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

First American Financial Corporation (NYSE:FAF) shares hit a new 52-week high 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 trading hands. The stock had previously closed at $68.96.

Other equities analysts also recently issued reports about the company. Stephens restated an “overweight” rating and issued a $84.00 price target on shares of First American Financial in a research note on Friday, June 12th. Barclays upped their price objective on First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a research report on Tuesday, July 7th. Zacks Research downgraded First American Financial from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. Benchmark assumed coverage on First American Financial in a research report on Tuesday, July 21st. They issued a “buy” rating and a $85.00 target price on the stock. Finally, Truist Financial raised their target price on First American Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a research report on Friday, April 24th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, First American Financial has a consensus rating of “Moderate Buy” and a consensus price target of $84.60.

Insiders Place Their Bets

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of the 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 directly owned 29,635 shares in the company, valued at approximately $2,033,850.05. This trade represents a 16.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 3.50% of the company’s stock.

Key First American Financial News

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

Several hedge funds and other institutional investors have recently modified their holdings of FAF. Northwestern Mutual Wealth Management Co. lifted its position in First American Financial by 4,485,375.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider’s stock valued at $355,508,000 after purchasing an additional 5,786,134 shares in the last quarter. Norges Bank purchased a new stake in First American Financial in the fourth quarter worth about $75,011,000. Mendon Capital Advisors Corp purchased a new stake in First American Financial in the first quarter worth about $71,680,000. Arrowstreet Capital Limited Partnership raised its stake in shares of First American Financial by 469.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,284,417 shares of the insurance provider’s stock worth $77,438,000 after buying an additional 1,058,949 shares during the period. Finally, Manning & Napier Advisors LLC bought a new position in shares of First American Financial in the fourth quarter worth about $63,693,000. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

First American Financial Stock Up 8.9%

The stock has a market cap of $7.65 billion, a P/E ratio of 10.40, a P/E/G ratio of 0.73 and a beta of 1.23. The firm has a 50 day moving average price of $68.38 and a 200 day moving average price of $65.97.

First American Financial (NYSE:FAF) last announced its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.80 by $0.28. The company had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.03 billion. First American Financial had a return on equity of 13.32% and a net margin of 9.33%.The firm’s revenue was up 15.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.53 EPS. Equities analysts predict that First American Financial Corporation will post 6.91 earnings per share for the current fiscal year.

First American Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were issued a dividend of $0.55 per share. The ex-dividend date of this dividend was Monday, June 8th. This represents a $2.20 annualized dividend and a yield of 2.9%. First American Financial’s payout ratio is currently 30.47%.

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.