First American Financial (NYSE:FAF) Hits New 1-Year High After Analyst Upgrade

Key Points

• First American Financial (NYSE:FAF) hit a new 52-week high after Keefe, Bruyette & Woods raised its price target to $86 from $84 and kept an outperform rating. The stock traded as high as $75.96, up sharply from the prior close of $68.96.
• The company posted strong Q2 results, with earnings of $2.08 per share beating estimates of $1.80 and revenue of $2.11 billion topping expectations. Growth was supported by commercial title strength, higher investment income, and improved average revenue per order.
• Analyst sentiment remains broadly positive, with several firms reiterating or initiating buy-type ratings and a consensus target around $84.60. The stock also pays a quarterly dividend of $0.55 per share, equal to a 2.9% annualized yield.

First American Financial Corporation (NYSE:FAF - Get Free Report) reached a new 52-week high during trading on Saturday after Keefe, Bruyette & Woods raised their price target on the stock from $84.00 to $86.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. First American Financial traded as high as $75.96 and last traded at $75.11, with a volume of 1492332 shares changing hands. The stock had previously closed at $68.96.

Several other equities research analysts also recently commented on FAF. Truist Financial lifted their price objective on shares of First American Financial from $82.00 to $85.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Wall Street Zen downgraded shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Zacks Research lowered First American Financial from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. Stephens reissued an "overweight" rating and set a $84.00 target price on shares of First American Financial in a research note on Friday, June 12th. Finally, Benchmark initiated coverage on First American Financial in a research report on Tuesday. They set a "buy" rating and a $85.00 target price on the stock. Seven analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $84.60.

Insider Transactions at First American Financial

In other news, SVP Lisa W. Cornehl sold 5,823 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $68.63, for a total transaction of $399,632.49. Following the completion of the sale, the senior vice president owned 29,635 shares in the company, valued at $2,033,850.05. This trade represents a 16.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 3.50% of the company's stock.

Trending Headlines about First American Financial

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

• Positive Sentiment: First American Financial reported Q2 earnings of $2.08 per share, beating estimates of $1.80, while revenue came in at $2.11 billion versus expectations of $2.03 billion. The results were driven by commercial title strength, higher investment income, and improved average revenue per order. Article: First American Financial (FAF) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on First American Financial to $86 from $84 and reaffirmed an outperform rating, signaling confidence in further upside for FAF. Article: Benzinga report on price target increase
• Positive Sentiment: Benchmark Co. initiated coverage with a buy rating and a $85 price target, adding to the bullish analyst sentiment around the stock. Article: Benchmark initiates coverage on FAF
• Neutral Sentiment: Investors are also parsing Q2 earnings-call highlights and transcripts, which emphasized record commercial revenue and the company’s operating momentum, but did not add materially new information beyond the earnings release. Article: First American Financial Corp (FAF) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Some research notes on upcoming earnings estimates were published, but they appear to be routine analyst commentary rather than a major new driver for FAF shares. Article: What is Zacks Research's Estimate for FAF Q1 Earnings?

Hedge Funds Weigh In On First American Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FAF. Duncker Streett & Co. Inc. raised its holdings in First American Financial by 616.4% in the first quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider's stock valued at $26,000 after acquiring an additional 376 shares in the last quarter. V Square Quantitative Management LLC acquired a new position in First American Financial during the 4th quarter worth approximately $27,000. Global Retirement Partners LLC increased its position 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 valued at $30,000 after purchasing an additional 443 shares during the last quarter. Danske Bank A S purchased a new stake in shares of First American Financial in the 3rd quarter valued at approximately $45,000. Finally, IFP Advisors Inc raised its holdings in shares of First American Financial by 568.8% in the 4th quarter. IFP Advisors Inc now owns 749 shares of the insurance provider's stock valued at $46,000 after purchasing an additional 637 shares in the last quarter. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial Trading Up 8.9%

The firm has a market capitalization of $7.65 billion, a price-to-earnings ratio of 10.40, a price-to-earnings-growth ratio of 0.67 and a beta of 1.23. The stock's fifty day moving average price is $68.38 and its two-hundred day moving average price is $65.97.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 EPS for the quarter, beating analysts' consensus estimates of $1.80 by $0.28. First American Financial had a return on equity of 13.32% and a net margin of 9.33%.The business had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.03 billion. During the same quarter in the prior year, the business posted $1.53 EPS. The business's revenue for the quarter was up 15.0% on a year-over-year basis. Analysts anticipate that First American Financial Corporation will post 6.74 earnings per share for the current fiscal year.

First American Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were given a dividend of $0.55 per share. The ex-dividend date of this dividend was Monday, June 8th. This represents a $2.20 annualized dividend and a yield of 2.9%. First American Financial's payout ratio is 33.79%.

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.

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