Should I buy or sell First American Financial stock right now?

5 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for First American Financial in the last twelve months. There are currently 3 hold ratings and 2 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "hold" FAF shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in FAF, but not buy additional shares or sell existing shares. View FAF analyst ratings or view top-rated stocks .

What is First American Financial's stock price target for 2024?

5 brokers have issued 1-year price targets for First American Financial's stock. Their FAF share price targets range from $53.00 to $77.00. On average, they anticipate the company's stock price to reach $65.75 in the next year. This suggests a possible upside of 8.8% from the stock's current price. View analysts price targets for FAF or view top-rated stocks among Wall Street analysts .

How have FAF shares performed in 2023?

First American Financial's stock was trading at $52.34 at the start of the year. Since then, FAF shares have increased by 15.4% and is now trading at $60.42. View the best growth stocks for 2023 here .

Are investors shorting First American Financial?

First American Financial saw a increase in short interest during the month of October. As of October 31st, there was short interest totaling 1,100,000 shares, an increase of 10.8% from the October 15th total of 992,900 shares. Based on an average daily trading volume, of 517,700 shares, the short-interest ratio is presently 2.1 days. Approximately 1.1% of the shares of the company are short sold. View First American Financial's Short Interest .

When is First American Financial's next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Thursday, February 8th 2024. View our FAF earnings forecast .

How were First American Financial's earnings last quarter?

First American Financial Co. (NYSE:FAF) announced its quarterly earnings results on Thursday, October, 26th. The insurance provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.13. The insurance provider earned $1.48 billion during the quarter, compared to analyst estimates of $1.60 billion. First American Financial had a trailing twelve-month return on equity of 9.82% and a net margin of 3.78%. The firm's revenue for the quarter was down 18.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.62 EPS.

How often does First American Financial pay dividends? What is the dividend yield for First American Financial?

First American Financial announced a quarterly dividend on Tuesday, November 7th. Investors of record on Friday, December 8th will be given a dividend of $0.53 per share on Friday, December 15th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.51%. The ex-dividend date of this dividend is Thursday, December 7th. Read our dividend analysis for FAF .

Is First American Financial a good dividend stock?

First American Financial (NYSE:FAF) pays an annual dividend of $2.12 per share and currently has a dividend yield of 3.51%. The company has been increasing its dividend for 14 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. The dividend payout ratio is 93.39%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on earnings estimates, FAF will have a dividend payout ratio of 41.17% next year. This indicates that the company will be able to sustain or increase its dividend. Read our dividend analysis for FAF .

What ETFs hold First American Financial's stock?

ETFs with the largest weight of First American Financial (NYSE:FAF) stock in their portfolio include SPDR S&P Insurance ETF (KIE) , ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM) , Schwab Ariel ESG ETF (SAEF) , Global X Guru Index ETF (GURU) , Harbor Corporate Culture Leaders ETF (HAPY) , Invesco S&P MidCap 400 Pure Value ETF (RFV) , Fidelity Small-Mid Cap Opportunities ETF (FSMO) and WisdomTree U.S. Value Fund (WTV) .

What other stocks do shareholders of First American Financial own?

Based on aggregate information from My MarketBeat watchlists, some companies that other First American Financial investors own include CA (CA) , BlackRock (BLK) , Endologix (ELGX) , Chipotle Mexican Grill (CMG) , Starbucks (SBUX) , Athabasca Oil (ATH) , NIC (EGOV) , Micron Technology (MU) , Zoetis (ZTS) and Accenture (ACN) .

Who are First American Financial's major shareholders?

First American Financial's stock is owned by a variety of retail and institutional investors. Top institutional shareholders include FMR LLC (8.98%), HG Vora Capital Management LLC (7.27%), Ariel Investments LLC (3.54%), Boston Partners (3.07%), Charles Schwab Investment Management Inc. (2.59%) and Victory Capital Management Inc. (2.07%). Insiders that own company stock include Christopher Michael Leavell , Kenneth D Degiorgio and Steven A Adams . View institutional ownership trends .

How do I buy shares of First American Financial?

Shares of FAF stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull , Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Compare Top Brokerages Here .

First American Financial Stock Price, News & Analysis (NYSE:FAF)

$60.42

+0.82 (+1.38%)

(As of 12/1/2023 ET)

Compare

Today's Range: $59.18
▼
$60.44
50-Day Range: $50.07
▼
$60.42
52-Week Range: $49.55
▼
$64.66

Volume: 475,411 shs
Average Volume: 713,924 shs
Market Capitalization: $6.23 billion

P/E Ratio: 26.62
Dividend Yield: 3.51%
Price Target: $65.75

First American Financial MarketRank™ Stock Analysis

Analyst Rating: Hold
2.40 Rating Score
Upside/Downside: 8.8% Upside
$65.75 Price Target
Short Interest: Healthy
1.18% of Float Sold Short
Dividend Strength: Strong
Based on Four Factors
Sustainability: -0.52
Upright™ Environmental Score
News Sentiment: -0.15
Based on 2 Articles This Week
Insider Trading: Selling Shares
$101,160 Sold Last Quarter
Proj. Earnings Growth: 22.04%
From $4.22 to $5.15 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.32 out of 5 stars

Finance Sector

329th out of 828 stocks

Title Insurance Industry

1st out of 4 stocks

1.2

Analyst's Opinion

Consensus Rating
First American Financial has received a consensus rating of Hold. The company's average rating score is 2.40, and is based on 2 buy ratings, 3 hold ratings, and no sell ratings.
Price Target Upside/Downside
According to analysts' consensus price target of $65.75, First American Financial has a forecasted upside of 8.8% from its current price of $60.42.
Amount of Analyst Coverage
First American Financial has only been the subject of 2 research reports in the past 90 days.

3.0

Short Interest

Percentage of Shares Shorted
1.18% of the float of First American Financial has been sold short.
Short Interest Ratio / Days to Cover
First American Financial has a short interest ratio ("days to cover") of 1.9, which is generally considered an acceptable ratio of short interest to trading volume.
Change versus previous month
Short interest in First American Financial has recently increased by 5.45%, indicating that investor sentiment is decreasing significantly.

4.2

Dividend Strength

Dividend Leadership
First American Financial is a leading dividend payer. It pays a dividend yield of 3.51%, putting its dividend yield in the top 25% of dividend-paying stocks.
Dividend Growth
First American Financial has been increasing its dividend for 14 years.
Dividend Coverage
The dividend payout ratio of First American Financial is 93.39%. Payout ratios above 75% are not desirable because they may not be sustainable.
Dividend Sustainability
Based on earnings estimates, First American Financial will have a dividend payout ratio of 41.17% next year. This indicates that First American Financial will be able to sustain or increase its dividend.

2.6

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
First American Financial has received a 17.01% net impact score from Upright. First American seems to create the most significant positive value in categories "Jobs", "Taxes", and "Societal infrastructure". The positive contribution in the "Societal infrastructure" impact category is mostly driven by its "Home insurance services for individuals", "Home warranties", and "Trust services" products. See details.
Environmental Sustainability
The Environmental Impact score for First American Financial is -0.52.

1.0

News and Social Media Coverage

News Sentiment
First American Financial has a news sentiment score of -0.15. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.67 average news sentiment score of Finance companies.
News Coverage This Week
MarketBeat has tracked 2 news articles for First American Financial this week, compared to 4 articles on an average week.
MarketBeat Follows
Only 2 people have added First American Financial to their MarketBeat watchlist in the last 30 days. This is a decrease of -33% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, First American Financial insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $101,160.00 in company stock.
Percentage Held by Insiders
Only 3.60% of the stock of First American Financial is held by insiders.
Percentage Held by Institutions
85.53% of the stock of First American Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

3.1

Earnings and Valuation

Earnings Growth
Earnings for First American Financial are expected to grow by 22.04% in the coming year, from $4.22 to $5.15 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of First American Financial is 26.62, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 105.65.
Price to Earnings Ratio vs. Sector
The P/E ratio of First American Financial is 26.62, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 30.98.
Price to Book Value per Share Ratio
First American Financial has a P/B Ratio of 1.37. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

See Top Rated MarketRank™ Stocks Here

About First American Financial Stock (NYSE:FAF)

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, mortgage subservicing, and related products and services, as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, New Zealand, South Korea, and internationally. The Specialty Insurance segment provides home warranty products, including residential service contracts that cover residential systems, such as heating and air conditioning systems, and various appliances against failures that occur as the result of normal usage during the coverage period. This segment operates in 35 states and the District of Columbia. The company was founded in 1889 and is headquartered in Santa Ana, California.

FAF Stock Price History

30 days | 90 days | 365 days | Advanced Chart

FAF Stock News Headlines

December 2, 2023 | finance.yahoo.com

We Wouldn't Be Too Quick To Buy First American Financial Corporation (NYSE:FAF) Before It Goes Ex-Dividend

November 27, 2023 | finance.yahoo.com

First American Financial Corporation to Participate in KBW Virtual Title Insurance Day Conference

December 3, 2023 | DTI Trader (Ad)

All the trading advice you’ve ever received boils down to this

All the trading advice you’ve ever received boils down to one goal and one goal only: finding a reliable edge in the markets. If you can do that, grab hold of it and never let go. Because once you have that edge, and you can count on it, you never need to do anything else.

November 25, 2023 | americanbankingnews.com

First American Financial Co. (NYSE:FAF) Receives Consensus Recommendation of "Hold" from Analysts

November 21, 2023 | morningstar.com

First American Financial Corp FAF

November 17, 2023 | finance.yahoo.com

Insider Sell: VP & Chief Accounting Officer Steven Adams Sells Shares of First American ...