Zacks Research Has Bullish Forecast for FAF FY2026 Earnings

Key Points

• Zacks Research raised its FY2026 EPS forecast for First American Financial to $6.70 from $6.36 and maintained a Strong-Buy rating. The new estimate is very close to the current consensus of $6.72 per share.
• The company beat expectations in its latest quarter, reporting EPS of $1.33 versus the $1.06 consensus and revenue of $1.85 billion versus $1.80 billion expected. Revenue also climbed 16.2% year over year.
• Analyst sentiment remains generally positive, with several firms boosting price targets and an overall consensus rating of Buy with a target price of $82.50. However, one analyst recently downgraded the stock to Hold.

First American Financial Corporation (NYSE:FAF - Free Report) - Zacks Research boosted their FY2026 earnings per share (EPS) estimates for First American Financial in a research note issued on Wednesday, May 13th. Zacks Research analyst Team now anticipates that the insurance provider will earn $6.70 per share for the year, up from their prior forecast of $6.36. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $6.72 per share. Zacks Research also issued estimates for First American Financial's Q4 2026 earnings at $1.79 EPS, Q1 2027 earnings at $1.27 EPS, Q3 2027 earnings at $1.95 EPS, FY2027 earnings at $7.06 EPS, Q1 2028 earnings at $1.43 EPS and FY2028 earnings at $7.56 EPS.

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

Several other analysts have also commented on the stock. Barclays increased their price target on shares of First American Financial from $72.00 to $80.00 and gave the company an "overweight" rating in a research report on Friday, April 24th. Weiss Ratings upgraded shares of First American Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, April 22nd. Wall Street Zen cut shares of First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of First American Financial in a research note on Friday, February 13th. Finally, Truist Financial lifted their price target 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. One research analyst has rated the stock with a Strong Buy rating and six have issued a Buy rating to the stock. Based on data from MarketBeat.com, First American Financial has an average rating of "Buy" and a consensus target price of $82.50.

First American Financial Price Performance

FAF opened at $66.89 on Friday. The business's 50-day moving average is $64.62 and its two-hundred day moving average is $64.14. First American Financial has a 1 year low of $53.09 and a 1 year high of $71.47. The firm has a market capitalization of $6.82 billion, a PE ratio of 10.28, a price-to-earnings-growth ratio of 0.65 and a beta of 1.28.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be issued a dividend of $0.55 per share. The ex-dividend date is Monday, June 8th. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. First American Financial's dividend payout ratio is 33.79%.

Insider Activity at First American Financial

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of the company'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 transaction, the senior vice president owned 29,635 shares in the company, valued at approximately $2,033,850.05. This represents a 16.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Margaret M. Mccarthy sold 6,630 shares of the firm's stock in a transaction 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 directly owned 24,024 shares of the company's stock, valued at approximately $1,695,854.16. This represents a 21.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.50% of the stock is currently owned by insiders.

Institutional Trading of First American Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Duncker Streett & Co. Inc. increased its holdings in shares of 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 purchasing an additional 376 shares during the period. V Square Quantitative Management LLC acquired a new stake in shares of First American Financial during the fourth quarter worth about $27,000. Global Retirement Partners LLC boosted its position in First American Financial by 1,107.5% in the fourth quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider's stock valued at $30,000 after buying an additional 443 shares during the last quarter. First Horizon Corp acquired a new position in First American Financial in the 3rd quarter worth approximately $37,000. Finally, Danske Bank A S acquired a new position in First American Financial in the 3rd quarter worth approximately $45,000. Institutional investors and hedge funds 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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