Zacks Research Has Positive Forecast for FAF Q2 Earnings

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for First American Financial to $1.75 from $1.72 and kept a Strong-Buy rating on the stock.
• The company beat expectations in its latest quarter, reporting $1.33 EPS on revenue of $1.85 billion, both ahead of analyst forecasts, with revenue up 16.2% year over year.
• Analyst sentiment remains broadly positive: the stock has a consensus Buy rating and an average price target of $82.50, while the company also announced a quarterly dividend of $0.55 per share.

First American Financial Corporation (NYSE:FAF - Free Report) - Stock analysts at Zacks Research lifted their Q2 2026 earnings per share (EPS) estimates for shares of First American Financial in a research note issued to investors on Wednesday, May 13th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $1.75 for the quarter, up from their prior estimate of $1.72. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $6.83 per share. Zacks Research also issued estimates for First American Financial's Q2 2027 earnings at $1.92 EPS and Q4 2027 earnings at $1.91 EPS.

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

Several other research analysts have also weighed in on FAF. Weiss Ratings upgraded First American Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, April 22nd. Barclays boosted their price target on First American Financial from $72.00 to $80.00 and gave the company an "overweight" rating in a report on Friday, April 24th. Stephens boosted their price target on First American Financial from $81.00 to $84.00 and gave the company an "overweight" rating in a report on Monday, April 27th. Wall Street Zen lowered First American Financial from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of First American Financial in a report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating and six have issued a Buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $82.50.

First American Financial Trading Down 0.1%

FAF stock opened at $67.04 on Monday. The business's 50-day moving average price is $64.57 and its two-hundred day moving average price is $64.16. The firm has a market cap of $6.83 billion, a PE ratio of 10.30, a P/E/G ratio of 0.64 and a beta of 1.28. First American Financial has a 1-year low of $53.09 and a 1-year high of $71.47.

First American Financial Dividend Announcement

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

Insiders Place Their Bets

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The stock was 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 of the company's stock, valued at $2,033,850.05. The trade was a 16.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Margaret M. Mccarthy sold 6,630 shares of the company's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $70.59, for a total value of $468,011.70. Following the completion of the transaction, the director directly owned 24,024 shares in the company, valued at $1,695,854.16. The trade was a 21.63% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On First American Financial

Several hedge funds have recently modified their holdings of the company. V Square Quantitative Management LLC bought a new position in First American Financial during the 4th quarter worth $27,000. Duncker Streett & Co. Inc. raised its position in shares of First American Financial by 616.4% in the 1st quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider's stock worth $26,000 after acquiring an additional 376 shares in the last quarter. Global Retirement Partners LLC raised its position in shares of First American Financial by 1,107.5% in the 4th quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider's stock worth $30,000 after acquiring an additional 443 shares in the last quarter. First Horizon Corp bought a new position in shares of First American Financial in the 3rd quarter worth about $37,000. Finally, Danske Bank A S bought a new position in shares of First American Financial in the 3rd quarter worth about $45,000. Institutional investors and hedge funds own 89.05% of the company's stock.

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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