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

Company Overview

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance and settlement services to the real estate and mortgage industries in the United States, as well as a diversified specialty insurance business. Through its nationwide network of title agents, attorneys and settlement professionals, First American delivers solutions that help clients manage risk and facilitate efficient real estate transactions.

Founded in 1889 as the Orange County Title Company in Los Angeles, California, the company adopted the First American name in 1908 and has since expanded its operations across all 50 states and into select international markets, including Canada, Europe and Asia. Headquartered in Santa Ana, California, First American has grown through strategic acquisitions and investments in technology to enhance its service offerings and operational efficiency.

The company’s core Title Insurance and Services segment issues title insurance policies, conducts title searches, provides escrow and closing services and offers property data, valuation and risk management solutions. Its Specialty Insurance segment underwrites property and casualty products tailored to mortgage and financial institutions, including lender-placed insurance, mortgage impairment policies and financial institution bonds. First American has also developed digital platforms and data analytics capabilities to streamline the closing process and deliver real-time insights to lenders, real estate professionals and consumers.

First American is led by President and Chief Executive Officer Dennis J. Gilmore, who brings over two decades of industry experience and has guided the company through significant periods of growth and transformation. The company’s executive leadership team and Board of Directors emphasize strong corporate governance, innovation and client service as they navigate evolving market trends and regulatory environments. Through ongoing investments in technology and strategic partnerships, First American continues to advance its mission of delivering secure, transparent and efficient real estate and insurance solutions.

Key Stats

• Today's Range: $53.09 to $60.01
• 50-Day Range: $54.10 to $63.25
• 52-Week Range: $53.09 to $70.92
• Volume: 7.06 million shs
• Average Volume: 783,038 shs
• Market Capitalization: $5.83 billion
• P/E Ratio: 37.51
• Dividend Yield: 3.81%
• Price Target: $74.50
• Consensus Rating: Moderate Buy

First American Financial Stock Analysis - MarketRank™

First American Financial scored higher than 94% of companies evaluated by MarketBeat, and ranked 92nd out of 906 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

First American Financial has received a consensus rating of Moderate Buy. The company's average rating score is 2.75, and is based on 3 buy ratings, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

First American Financial has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 9.53%

Earnings Growth

Earnings for First American Financial are expected to grow by 9.53% in the coming year, from $5.35 to $5.86 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of First American Financial is 37.51, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 25.66.

Price to Earnings Ratio vs. Sector

The P/E ratio of First American Financial is 37.51, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 20.07.

Price to Book Value per Share Ratio

First American Financial has a P/B Ratio of 1.18. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.92% 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 2, 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 46.88%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Leadership

First American Financial is a leading dividend payer. It pays a dividend yield of 3.60%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

First American Financial has been increasing its dividend for 15 years.

Dividend Coverage

The dividend payout ratio of First American Financial is 143.05%. 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 36.86% next year. This indicates that First American Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.6 / 5
• Environmental Score: -0.52

Percentage of Shares Shorted

1.92% 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 2, 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 46.88%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.42

News Sentiment

First American Financial has a news sentiment score of 0.42. 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 0.76 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 15 news articles for First American Financial this week, compared to 7 articles on an average week.

Search Interest

Only 1 people have searched for FAF on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.

MarketBeat Follows

1 people have added First American Financial to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, First American Financial insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 3.70% of the stock of First American Financial is held by insiders.

Percentage Held by Institutions

89.05% 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.

FAF Stock Analysis - Frequently Asked Questions

How have FAF shares performed this year?

First American Financial's stock was trading at $62.44 on January 1st, 2025. Since then, FAF shares have decreased by 9.3% and is now trading at $56.64.

How were First American Financial's earnings last quarter?

First American Financial Corporation (NYSE:FAF) announced its quarterly earnings data on Wednesday, April, 23rd. The insurance provider reported $0.84 earnings per share for the quarter, beating analysts' consensus estimates of $0.65 by $0.19. The company's quarterly revenue was up 11.1% compared to the same quarter last year.
Read the conference call transcript.

Who are First American Financial's major shareholders?

First American Financial's top institutional shareholders include Reinhart Partners LLC. (1.18%), Harbor Capital Advisors Inc. (0.10%), Delphi Management Inc. MA (0.02%) and Wealth Enhancement Advisory Services LLC (0.01%). Insiders that own company stock include Dennis J Gilmore, Mark Edward Seaton, Lisa W Cornehl 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 Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of First American Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that First American Financial investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Broadcom (AVGO), Exxon Mobil (XOM), Walmart (WMT) and JPMorgan Chase & Co. (JPM).

Company Calendar

• Last Earnings: 4/23/2025
• Record date for 6/16 Dividend: 6/09/2025
• Ex-Dividend for 6/16 Dividend: 6/09/2025
• Dividend Payable: 6/16/2025
• Today: 7/11/2025
• Next Earnings (Estimated): 7/23/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: INS - PROP&CASLTY
• Sub-Industry: Property & Casualty Insurance
• Current Symbol: NYSE:FAF
• CIK: 1472787
• Web: www.firstam.com
• Phone: (714) 250-3000
• Fax: 714-541-6372
• Employees: 19,038
• Year Founded: N/A

Price Target and Rating

• Average Price Target for First American Financial: $74.50
• High Price Target: $78.00
• Low Price Target: $70.00
• Potential Upside/Downside: +31.5%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.75
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.51
• Trailing P/E Ratio: 37.51
• Forward P/E Ratio: 10.59
• P/E Growth: N/A
• Net Income: $131.10 million
• Net Margins: 2.52%
• Pretax Margin: 3.24%
• Return on Equity: 10.05%
• Return on Assets: 3.22%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 0.95
• Quick Ratio: 0.95

Sales & Book Value

• Annual Sales: $6.13 billion
• Price / Sales: 0.95
• Cash Flow: $6.08 per share
• Price / Cash Flow: 9.31
• Book Value: $47.83 per share
• Price / Book: 1.18

Miscellaneous

• Outstanding Shares: 102,900,000
• Free Float: 99,093,000
• Market Cap: $5.83 billion
• Optionable: Optionable
• Beta: 1.24