Zacks Research Has Negative Outlook for FAF Q1 Earnings

First American Financial Corporation (NYSE:FAF) – Equities researchers at Zacks Research reduced their Q1 2028 earnings estimates for First American Financial in a research report issued on Monday, September 28th. Zacks Research analyst Team now expects that the insurance provider will post earnings of $1.19 per share for the quarter, down from their prior estimate of $1.23. Zacks Research has a “Hold” rating on the stock. The consensus estimate for First American Financial’s current full-year earnings is $7.12 per share. Zacks Research also issued estimates for First American Financial’s Q2 2028 earnings at $2.08 EPS.

A number of other equities analysts also recently commented on the company. Stephens reiterated an “overweight” rating and set a $84.00 price objective on shares of First American Financial in a research report on Friday, June 12th. Benchmark initiated coverage on First American Financial in a report on Tuesday, July 21st. They issued a “buy” rating and a $85.00 target price for the company. Barclays raised their target price on First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Keefe, Bruyette & Woods boosted their price target on shares of First American Financial from $84.00 to $86.00 and gave the company an “outperform” rating in a research report on Friday, July 24th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of First American Financial in a report on Monday, July 20th. Seven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, First American Financial currently has an average rating of “Moderate Buy” and a consensus target price of $84.60.

First American Financial Trading Down 1.0%

Shares of NYSE FAF opened at $64.07 on Wednesday. The company has a 50-day moving average of $72.50 and a 200 day moving average of $68.50. The stock has a market cap of $6.54 billion, a PE ratio of 8.87, a P/E/G ratio of 0.60 and a beta of 1.21. First American Financial has a 12-month low of $56.20 and a 12-month high of $79.87.

First American Financial (NYSE:FAF) last posted its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, topping the consensus estimate of $1.80 by $0.28. The firm had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.03 billion. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. The company’s revenue for the quarter was up 15.0% on a year-over-year basis. During the same period last year, the firm posted $1.53 earnings per share.

Hedge Funds Weigh In On First American Financial

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in First American Financial in the 2nd quarter valued at about $643,570,000. Dimensional Fund Advisors LP lifted its position in First American Financial by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider’s stock valued at $279,529,000 after buying an additional 245,279 shares during the last quarter. Capital Research Global Investors boosted its stake in First American Financial by 3.3% during the fourth quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider’s stock worth $209,868,000 after buying an additional 109,242 shares during the period. Geode Capital Management LLC boosted its stake in First American Financial by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider’s stock worth $110,200,000 after buying an additional 19,752 shares during the period. Finally, Reinhart Partners LLC. increased its position in shares of First American Financial by 1.9% during the second quarter. Reinhart Partners LLC. now owns 1,553,234 shares of the insurance provider’s stock valued at $106,537,000 after acquiring an additional 28,534 shares during the last quarter. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other First American Financial news, CAO Steven Adams sold 3,253 shares of the firm’s stock in a transaction on Friday, July 24th. The stock was sold at an average price of $74.99, for a total transaction of $243,942.47. Following the completion of the sale, the chief accounting officer owned 10,234 shares of the company’s stock, valued at $767,447.66. This trade represents a 24.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 3.50% of the company’s stock.

First American Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Investors of record on Monday, September 28th will be given a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 3.4%. The ex-dividend date is Monday, September 28th. First American Financial’s dividend payout ratio is presently 33.80%.

Key Stories Impacting First American Financial

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

• Positive Sentiment: Zacks Research raised multiple earnings estimates for FAF. The firm lifted its Q3 2026 EPS forecast to $1.87 from $1.85, FY2026 to $7.08 from $7.04, FY2027 to $7.45 from $7.39, and FY2028 to $7.48 from $7.43. It also increased estimates for several 2027 quarters, suggesting modestly improved expectations for First American’s profitability. Zacks Research Has Optimistic Opinion of FAF Q3 Earnings
• Positive Sentiment: First American’s dividend increase is strengthening its capital-return story. The move may make FAF more attractive to income-oriented investors and signals management’s confidence in cash generation, although the article does not provide details on the size or timing of the increase. Does First American Financial Boosting Its Dividend Reframe the Capital Return Narrative?
• Neutral Sentiment: Zacks maintained a “Hold” rating on FAF. Despite the upward estimate revisions, the unchanged rating indicates analysts see limited immediate upside or balanced risk. Zacks’ current full-year consensus EPS reference is approximately $7.11. Zacks Research Has Optimistic Opinion of FAF Q3 Earnings
• Negative Sentiment: U.S. home-price growth remained below its long-term average for the 17th consecutive month. The First American Data & Analytics report points to a still-muted housing market, which could weigh on transaction volumes and demand for title-insurance services. U.S. House Price Growth Remains Below Long-Term Average

About First American Financial

First American Financial Corporation (NYSE: FAF) provides title insurance, settlement services and related real estate transaction solutions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in title, liens and other issues affecting ownership or mortgage interests.

The company also offers escrow and closing services, title search and examination, property information, valuation, mortgage subservicing and other technology-enabled solutions for the real estate and mortgage industries.