Zacks Research Has Pessimistic Outlook of FAF Q3 Earnings

First American Financial Corporation (NYSE:FAF) – Investment analysts at Zacks Research lowered their Q3 2026 earnings per share (EPS) estimates for First American Financial in a note issued to investors on Monday, July 20th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $1.77 for the quarter, down from their prior estimate of $1.83. 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 2026 earnings at $1.76 EPS, FY2026 earnings at $6.64 EPS, Q2 2027 earnings at $2.03 EPS, Q3 2027 earnings at $1.91 EPS, FY2027 earnings at $7.11 EPS, Q1 2028 earnings at $1.20 EPS and FY2028 earnings at $7.27 EPS.

First American Financial (NYSE:FAF) last released its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.28. The company had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.03 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.The firm’s revenue was up 15.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.53 earnings per share.

Several other research analysts also recently commented on FAF. Keefe, Bruyette & Woods cut their target price 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. Weiss Ratings reissued a “buy (b)” rating on shares of First American Financial in a research note on Monday. Stephens restated an “overweight” rating and set a $84.00 price objective on shares of First American Financial in a research report on Friday, June 12th. Barclays lifted their price objective 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. Finally, Truist Financial upped their target price on First American Financial from $82.00 to $85.00 and gave the company a “buy” rating in a report on Friday, April 24th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, First American Financial currently has a consensus rating of “Moderate Buy” and an average price target of $84.20.

First American Financial Stock Down 1.7%

Shares of First American Financial stock opened at $70.43 on Tuesday. First American Financial has a twelve month low of $56.20 and a twelve month high of $73.50. The stock has a market cap of $7.18 billion, a price-to-earnings ratio of 10.82, a P/E/G ratio of 0.70 and a beta of 1.23. The company’s fifty day moving average is $68.18 and its 200 day moving average is $65.85.

Hedge Funds Weigh In On First American Financial

A number of institutional investors have recently modified their holdings of the company. V Square Quantitative Management LLC acquired a new position in First American Financial during the fourth quarter worth $27,000. Duncker Streett & Co. Inc. grew its holdings in shares of First American Financial by 616.4% during the first quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider’s stock valued at $26,000 after buying an additional 376 shares during the last quarter. Global Retirement Partners LLC grew its holdings in shares of First American Financial by 1,107.5% during the fourth quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider’s stock valued at $30,000 after buying an additional 443 shares during the last quarter. Danske Bank A S bought a new stake in shares of First American Financial during the third quarter worth about $45,000. Finally, IFP Advisors Inc increased its position in shares of First American Financial by 568.8% during the fourth quarter. IFP Advisors Inc now owns 749 shares of the insurance provider’s stock worth $46,000 after acquiring an additional 637 shares in the last quarter. 89.05% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related 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 directly owned 29,635 shares of the company’s stock, valued at approximately $2,033,850.05. This represents a 16.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Margaret M. Mccarthy sold 6,630 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $70.59, for a total value of $468,011.70. Following the completion of the transaction, the director owned 24,024 shares in the company, valued at approximately $1,695,854.16. The trade was a 21.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.50% of the stock is currently owned by corporate insiders.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were issued a dividend of $0.55 per share. The ex-dividend date was Monday, June 8th. This represents a $2.20 annualized dividend and a dividend yield of 3.1%. First American Financial’s dividend payout ratio is currently 33.79%.

First American Financial News Roundup

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

• Positive Sentiment: FAF beat Q2 expectations, posting adjusted EPS of $2.08 versus the $1.80 consensus, and revenue of $2.11 billion versus estimates of $2.03 billion, which points to solid underlying operating performance. Article Title
• Positive Sentiment: Several recent analyst updates nudged near- and medium-term earnings estimates slightly higher, suggesting some confidence in FAF’s earnings trajectory. Reference
• Neutral Sentiment: Zacks Research maintained a “Hold” rating, indicating analysts see the stock as fairly valued rather than a clear buy at current levels. Reference
• Negative Sentiment: Despite the earnings beat, the stock has been pressured as investors may be taking profits or weighing whether the improvement is enough to justify a further re-rating after the recent run-up. Article Title

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.