stock
• Neutral Sentiment: Despite the higher forecasts, Zacks maintained its Hold recommendation. The current-year consensus EPS estimate remains $7.11, above Zacks’ $7.04 forecast, indicating that the upgrades have not yet produced a broadly bullish analyst view.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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