Research Analysts Set Expectations for FAF Q2 Earnings

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for First American Financial to $2.04 from $2.03, while maintaining a “Hold” rating. Analysts expect full-year earnings of $7.02 per share.
• First American’s latest quarter exceeded expectations, with EPS of $2.08 versus the $1.80 consensus and revenue of $2.11 billion versus $2.03 billion. Revenue increased 15% year over year.
• Analyst sentiment remains generally positive, with seven Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an $84.60 average price target; shares recently opened at $72.36.

First American Financial Corporation (NYSE:FAF - Free Report) - Equities researchers at Zacks Research upped their Q2 2027 earnings estimates for shares of First American Financial in a report issued on Wednesday, August 12th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $2.04 for the quarter, up from their previous estimate of $2.03. Zacks Research has a "Hold" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $7.02 per share. Zacks Research also issued estimates for First American Financial's Q4 2027 earnings at $2.06 EPS, Q1 2028 earnings at $1.16 EPS and Q2 2028 earnings at $2.08 EPS.

First American Financial (NYSE:FAF - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share 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 firm 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 company posted $1.53 earnings per share. The business's revenue was up 15.0% on a year-over-year basis.

Other equities research analysts have also issued research reports about the stock. Truist Financial upped their target price on shares of First American Financial from $82.00 to $85.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Wall Street Zen lowered shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Keefe, Bruyette & Woods boosted their price target on shares of First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a report on Friday, July 24th. Stephens reaffirmed an "overweight" rating and issued a $84.00 price objective on shares of First American Financial in a research report on Friday, June 12th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of First American Financial in a research report on Monday, July 20th. Seven 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 stock has a consensus rating of "Moderate Buy" and a consensus price target of $84.60.

First American Financial Price Performance

Shares of NYSE FAF opened at $72.36 on Thursday. The stock has a market capitalization of $7.39 billion, a P/E ratio of 10.02, a P/E/G ratio of 0.67 and a beta of 1.22. The company has a 50-day moving average price of $70.48 and a 200-day moving average price of $67.26. First American Financial has a 1 year low of $56.20 and a 1 year high of $79.87.

Insider Buying and Selling at First American Financial

In related news, CAO Steven A. Adams sold 3,253 shares of the business's stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $74.99, for a total value of $243,942.47. Following the transaction, the chief accounting officer directly owned 10,234 shares of the company's stock, valued at approximately $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 can be accessed through this hyperlink. Company insiders own 3.50% of the company's stock.

Institutional Trading of First American Financial

Several hedge funds have recently added to or reduced their stakes in FAF. Jones Financial Companies Lllp raised its holdings in shares of First American Financial by 121.3% in the 1st quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider's stock worth $97,000 after purchasing an additional 813 shares during the period. Goldman Sachs Group Inc. grew its holdings in First American Financial by 10.8% during the first quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider's stock valued at $19,233,000 after purchasing an additional 28,666 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in First American Financial by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider's stock worth $27,180,000 after buying an additional 27,600 shares during the last quarter. Jane Street Group LLC increased its position in First American Financial by 182.5% in the first quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider's stock worth $4,435,000 after buying an additional 43,651 shares during the last quarter. Finally, Focus Partners Wealth raised its stake in shares of First American Financial by 11.3% in the first quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider's stock valued at $281,000 after buying an additional 435 shares during the period. Institutional investors own 89.05% of the company's stock.

About First American Financial

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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