First American Financial Corporation (NYSE:FAF) Given Consensus Rating of “Buy” by Analysts

First American Financial Corporation (NYSE:FAF) has been assigned an average rating of “Buy” from the six research firms that are covering the stock, Marketbeat reports. Six equities research analysts have rated the stock with a buy recommendation. The average 12-month price target among brokerages that have covered the stock in the last year is $79.00.

Several brokerages have recently weighed in on FAF. Stephens raised shares of First American Financial from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $70.00 to $81.00 in a research note on Monday, March 2nd. Wall Street Zen raised shares of First American Financial from a “hold” rating to a “buy” rating in a research report on Saturday, March 7th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of First American Financial in a research note on Friday, February 13th. Weiss Ratings restated a “buy (b-)” rating on shares of First American Financial in a report on Friday, December 26th. Finally, Barclays upgraded First American Financial from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $70.00 to $72.00 in a research report on Monday, April 6th.

First American Financial Price Performance

NYSE FAF opened at $67.23 on Tuesday. The stock’s 50-day moving average is $64.13 and its 200-day moving average is $63.24. First American Financial has a one year low of $53.09 and a one year high of $71.47. The firm has a market cap of $6.88 billion, a P/E ratio of 11.10, a P/E/G ratio of 0.68 and a beta of 1.28.

First American Financial (NYSE:FAF) last announced its quarterly earnings results on Wednesday, February 11th. The insurance provider reported $1.99 earnings per share for the quarter, beating analysts’ consensus estimates of $1.49 by $0.50. The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $1.80 billion. First American Financial had a net margin of 8.34% and a return on equity of 11.92%. The business’s revenue was up 21.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.35 earnings per share. Equities analysts anticipate that First American Financial will post 6.37 EPS for the current year.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 9th were given a dividend of $0.55 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. First American Financial’s payout ratio is presently 36.61%.

Insider Buying and Selling at First American Financial

In other First American Financial news, Director Parker S. Kennedy purchased 44,841 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were acquired at an average price of $67.85 per share, with a total value of $3,042,461.85. Following the transaction, the director owned 251,552 shares in the company, valued at $17,067,803.20. The trade was a 21.69% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.50% of the stock is owned by corporate insiders.

Institutional Trading of First American Financial

Several institutional investors and hedge funds have recently modified their holdings of the stock. Naples Global Advisors LLC boosted its position in shares of First American Financial by 2.4% during the fourth quarter. Naples Global Advisors LLC now owns 7,500 shares of the insurance provider’s stock valued at $461,000 after buying an additional 175 shares during the last quarter. Maryland State Retirement & Pension System raised its position in First American Financial by 3.9% in the 3rd quarter. Maryland State Retirement & Pension System now owns 4,850 shares of the insurance provider’s stock valued at $312,000 after buying an additional 180 shares during the last quarter. Inscription Capital LLC lifted its stake in First American Financial by 2.4% during the 4th quarter. Inscription Capital LLC now owns 7,639 shares of the insurance provider’s stock valued at $469,000 after acquiring an additional 181 shares in the last quarter. KLP Kapitalforvaltning AS boosted its holdings in First American Financial by 0.9% during the 3rd quarter. KLP Kapitalforvaltning AS now owns 21,500 shares of the insurance provider’s stock worth $1,381,000 after acquiring an additional 200 shares during the last quarter. Finally, Danske Bank A S boosted its stake in shares of First American Financial by 28.6% in the 4th quarter. Danske Bank A S now owns 900 shares of the insurance provider’s stock worth $55,000 after buying an additional 200 shares during the last quarter. 89.05% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting First American Financial

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

• Positive Sentiment: Zacks lifted multiple annual and multi?quarter EPS targets, including FY2027 to $6.83 (from $6.75), FY2028 to $7.48 (from $7.42) and FY2026 to $6.36 (from $6.34) — this suggests analysts expect stronger earnings growth ahead, which can support higher valuation. Zacks estimate revisions (MarketBeat)
• Positive Sentiment: Zacks also bumped several quarterly forecasts (examples: Q1 2027 to $1.22 from $1.14; Q1 2028 to $1.30; Q3 2026 to $1.83; Q3 2027 to $1.85; Q4 2026 to $1.76; Q4 2027 to $1.96) — raises to near?term quarters reduce downside risk to upcoming prints. Zacks quarterly estimate changes (MarketBeat)
• Neutral Sentiment: A Zacks feature considered First American as a potential “high?growth dividend stock,” highlighting dividend appeal alongside growth — useful context for income and total?return investors but not a direct catalyst. Are You Looking for a High-Growth Dividend Stock?
• Negative Sentiment: Zacks trimmed Q2 2026 EPS to $1.72 (from $1.79) — a notable near?term downgrade that could weigh on the next quarterly print and increase short?term uncertainty. Q2 2026 estimate cut (MarketBeat)
• Negative Sentiment: Zacks also reduced Q2 2027 EPS to $1.80 (from $1.86) — another mid?cycle pullback that tempers the otherwise bullish revisions and may moderate upside until clearer quarter?by?quarter momentum is visible. Q2 2027 estimate cut (MarketBeat)

About First American Financial

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.