First American Financial (FAF) Stock Price, News & Analysis

Company Overview

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. Through a national network of direct operations and independent agents, First American facilitates closings, handles escrow funds and prepares documents required to complete residential and commercial real estate acquisitions.

In addition to its core title insurance business, First American offers a suite of property data and analytics products. These services provide valuation and risk assessment tools, market intelligence and digital solutions to help clients make informed decisions. Its risk mitigation offerings include flood determination, property inspection and other specialized services designed to streamline the transaction process and reduce potential liabilities.

Tracing its roots to a California title insurer founded in 1889, First American has evolved to support a broad range of stakeholders in the real estate finance ecosystem. The company is led by an experienced executive team with expertise in financial services, technology and real estate, reflecting its commitment to innovation and operational excellence in property transactions.

Key Stats

• Today's Range: $65.06 to $66.26
• 50-Day Range: $54.74 to $66.59
• 52-Week Range: $53.09 to $70.92
• Volume: 169,188 shs
• Average Volume: 876,093 shs
• Market Capitalization: $6.75 billion
• P/E Ratio: 36.62
• Dividend Yield: 3.26%
• Price Target: $75.00
• Consensus Rating: Moderate Buy

First American Financial Stock Analysis - MarketRank™

First American Financial scored higher than 95% of companies evaluated by MarketBeat, and ranked 90th out of 927 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

First American Financial has received a consensus rating of Moderate Buy. The company's average rating score is 2.75, and is based on 3 buy ratings, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

First American Financial has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 9.53%

Earnings Growth

Earnings for First American Financial are expected to grow by 9.53% in the coming year, from $5.35 to $5.86 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of First American Financial is 36.23, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 271.84.

Price to Earnings Ratio vs. Sector

The P/E ratio of First American Financial is 36.23, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 230.47.

Price to Book Value per Share Ratio

First American Financial has a P/B Ratio of 1.30. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.22% of the float of First American Financial has been sold short.

Short Interest Ratio / Days to Cover

First American Financial has a short interest ratio ("days to cover") of 1.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in First American Financial has recently decreased by 2.27%, indicating that investor sentiment is improving.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

First American Financial pays a meaningful dividend of 3.27%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

First American Financial has been increasing its dividend for 15 years.

Dividend Coverage

The dividend payout ratio of First American Financial is 119.34%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, First American Financial will have a dividend payout ratio of 36.86% next year. This indicates that First American Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.6 / 5
• Environmental Score: -0.52

Percentage of Shares Shorted

2.22% of the float of First American Financial has been sold short.

Short Interest Ratio / Days to Cover

First American Financial has a short interest ratio ("days to cover") of 1.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in First American Financial has recently decreased by 2.27%, indicating that investor sentiment is improving.

News and Social Media

• Score: 3.1 / 5
• News Sentiment: 1.65

News Sentiment

First American Financial has a news sentiment score of 1.65. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.96 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 10 news articles for First American Financial this week, compared to 8 articles on an average week.

Search Interest

Only 1 people have searched for FAF on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.

MarketBeat Follows

Only 1 people have added First American Financial to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, First American Financial insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $229,705.00 in company stock.

Percentage Held by Insiders

Only 3.70% of the stock of First American Financial is held by insiders.

Percentage Held by Institutions

89.05% of the stock of First American Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

FAF Stock Analysis - Frequently Asked Questions

How have FAF shares performed this year?

First American Financial's stock was trading at $62.44 on January 1st, 2025. Since then, FAF shares have increased by 5.1% and is now trading at $65.6030.

How were First American Financial's earnings last quarter?

First American Financial Corporation (NYSE:FAF) released its quarterly earnings data on Wednesday, July, 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.40 by $0.13. The business's revenue was up 14.2% on a year-over-year basis.
Read the conference call transcript.

How will First American Financial's stock buyback program work?

First American Financial's Board of Directors approved a share repurchase program on Wednesday, July 23rd 2025, which allows the company to buy back $300,000,000 in outstanding shares, according to EventVestor. This means that the company could buy up to 5.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Who are First American Financial's major shareholders?

Top institutional shareholders of First American Financial include Boston Partners (5.53%), Boston Partners (5.53%), Ariel Investments LLC (3.44%) and State Street Corp (3.40%). Insiders that own company stock include Dennis J Gilmore, Mark Edward Seaton, Margaret M Mccarthy, Lisa W Cornehl and Steven A Adams.
View institutional ownership trends.

How do I buy shares of First American Financial?

Shares of FAF stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of First American Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that First American Financial investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Broadcom (AVGO), Exxon Mobil (XOM), Walmart (WMT) and JPMorgan Chase & Co. (JPM).

Company Calendar

• Record date for 6/16 Dividend: 6/09/2025
• Ex-Dividend for 6/16 Dividend: 6/09/2025
• Dividend Payable: 6/16/2025
• Last Earnings: 7/23/2025
• Today: 9/04/2025
• Next Earnings (Estimated): 10/22/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: INS - PROP&CASLTY
• Sub-Industry: Property & Casualty Insurance
• Current Symbol: NYSE:FAF
• CIK: 1472787
• Web: www.firstam.com
• Phone: (714) 250-3000
• Fax: 714-541-6372
• Employees: 19,038
• Year Founded: 1889

Price Target and Rating

• Average Price Target for First American Financial: $75.00
• High Price Target: $79.00
• Low Price Target: $70.00
• Potential Upside/Downside: +15.1%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.75
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.81
• Trailing P/E Ratio: 35.99
• Forward P/E Ratio: 12.17
• P/E Growth: N/A
• Net Income: $131.10 million
• Net Margins: 2.90%
• Pretax Margin: 3.80%
• Return on Equity: 10.41%
• Return on Assets: 3.33%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 0.95
• Quick Ratio: 0.95

Sales & Book Value

• Annual Sales: $6.13 billion
• Price / Sales: 1.08
• Cash Flow: $6.35 per share
• Price / Cash Flow: 10.25
• Book Value: $50.58 per share
• Price / Book: 1.29

Miscellaneous

• Outstanding Shares: 101,800,000
• Free Float: 98,033,000
• Market Cap: $6.63 billion
• Optionable: Optionable
• Beta: 1.27