First American Financial (NYSE:FAF) Releases Quarterly Earnings Results

First American Financial (NYSE:FAF) released its quarterly earnings results on Wednesday. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.80 by $0.28, FiscalAI reports. The company had revenue of $2.11 billion for the quarter, compared to analysts’ expectations of $2.03 billion. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. During the same period last year, the company earned $1.53 EPS.

First American Financial Price Performance

FAF stock traded down $1.22 during trading on Wednesday, reaching $70.43. 880,780 shares of the stock traded hands, compared to its average volume of 1,014,585. The business’s 50 day moving average price is $68.11 and its 200-day moving average price is $65.79. First American Financial has a 52-week low of $56.20 and a 52-week high of $73.50. The firm has a market capitalization of $7.18 billion, a PE ratio of 10.82, a P/E/G ratio of 0.70 and a beta of 1.23.

First American Financial Announces Dividend

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

More First American Financial News

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

• Positive Sentiment: First American Financial beat Wall Street’s quarterly expectations on both earnings and revenue, a bullish sign for the stock. Press Release
• Positive Sentiment: Analysts at Zacks Research raised some near- and long-term earnings forecasts, including Q2 2028 and Q4 2027, suggesting improving earnings expectations for First American Financial.
• Neutral Sentiment: Zacks Research maintained a Hold rating, so the upgraded estimates were not accompanied by a more bullish recommendation.
• Negative Sentiment: Some Zacks estimates were trimmed for FY2026, Q3 2026, Q4 2026, Q1 2027, Q3 2027, FY2027, and FY2028, which may temper enthusiasm despite the earnings beat.

Insider Transactions at First American Financial

In other news, SVP Lisa W. Cornehl sold 5,823 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total value of $399,632.49. Following the transaction, the senior vice president directly owned 29,635 shares in the company, valued at $2,033,850.05. This trade represents a 16.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Margaret M. Mccarthy sold 6,630 shares of First American Financial stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $70.59, for a total value of $468,011.70. Following the completion of the transaction, the director directly owned 24,024 shares in the company, valued at $1,695,854.16. This represents a 21.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 3.50% of the company’s stock.

Institutional Inflows and Outflows

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

Wall Street Analysts Forecast Growth

FAF has been the topic of several recent analyst reports. Barclays upped their price objective on shares of First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a research note on Tuesday, July 7th. Wall Street Zen cut shares of First American Financial from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Truist Financial boosted their price target on First American Financial from $82.00 to $85.00 and gave the company a “buy” rating in a report on Friday, April 24th. Weiss Ratings reissued a “buy (b)” rating on shares of First American Financial in a research note on Monday. Finally, Keefe, Bruyette & Woods decreased their price objective on First American Financial from $87.00 to $84.00 and set an “outperform” rating on the stock in a report on Thursday, June 25th. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, First American Financial has a consensus rating of “Moderate Buy” and a consensus price target of $84.20.

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.