Zacks Research Issues Pessimistic Outlook for FAF Earnings

First American Financial Corporation (NYSE:FAF) – Research analysts at Zacks Research lowered their Q2 2026 EPS estimates for First American Financial in a report released on Wednesday, March 4th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $1.79 for the quarter, down from their previous forecast of $1.80. 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 $1.77 EPS, Q4 2026 earnings at $1.67 EPS, FY2027 earnings at $6.68 EPS and FY2028 earnings at $7.30 EPS.

First American Financial (NYSE:FAF) last announced its quarterly earnings data on Wednesday, February 11th. The insurance provider reported $1.99 EPS for the quarter, beating analysts’ consensus estimates of $1.49 by $0.50. The company had revenue of $2 billion for the quarter, compared to the consensus estimate of $1.80 billion. First American Financial had a net margin of 8.34% and a return on equity of 11.92%. The company’s quarterly revenue was up 21.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.35 EPS.

Other research analysts also recently issued research reports about the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of First American Financial in a report on Friday, December 26th. Wall Street Zen lowered shares of First American Financial from a “buy” rating to a “hold” rating in a research note on Saturday, February 21st. Truist Financial raised their price objective on shares of First American Financial from $76.00 to $82.00 and gave the stock a “buy” rating in a report on Tuesday, February 17th. Stephens upgraded shares of First American Financial from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $70.00 to $81.00 in a research report on Monday. Finally, Barclays upped their target price on shares of First American Financial from $68.00 to $70.00 and gave the company an “equal weight” rating in a report on Friday, February 13th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $78.50.

First American Financial Price Performance

First American Financial stock opened at $68.97 on Friday. First American Financial has a 1-year low of $53.09 and a 1-year high of $71.47. The stock has a market cap of $7.03 billion, a PE ratio of 11.48, a P/E/G ratio of 0.72 and a beta of 1.25. The stock’s fifty day moving average is $64.50 and its two-hundred day moving average is $64.07.

First American Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 9th will be issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Monday, March 9th. First American Financial’s dividend payout ratio is presently 36.61%.

Insider Buying and Selling at First American Financial

In related news, Director Parker S. Kennedy purchased 44,841 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were purchased at an average price of $67.85 per share, with a total value of $3,042,461.85. Following the completion of the acquisition, the director directly owned 251,552 shares in the company, valued at $17,067,803.20. This represents a 21.69% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 3.70% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of FAF. Allianz Asset Management GmbH boosted its holdings in shares of First American Financial by 10.6% in the third quarter. Allianz Asset Management GmbH now owns 210,739 shares of the insurance provider’s stock valued at $13,538,000 after acquiring an additional 20,188 shares in the last quarter. Channing Capital Management LLC lifted its position in First American Financial by 16.9% in the third quarter. Channing Capital Management LLC now owns 1,547,790 shares of the insurance provider’s stock valued at $99,430,000 after purchasing an additional 224,277 shares during the period. Thrivent Financial for Lutherans boosted its holdings in First American Financial by 129.0% in the 2nd quarter. Thrivent Financial for Lutherans now owns 64,774 shares of the insurance provider’s stock valued at $3,976,000 after purchasing an additional 36,485 shares in the last quarter. AXQ Capital LP increased its position in First American Financial by 29.4% during the 2nd quarter. AXQ Capital LP now owns 10,880 shares of the insurance provider’s stock worth $668,000 after purchasing an additional 2,470 shares during the period. Finally, Pacer Advisors Inc. purchased a new position in shares of First American Financial during the 3rd quarter worth approximately $1,215,000. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

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.