Zacks Research Issues Positive Forecast for FAF Earnings

Key Points

• Zacks Research raised its Q4 2027 earnings estimate for First American Financial and reiterated a Strong-Buy rating, signaling continued analyst confidence in the company’s outlook.
• First American Financial’s latest quarterly results beat expectations, with EPS of $1.33 versus the $1.06 estimate and revenue of $1.85 billion topping forecasts, while revenue rose 16.2% year over year.
• The stock also supports a 3.3% dividend yield, and broader analyst sentiment remains positive overall, with a consensus rating of Buy and a consensus target price of $82.50.

First American Financial Corporation (NYSE:FAF - Free Report) - Equities researchers at Zacks Research boosted their Q4 2027 earnings estimates for shares of First American Financial in a research report issued on Wednesday, May 27th. Zacks Research analyst Team now expects that the insurance provider will earn $1.92 per share for the quarter, up from their prior estimate of $1.91. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $6.81 per share. Zacks Research also issued estimates for First American Financial's Q1 2028 earnings at $1.32 EPS.

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

First American Financial Stock Performance

FAF stock opened at $66.51 on Friday. First American Financial has a 1 year low of $53.09 and a 1 year high of $71.47. The firm has a market cap of $6.78 billion, a P/E ratio of 10.22, a price-to-earnings-growth ratio of 0.65 and a beta of 1.28. The stock has a 50-day simple moving average of $64.91 and a 200-day simple moving average of $64.53.

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 for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $1.80 billion. During the same period in the prior year, the company earned $0.84 EPS. The firm's revenue was up 16.2% on a year-over-year basis.

First American Financial Dividend Announcement

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

Insider Transactions at First American Financial

In other news, Director Margaret M. Mccarthy sold 6,630 shares of the company's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $70.59, for a total value of $468,011.70. Following the sale, the director owned 24,024 shares in the company, valued at approximately $1,695,854.16. This represents a 21.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Lisa W. Cornehl sold 5,823 shares of the company's stock in a transaction dated 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 approximately $2,033,850.05. This trade represents a 16.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 3.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. V Square Quantitative Management LLC acquired a new position in shares of First American Financial in the 4th quarter worth approximately $27,000. Duncker Streett & Co. Inc. grew 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 grew 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. Danske Bank A S acquired a new position in shares of First American Financial in the 3rd quarter worth approximately $45,000. Finally, IFP Advisors Inc grew its position in shares of First American Financial by 568.8% in the 4th quarter. IFP Advisors Inc now owns 749 shares of the insurance provider's stock worth $46,000 after acquiring an additional 637 shares in the last quarter. Institutional investors and hedge funds own 89.05% of the company's stock.

More First American Financial News

Here are the key news stories impacting First American Financial this week:

• Positive Sentiment: Zacks Research raised its earnings estimates for First American Financial across multiple periods, including Q2 2026, Q4 2026, Q1 2027, Q2 2027 and FY2027, while reiterating a Strong-Buy rating. Analyst estimate revisions
• Positive Sentiment: Zacks also named FAF to its Best Value Stocks and Best Income Stocks lists for May 27, which may attract additional investor interest and reinforce the stock’s appeal as a value-and-yield idea. Best Value Stocks to Buy for May 27th
• Positive Sentiment: Zacks Research and DOWLING & PARTN both projected earnings above or near consensus for upcoming years, including FY2028 estimates above current expectations, signaling confidence in FAF’s longer-term earnings power. Analyst outlook
• Neutral Sentiment: The company’s latest reported quarterly results were already solid, with EPS of $1.33 beating estimates and revenue topping forecasts, so the new analyst notes mainly reinforce an existing favorable earnings narrative rather than introduce a fresh operational catalyst. Recent earnings results

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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