First American Financial (NYSE:FAF) Posts Earnings Results, Beats Expectations By $0.28 EPS

First American Financial (NYSE:FAF) announced its quarterly earnings results on Wednesday. The insurance provider reported $2.08 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.28, FiscalAI reports. First American Financial had a net margin of 8.73% and a return on equity of 12.58%. The firm had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.03 billion.

First American Financial Price Performance

Shares of NYSE:FAF traded down $1.22 during mid-day trading on Wednesday, reaching $70.43. 880,675 shares of the company traded hands, compared to its average volume of 1,014,584. The company’s 50 day moving average price is $68.11 and its 200-day moving average price is $65.79. The firm has a market cap of $7.18 billion, a PE ratio of 10.82, a PEG ratio of 0.70 and a beta of 1.23. First American Financial has a 52 week low of $56.20 and a 52 week high of $73.50.

First American Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were given 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 is presently 33.79%.

Insider Buying and Selling

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial stock in a transaction that occurred on Tuesday, May 5th. The shares were 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 $2,033,850.05. The trade was a 16.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Margaret M. Mccarthy sold 6,630 shares of the company’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $70.59, for a total transaction of $468,011.70. Following the completion of the transaction, the director owned 24,024 shares of the company’s stock, valued at approximately $1,695,854.16. The trade was a 21.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 3.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Invesco Ltd. raised its holdings in First American Financial by 11.5% during the fourth quarter. Invesco Ltd. now owns 502,147 shares of the insurance provider’s stock valued at $30,852,000 after acquiring an additional 51,653 shares during the period. Corient Private Wealth LLC raised its stake in First American Financial by 14.4% during the 4th quarter. Corient Private Wealth LLC now owns 961,528 shares of the insurance provider’s stock valued at $59,076,000 after purchasing an additional 121,209 shares during the period. Mercer Global Advisors Inc. ADV raised its stake in First American Financial by 20.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 59,118 shares of the insurance provider’s stock valued at $3,632,000 after purchasing an additional 9,949 shares during the period. EP Wealth Advisors LLC purchased a new position in First American Financial in the 4th quarter worth approximately $2,694,000. Finally, Mackenzie Financial Corp lifted its holdings in First American Financial by 20.9% in the 4th quarter. Mackenzie Financial Corp now owns 30,079 shares of the insurance provider’s stock worth $1,863,000 after purchasing an additional 5,191 shares in the last quarter. Institutional investors own 89.05% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on FAF shares. Barclays increased 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 report on Tuesday, July 7th. Weiss Ratings reiterated a “buy (b)” rating on shares of First American Financial in a research note on Monday. Zacks Research cut First American Financial from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Keefe, Bruyette & Woods dropped their target price on First American Financial from $87.00 to $84.00 and set an “outperform” rating on the stock in a research report on Thursday, June 25th. Finally, Stephens restated an “overweight” rating and set a $84.00 price target on shares of First American Financial in a research note on Friday, June 12th. Seven investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $84.20.

More First American Financial News

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

• Positive Sentiment: Zacks Research raised its estimates for several future periods, including Q2 2027 to $2.03 EPS and Q4 2027 to $1.92 EPS, while also nudging Q2 2028 higher to $2.03 EPS. This suggests improving longer-term earnings expectations for First American Financial. First American Financial stock page
• Neutral Sentiment: The analyst firm maintained a Hold rating, signaling no major change in its overall view despite the estimate revisions. First American Financial stock page
• Neutral Sentiment: First American Financial is approaching its Q2 earnings update, and investors are watching closely for confirmation that recent operating trends support the current full-year consensus of about $6.74-$6.75 EPS. What to expect from First American Financial’s (FAF) Q2 earnings
• Negative Sentiment: Zacks also trimmed some near-term estimates, including FY2026 to $6.64 EPS from $6.72, Q3 2026 to $1.77 from $1.83, Q4 2026 to $1.76 from $1.78, Q1 2028 to $1.20 from $1.29, and FY2028 to $7.27 from $7.34. These reductions may be pressuring the shares. First American Financial stock page

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.