First American Financial Corporation (NYSE:FAF) Receives Consensus Recommendation of “Buy” from Analysts

Shares of First American Financial Corporation (NYSE:FAF) have been given a consensus rating of “Buy” by the six analysts that are presently covering the company, Marketbeat reports. Six analysts have rated the stock with a buy recommendation. The average twelve-month price target among analysts that have covered the stock in the last year is $79.00.

Several analysts have weighed in on the company. Stephens raised First American Financial from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $70.00 to $81.00 in a research note on Monday, March 2nd. Wall Street Zen raised First American Financial from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of First American Financial in a research report on Friday, February 13th. Barclays upgraded First American Financial from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $70.00 to $72.00 in a research report on Monday, April 6th. Finally, Truist Financial boosted their target price on First American Financial from $76.00 to $82.00 and gave the stock a “buy” rating in a research report on Tuesday, February 17th.

Insider Buying and Selling at First American Financial

In related news, Director Parker S. Kennedy purchased 44,841 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was acquired at an average cost of $67.85 per share, for a total transaction of $3,042,461.85. Following the completion of the acquisition, the director owned 251,552 shares in the company, valued at $17,067,803.20. This trade represents a 21.69% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Jones Financial Companies Lllp boosted its stake in shares of First American Financial by 121.3% during the 1st quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider’s stock worth $97,000 after acquiring an additional 813 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of First American Financial by 10.8% during the first quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider’s stock valued at $19,233,000 after buying an additional 28,666 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in First American Financial by 7.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider’s stock worth $27,180,000 after buying an additional 27,600 shares in the last quarter. Jane Street Group LLC increased its stake in First American Financial by 182.5% during the first quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider’s stock valued at $4,435,000 after acquiring an additional 43,651 shares during the period. Finally, Focus Partners Wealth lifted its position in shares of First American Financial by 11.3% in the 1st quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider’s stock worth $281,000 after acquiring an additional 435 shares during the period. Institutional investors own 89.05% of the company’s stock.

Key First American Financial News

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

• Positive Sentiment: Zacks lifted multiple annual and multi‑quarter EPS targets, including FY2027 to $6.83 (from $6.75), FY2028 to $7.48 (from $7.42) and FY2026 to $6.36 (from $6.34) — this suggests analysts expect stronger earnings growth ahead, which can support higher valuation. Zacks estimate revisions (MarketBeat)
• Positive Sentiment: Zacks also bumped several quarterly forecasts (examples: Q1 2027 to $1.22 from $1.14; Q1 2028 to $1.30; Q3 2026 to $1.83; Q3 2027 to $1.85; Q4 2026 to $1.76; Q4 2027 to $1.96) — raises to near‑term quarters reduce downside risk to upcoming prints. Zacks quarterly estimate changes (MarketBeat)
• Neutral Sentiment: A Zacks feature considered First American as a potential “high‑growth dividend stock,” highlighting dividend appeal alongside growth — useful context for income and total‑return investors but not a direct catalyst. Are You Looking for a High-Growth Dividend Stock?
• Negative Sentiment: Zacks trimmed Q2 2026 EPS to $1.72 (from $1.79) — a notable near‑term downgrade that could weigh on the next quarterly print and increase short‑term uncertainty. Q2 2026 estimate cut (MarketBeat)
• Negative Sentiment: Zacks also reduced Q2 2027 EPS to $1.80 (from $1.86) — another mid‑cycle pullback that tempers the otherwise bullish revisions and may moderate upside until clearer quarter‑by‑quarter momentum is visible. Q2 2027 estimate cut (MarketBeat)

First American Financial Trading Up 1.3%

NYSE:FAF opened at $67.23 on Tuesday. First American Financial has a twelve month low of $53.09 and a twelve month high of $71.47. The firm’s fifty day simple moving average is $64.13 and its 200 day simple moving average is $63.24. The firm has a market capitalization of $6.88 billion, a price-to-earnings ratio of 11.10, a PEG ratio of 0.68 and a beta of 1.28.

First American Financial (NYSE:FAF) last posted its quarterly earnings results on Wednesday, February 11th. The insurance provider reported $1.99 EPS for the quarter, topping analysts’ consensus estimates of $1.49 by $0.50. First American Financial had a return on equity of 11.92% and a net margin of 8.34%.The business had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same period last year, the firm earned $1.35 earnings per share. The company’s revenue for the quarter was up 21.6% compared to the same quarter last year. On average, analysts predict that First American Financial will post 6.37 earnings per share for the current year.

First American Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 9th were paid a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Monday, March 9th. First American Financial’s dividend payout ratio is currently 36.61%.

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.