Zacks Research Issues Pessimistic Outlook for FAF Earnings

First American Financial Corporation (NYSE:FAF) – Equities researchers at Zacks Research dropped their Q1 2027 EPS estimates for shares of First American Financial in a note issued to investors on Monday, July 20th. Zacks Research analyst Team now forecasts that the insurance provider will earn $1.26 per share for the quarter, down from their prior forecast of $1.31. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for First American Financial’s current full-year earnings is $6.74 per share. Zacks Research also issued estimates for First American Financial’s Q4 2027 earnings at $1.92 EPS and Q2 2028 earnings at $2.03 EPS.

First American Financial (NYSE:FAF) last issued its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.85 billion during the quarter, compared to analysts’ expectations of $1.80 billion. During the same period last year, the company posted $0.84 EPS. First American Financial’s revenue was up 16.2% on a year-over-year basis.

Other equities research analysts have also issued research reports about the stock. Benchmark began coverage on shares of First American Financial in a research report on Monday. They set a “buy” rating and a $85.00 price target for the company. Wall Street Zen cut First American Financial from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Barclays increased their price target on shares of First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Stephens reaffirmed an “overweight” rating and issued a $84.00 price objective on shares of First American Financial in a research note on Friday, June 12th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of First American Financial in a report on Monday. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $84.20.

First American Financial Stock Performance

NYSE FAF opened at $71.54 on Wednesday. The company has a market capitalization of $7.29 billion, a price-to-earnings ratio of 10.99, a PEG ratio of 0.70 and a beta of 1.23. The stock has a 50-day moving average of $68.11 and a 200 day moving average of $65.79. First American Financial has a one year low of $56.20 and a one year high of $73.50.

First American Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 8th were given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Monday, June 8th. First American Financial’s dividend payout ratio is 33.79%.

Insider Activity

In other news, SVP Lisa W. Cornehl sold 5,823 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total transaction of $399,632.49. Following the transaction, the senior vice president owned 29,635 shares of the company’s stock, valued at approximately $2,033,850.05. This represents a 16.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Margaret M. Mccarthy sold 6,630 shares of the company’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $70.59, for a total value of $468,011.70. Following the transaction, the director directly owned 24,024 shares in the company, valued at approximately $1,695,854.16. This represents a 21.63% decrease in their position. The SEC filing for this sale provides additional information. 3.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On First American Financial

Institutional investors and hedge funds have recently modified their holdings of the business. Bar Harbor Wealth Management boosted its stake in shares of First American Financial by 52.4% during the fourth quarter. Bar Harbor Wealth Management now owns 135,649 shares of the insurance provider’s stock valued at $8,334,000 after purchasing an additional 46,639 shares during the period. Jefferies Financial Group Inc. bought a new position in shares of First American Financial in the fourth quarter worth about $6,713,000. Jackson Creek Investment Advisors LLC purchased a new position in First American Financial in the 4th quarter worth about $1,608,000. Manning & Napier Advisors LLC purchased a new position in First American Financial in the 4th quarter worth about $63,693,000. Finally, Tudor Investment Corp ET AL purchased a new position in First American Financial in the 3rd quarter worth about $5,046,000. 89.05% of the stock is owned by institutional investors.

Key Headlines Impacting First American Financial

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

• Positive Sentiment: First American Financial is heading into Q2 earnings with a favorable setup after its last reported quarter beat expectations on both profit and revenue, suggesting the business can still outperform consensus. First American Financial stock and earnings details
• Neutral Sentiment: Analysts are broadly modeling continued earnings growth over the next several years, with estimates still implying higher profits in FY2027 and FY2028, which supports the long-term outlook. First American Financial analyst estimates
• Neutral Sentiment: Investors are also watching previews of the upcoming Q2 earnings report, which could become the main catalyst for the stock if results or guidance differ meaningfully from expectations. Article: What to expect from First American Financial’s (FAF) Q2 earnings
• Negative Sentiment: Zacks Research lowered its FY2026, FY2027, FY2028, and several quarterly EPS estimates for First American Financial, which may have pressured sentiment by signaling slightly softer profitability expectations. First American Financial analyst estimate cuts

First American Financial Company Profile

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.