Zacks Research Has Optimistic Outlook of FAF Q2 Earnings

First American Financial Corporation (NYSE:FAF) – Equities researchers at Zacks Research raised their Q2 2026 EPS estimates for First American Financial in a report released on Monday, October 13th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings of $1.77 per share for the quarter, up from their prior estimate of $1.72. The consensus estimate for First American Financial’s current full-year earnings is $5.35 per share. Zacks Research also issued estimates for First American Financial’s Q3 2026 earnings at $1.52 EPS, FY2026 earnings at $5.98 EPS, Q2 2027 earnings at $1.78 EPS, Q3 2027 earnings at $1.52 EPS and FY2027 earnings at $5.78 EPS.

First American Financial (NYSE:FAF) last posted its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.40 by $0.13. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The firm had revenue of $1.84 billion during the quarter, compared to analysts’ expectations of $1.78 billion. During the same quarter in the previous year, the company posted $1.27 EPS. First American Financial’s revenue was up 14.2% on a year-over-year basis.

Several other research analysts have also recently weighed in on FAF. Wall Street Zen upgraded shares of First American Financial from a “hold” rating to a “buy” rating in a research report on Saturday, August 9th. Weiss Ratings restated a “hold (c+)” rating on shares of First American Financial in a research report on Wednesday, October 8th. Barclays boosted their price objective on shares of First American Financial from $70.00 to $71.00 and gave the stock a “cautious” rating in a research report on Monday, October 6th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of First American Financial from $77.00 to $79.00 and gave the stock an “outperform” rating in a research report on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $75.25.

First American Financial Price Performance

FAF stock opened at $60.31 on Tuesday. The company has a 50 day moving average price of $64.66 and a 200 day moving average price of $61.23. First American Financial has a fifty-two week low of $53.09 and a fifty-two week high of $70.92. The stock has a market capitalization of $6.14 billion, a PE ratio of 33.32 and a beta of 1.27.

Institutional Trading of First American Financial

Large investors have recently made changes to their positions in the company. Principal Financial Group Inc. increased its position in shares of First American Financial by 0.3% in the 1st quarter. Principal Financial Group Inc. now owns 236,876 shares of the insurance provider’s stock valued at $15,546,000 after buying an additional 794 shares in the last quarter. GAMMA Investing LLC increased its position in shares of First American Financial by 23.9% in the 1st quarter. GAMMA Investing LLC now owns 1,327 shares of the insurance provider’s stock valued at $87,000 after buying an additional 256 shares in the last quarter. Cetera Investment Advisers increased its position in shares of First American Financial by 137.8% in the 1st quarter. Cetera Investment Advisers now owns 21,091 shares of the insurance provider’s stock valued at $1,384,000 after buying an additional 12,222 shares in the last quarter. Envestnet Asset Management Inc. increased its position in shares of First American Financial by 2.8% in the 1st quarter. Envestnet Asset Management Inc. now owns 132,150 shares of the insurance provider’s stock valued at $8,673,000 after buying an additional 3,557 shares in the last quarter. Finally, SG Americas Securities LLC bought a new stake in shares of First American Financial in the 1st quarter valued at $829,000. Institutional investors own 89.05% of the company’s stock.

Insider Buying and Selling

In other news, Director Margaret M. Mccarthy sold 3,500 shares of the business’s stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $65.63, for a total value of $229,705.00. Following the completion of the transaction, the director owned 28,095 shares of the company’s stock, valued at $1,843,874.85. The trade was a 11.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 3.70% of the company’s stock.

First American Financial announced that its board has approved a share buyback plan on Wednesday, July 23rd that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the insurance provider to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

First American Financial Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 29th. Shareholders of record on Monday, September 22nd were issued a dividend of $0.55 per share. The ex-dividend date of this dividend was Monday, September 22nd. This represents a $2.20 dividend on an annualized basis and a yield of 3.6%. This is a boost from First American Financial’s previous quarterly dividend of $0.54. First American Financial’s dividend payout ratio (DPR) is presently 121.55%.

First American Financial Company Profile

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.