Zacks Research Analysts Reduce Earnings Estimates for FAF

Key Points

• Zacks Research cut its Q2 2028 EPS estimate for First American Financial to $2.01 from $2.07 and maintained a Hold rating on the stock.
• Despite the lower forecast, other analysts remain broadly constructive, with First American Financial carrying an average Moderate Buy rating and a consensus price target of $83.25.
• The company recently reported better-than-expected quarterly results, earning $1.33 per share versus $1.06 expected, while revenue rose 16.2% year over year to $1.85 billion.

First American Financial Corporation (NYSE:FAF - Free Report) - Zacks Research cut their Q2 2028 EPS estimates for shares of First American Financial in a report released on Wednesday, June 24th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $2.01 for the quarter, down from their previous forecast of $2.07. Zacks Research has a "Hold" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $6.80 per share.

Other equities analysts have also issued research reports about the company. Weiss Ratings raised First American Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, April 22nd. Keefe, Bruyette & Woods lowered their target price on First American Financial from $87.00 to $84.00 and set an "outperform" rating for the company in a research note on Thursday, June 25th. Wall Street Zen cut First American Financial from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Stephens reiterated an "overweight" rating and set a $84.00 price target on shares of First American Financial in a research report on Friday, June 12th. Finally, Barclays boosted their target price on shares of First American Financial from $72.00 to $80.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Six 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.com, the company presently has an average rating of "Moderate Buy" and an average target price of $83.25.

First American Financial Price Performance

NYSE FAF opened at $70.49 on Thursday. The stock's 50 day simple moving average is $67.75 and its 200 day simple moving average is $65.00. First American Financial has a one year low of $53.09 and a one year high of $71.47. The firm has a market cap of $7.18 billion, a PE ratio of 10.83, a price-to-earnings-growth ratio of 0.66 and a beta of 1.23.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.27. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. The firm had revenue of $1.85 billion for the quarter, compared to analysts' expectations of $1.80 billion. During the same period in the prior year, the firm earned $0.84 earnings per share. The company's quarterly revenue was up 16.2% compared to the same quarter last year.

First American Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were paid a $0.55 dividend. The ex-dividend date was Monday, June 8th. This represents a $2.20 annualized dividend and a yield of 3.1%. First American Financial's payout ratio is presently 33.79%.

Insider Activity at First American Financial

In other First American Financial news, Director Margaret M. Mccarthy sold 6,630 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $70.59, for a total transaction of $468,011.70. Following the completion of the transaction, the director owned 24,024 shares of the company's stock, valued at $1,695,854.16. This represents a 21.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On First American Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Boston Partners grew its holdings in shares of First American Financial by 8.9% in the 3rd quarter. Boston Partners now owns 6,133,594 shares of the insurance provider's stock valued at $393,690,000 after acquiring an additional 500,649 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in First American Financial by 4,485,375.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider's stock valued at $355,508,000 after purchasing an additional 5,786,134 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in First American Financial by 5.6% during the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider's stock valued at $279,529,000 after purchasing an additional 245,279 shares during the last quarter. Capital Research Global Investors grew its stake in First American Financial by 3.3% in the fourth quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider's stock valued at $209,868,000 after purchasing an additional 109,242 shares in the last quarter. Finally, Geode Capital Management LLC grew its stake in First American Financial by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider's stock valued at $110,200,000 after purchasing an additional 19,752 shares in the last quarter. 89.05% of the stock is owned by institutional investors.

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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