First American Financial (NYSE:FAF) Hits New 12-Month High Following Analyst Upgrade

Shares of First American Financial Corporation (NYSE:FAF) hit a new 52-week high during mid-day trading on Saturday after Keefe, Bruyette & Woods raised their price target on the stock from $84.00 to $86.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. First American Financial traded as high as $75.96 and last traded at $75.11, with a volume of 1492332 shares changing hands. The stock had previously closed at $68.96.

FAF has been the subject of a number of other research reports. Truist Financial upped their price objective on shares of First American Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a research report on Friday, April 24th. Barclays boosted their price target on shares of First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Benchmark assumed coverage on shares of First American Financial in a research report on Tuesday. They issued a “buy” rating and a $85.00 price objective for the company. Stephens reiterated an “overweight” rating and set a $84.00 target price on shares of First American Financial in a research report on Friday, June 12th. Finally, Wall Street Zen downgraded First American Financial from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Seven analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $84.60.

Insiders Place Their Bets

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $68.63, for a total transaction of $399,632.49. Following the completion of the transaction, the senior vice president owned 29,635 shares in the company, valued at approximately $2,033,850.05. The trade was a 16.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 3.50% of the company’s stock.

Key Stories Impacting First American Financial

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

• Positive Sentiment: First American Financial reported Q2 earnings of $2.08 per share, beating estimates of $1.80, while revenue came in at $2.11 billion versus expectations of $2.03 billion. The results were driven by commercial title strength, higher investment income, and improved average revenue per order. Article: First American Financial (FAF) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on First American Financial to $86 from $84 and reaffirmed an outperform rating, signaling confidence in further upside for FAF. Article: Benzinga report on price target increase
• Positive Sentiment: Benchmark Co. initiated coverage with a buy rating and a $85 price target, adding to the bullish analyst sentiment around the stock. Article: Benchmark initiates coverage on FAF
• Neutral Sentiment: Investors are also parsing Q2 earnings-call highlights and transcripts, which emphasized record commercial revenue and the company’s operating momentum, but did not add materially new information beyond the earnings release. Article: First American Financial Corp (FAF) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Some research notes on upcoming earnings estimates were published, but they appear to be routine analyst commentary rather than a major new driver for FAF shares. Article: What is Zacks Research’s Estimate for FAF Q1 Earnings?

Institutional Investors Weigh In On First American Financial

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Boston Partners boosted its position in First American Financial by 8.9% during the third quarter. Boston Partners now owns 6,133,594 shares of the insurance provider’s stock worth $393,690,000 after acquiring an additional 500,649 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in First American Financial by 4,485,375.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider’s stock valued at $355,508,000 after acquiring an additional 5,786,134 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of First American Financial by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider’s stock worth $279,529,000 after purchasing an additional 245,279 shares during the period. Capital Research Global Investors boosted its holdings in shares of 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 purchasing an additional 109,242 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of 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 purchasing an additional 19,752 shares during the last quarter. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

First American Financial Stock Up 8.9%

The firm has a market cap of $7.65 billion, a price-to-earnings ratio of 10.40, a PEG ratio of 0.67 and a beta of 1.23. The firm has a fifty day moving average price of $68.38 and a 200-day moving average price of $65.97.

First American Financial (NYSE:FAF) last released its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 EPS for the quarter, beating the consensus estimate of $1.80 by $0.28. First American Financial had a return on equity of 13.32% and a net margin of 9.33%.The firm had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.03 billion. During the same period in the prior year, the firm posted $1.53 earnings per share. The business’s quarterly revenue was up 15.0% compared to the same quarter last year. Equities research analysts anticipate that First American Financial Corporation will post 6.74 earnings per share for the current fiscal year.

First American Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Monday, June 8th. First American Financial’s dividend payout ratio (DPR) is 33.79%.

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.