Zacks Research Brokers Boost Earnings Estimates for FAF

Key Points

• Zacks Research raised its Q2 2026 earnings estimate for First American Financial to $1.77 per share, up from a previous estimate of $1.72, and also provided projections for subsequent quarters and fiscal years 2026 and 2027.
• First American Financial reported earnings of $1.53 per share for Q2, exceeding analyst expectations by $0.13 and showing a 14.2% year-over-year revenue increase to $1.84 billion.
• The firm declared a quarterly dividend of $0.55 per share, reflecting an increase from the previous quarterly dividend of $0.54 and providing a 3.7% yield for investors.

First American Financial Corporation (NYSE:FAF - Free Report) - Investment analysts at Zacks Research increased their Q2 2026 earnings per share estimates for First American Financial in a report released on Monday, October 13th. Zacks Research analyst Team now expects that the insurance provider will earn $1.77 per share for the quarter, up from their previous estimate of $1.72. The consensus estimate for First American Financial's current full-year earnings is $5.35 per share. Zacks Research also issued estimates for First American Financial's Q3 2026 earnings at $1.52 EPS, FY2026 earnings at $5.98 EPS, Q2 2027 earnings at $1.78 EPS, Q3 2027 earnings at $1.52 EPS and FY2027 earnings at $5.78 EPS.

First American Financial (NYSE:FAF - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.40 by $0.13. The company had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.78 billion. First American Financial had a return on equity of 10.41% and a net margin of 2.90%.The business's quarterly revenue was up 14.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.27 earnings per share.

Several other research firms have also recently commented on FAF. Barclays raised their target price on First American Financial from $70.00 to $71.00 and gave the stock a "cautious" rating in a research note on Monday, October 6th. Wall Street Zen raised First American Financial from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Keefe, Bruyette & Woods raised their target price on First American Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of First American Financial in a report on Wednesday, October 8th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, First American Financial presently has an average rating of "Hold" and a consensus target price of $75.25.

First American Financial Trading Down 0.5%

Shares of FAF stock opened at $59.05 on Tuesday. The stock has a market cap of $6.01 billion, a price-to-earnings ratio of 32.62 and a beta of 1.27. The stock has a 50-day moving average of $64.71 and a 200-day moving average of $61.24. First American Financial has a 1-year low of $53.09 and a 1-year high of $70.92.

Institutional Trading of First American Financial

A number of large investors have recently bought and sold shares of the company. ProShare Advisors LLC increased its position in First American Financial by 3.9% in the second quarter. ProShare Advisors LLC now owns 4,561 shares of the insurance provider's stock worth $280,000 after buying an additional 172 shares during the last quarter. Adams Wealth Management increased its position in First American Financial by 1.9% in the first quarter. Adams Wealth Management now owns 10,983 shares of the insurance provider's stock worth $721,000 after buying an additional 207 shares during the last quarter. CacheTech Inc. increased its position in First American Financial by 1.9% in the first quarter. CacheTech Inc. now owns 10,983 shares of the insurance provider's stock worth $721,000 after buying an additional 207 shares during the last quarter. Treasurer of the State of North Carolina increased its position in First American Financial by 0.5% in the second quarter. Treasurer of the State of North Carolina now owns 45,932 shares of the insurance provider's stock worth $2,820,000 after buying an additional 220 shares during the last quarter. Finally, American Century Companies Inc. increased its position in First American Financial by 0.5% in the first quarter. American Century Companies Inc. now owns 43,006 shares of the insurance provider's stock worth $2,823,000 after buying an additional 229 shares during the last quarter. 89.05% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Margaret M. Mccarthy sold 3,500 shares of First American Financial stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $65.63, for a total transaction of $229,705.00. Following the sale, the director directly owned 28,095 shares in the company, valued at approximately $1,843,874.85. This trade represents a 11.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 3.70% of the company's stock.

First American Financial Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Monday, September 22nd were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 3.7%. This is an increase from First American Financial's previous quarterly dividend of $0.54. The ex-dividend date was Monday, September 22nd. First American Financial's dividend payout ratio is 121.55%.

First American Financial declared that its Board of Directors has authorized a stock buyback plan on Wednesday, July 23rd that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the insurance provider to repurchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

First American Financial Company Profile

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.

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