Zacks Research Has Negative Forecast for FAF Q1 Earnings

First American Financial Corporation (NYSE:FAF) – Stock analysts at Zacks Research dropped their Q1 2027 earnings per share (EPS) estimates for First American Financial in a research note issued on Monday, July 20th. Zacks Research analyst Team now anticipates that the insurance provider will earn $1.26 per share for the quarter, down from their previous forecast of $1.31. Zacks Research 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 2027 earnings at $1.92 EPS and Q2 2028 earnings at $2.03 EPS.

Several other brokerages have also commented on FAF. Benchmark initiated coverage on First American Financial in a research note on Monday. They set a “buy” rating and a $85.00 price target on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of First American Financial in a research note on Monday. Barclays upped their price objective 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. Wall Street Zen cut shares of First American Financial from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Finally, Keefe, Bruyette & Woods cut their target price on shares of 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. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $84.20.

First American Financial Trading Down 0.3%

Shares of FAF stock opened at $71.54 on Wednesday. First American Financial has a twelve month low of $56.20 and a twelve month high of $73.50. The stock has a market capitalization of $7.29 billion, a price-to-earnings ratio of 10.99, a P/E/G ratio of 0.70 and a beta of 1.23. The stock has a fifty day simple moving average of $68.11 and a two-hundred day simple moving average of $65.79.

First American Financial (NYSE:FAF) last issued its earnings results on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share for the quarter, beating analysts’ consensus estimates of $1.06 by $0.27. The business had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.80 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.First American Financial’s revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.84 EPS.

First American Financial Dividend Announcement

The company also recently declared 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 3.1%. The ex-dividend date was Monday, June 8th. First American Financial’s dividend payout ratio (DPR) is currently 33.79%.

Insider Transactions at First American Financial

In other 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 value 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Margaret M. Mccarthy sold 6,630 shares of the business’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 transaction, the director owned 24,024 shares of the company’s stock, valued at approximately $1,695,854.16. This trade represents 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 company insiders.

Hedge Funds Weigh In On First American Financial

Institutional investors and hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC raised its position in First American Financial by 9.6% during the second quarter. GAMMA Investing LLC now owns 1,696 shares of the insurance provider’s stock valued at $116,000 after acquiring an additional 148 shares in the last quarter. Equitable Trust Co. boosted its position in First American Financial by 2.3% in the 1st quarter. Equitable Trust Co. now owns 6,980 shares of the insurance provider’s stock worth $421,000 after purchasing an additional 160 shares in the last quarter. Naples Global Advisors LLC boosted its position in First American Financial by 2.4% in the 4th quarter. Naples Global Advisors LLC now owns 7,500 shares of the insurance provider’s stock worth $461,000 after purchasing an additional 175 shares in the last quarter. Inscription Capital LLC grew its stake in shares of First American Financial by 2.4% during the 4th quarter. Inscription Capital LLC now owns 7,639 shares of the insurance provider’s stock worth $469,000 after purchasing an additional 181 shares during the period. Finally, Danske Bank A S grew its stake in shares of First American Financial by 28.6% during the 4th quarter. Danske Bank A S now owns 900 shares of the insurance provider’s stock worth $55,000 after purchasing an additional 200 shares during the period. 89.05% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about First American Financial

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

• Positive Sentiment: First American Financial is heading into Q2 earnings with a favorable setup after its last reported quarter beat expectations on both profit and revenue, suggesting the business can still outperform consensus. First American Financial stock and earnings details
• Neutral Sentiment: Analysts are broadly modeling continued earnings growth over the next several years, with estimates still implying higher profits in FY2027 and FY2028, which supports the long-term outlook. First American Financial analyst estimates
• Neutral Sentiment: Investors are also watching previews of the upcoming Q2 earnings report, which could become the main catalyst for the stock if results or guidance differ meaningfully from expectations. Article: What to expect from First American Financial’s (FAF) Q2 earnings
• Negative Sentiment: Zacks Research lowered its FY2026, FY2027, FY2028, and several quarterly EPS estimates for First American Financial, which may have pressured sentiment by signaling slightly softer profitability expectations. First American Financial analyst estimate cuts

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.