First American Financial (FAF) Stock Price, News & Analysis

Company Overview

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. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, document generation services, mortgage loans subservicing, and related products and services, as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in various states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, New Zealand, South Korea, and internationally. The Home Warranty segment provides home warranty products, including residential service contracts that cover residential systems, such as heating and air conditioning systems, and various appliances against failures that occur as the result of normal usage during the coverage period. This segment operates in various states and the District of Columbia. The company was founded in 1889 and is headquartered in Santa Ana, California.

Key Stats

• Today's Range: $66.17 to $66.67
• 50-Day Range: $62.49 to $67.56
• 52-Week Range: $51.60 to $67.88
• Volume: 198,557 shs
• Average Volume: 669,902 shs
• Market Capitalization: $6.86 billion
• P/E Ratio: 74.80
• Dividend Yield: 3.24%
• Price Target: $72.50
• Consensus Rating: Moderate Buy

First American Financial Stock Analysis - MarketRank™

First American Financial scored higher than 89% of companies evaluated by MarketBeat, and ranked 165th out of 916 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

First American Financial has received a consensus rating of Moderate Buy. The company's average rating score is 2.80, and is based on 4 buy ratings, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

First American Financial has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 31.68%

Earnings Growth

Earnings for First American Financial are expected to grow by 31.68% in the coming year, from $4.04 to $5.32 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of First American Financial is 74.74, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 127.15.

Price to Earnings Ratio vs. Sector

The P/E ratio of First American Financial is 74.74, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 46.66.

Price to Book Value per Share Ratio

First American Financial has a P/B Ratio of 1.34. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.96% of the float of First American Financial has been sold short.

Short Interest Ratio / Days to Cover

First American Financial has a short interest ratio ("days to cover") of 1.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in First American Financial has recently decreased by 12.89%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

First American Financial pays a meaningful dividend of 3.26%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

First American Financial has been increasing its dividend for 15 years.

Dividend Coverage

The dividend payout ratio of First American Financial is 242.70%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, First American Financial will have a dividend payout ratio of 40.60% next year. This indicates that First American Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.6 / 5
• Environmental Score: -0.52

Percentage of Shares Shorted

0.96% of the float of First American Financial has been sold short.

Short Interest Ratio / Days to Cover

First American Financial has a short interest ratio ("days to cover") of 1.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in First American Financial has recently decreased by 12.89%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.8 / 5
• News Sentiment: 1.04

News Sentiment

First American Financial has a news sentiment score of 1.04. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.77 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 16 news articles for First American Financial this week, compared to 6 articles on an average week.

Search Interest

Only 2 people have searched for FAF on MarketBeat in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

MarketBeat Follows

Only 1 people have added First American Financial to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, First American Financial insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 3.70% of the stock of First American Financial is held by insiders.

Percentage Held by Institutions

89.05% of the stock of First American Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

FAF Stock Analysis - Frequently Asked Questions

How have FAF shares performed this year?

First American Financial's stock was trading at $64.44 at the beginning of the year. Since then, FAF stock has increased by 3.2% and is now trading at $66.52.
View the best growth stocks for 2024 here.

How were First American Financial's earnings last quarter?

First American Financial Co. (NYSE:FAF) announced its earnings results on Wednesday, October, 23rd. The insurance provider reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $0.19. The firm's revenue for the quarter was down 5.1% on a year-over-year basis.

Who are First American Financial's major shareholders?

First American Financial's top institutional investors include FMR LLC (4.86%), HG Vora Capital Management LLC (3.69%), State Street Corp (3.22%) and Victory Capital Management Inc. (2.42%). Insiders that own company stock include Christopher Michael Leavell and Steven A Adams.
View institutional ownership trends.

How do I buy shares of First American Financial?

Shares of FAF stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of First American Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that First American Financial investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Broadcom (AVGO), Exxon Mobil (XOM), Walmart (WMT) and JPMorgan Chase & Co. (JPM).

Company Calendar

• Ex-Dividend for 9/27 Dividend: 9/20/2024
• Dividend Payable: 9/27/2024
• Last Earnings: 10/23/2024
• Today: 11/21/2024
• Ex-Dividend for 12/16 Dividend: 12/09/2024
• Dividend Payable: 12/16/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/05/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Title insurance
• Sub-Industry: Property & Casualty Insurance
• Current Symbol: NYSE:FAF
• CUSIP: 31847R10
• CIK: 1472787
• Web: www.firstam.com
• Phone: (714) 250-3000
• Fax: 714-541-6372
• Employees: 19,210
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $72.50
• High Stock Price Target: $73.00
• Low Stock Price Target: $72.00
• Potential Upside/Downside: +9.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.80
• Research Coverage: 5 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.89
• Trailing P/E Ratio: 74.44
• Forward P/E Ratio: 16.40
• P/E Growth: N/A
• Net Income: $216.80 million
• Net Margins: 1.58%
• Pretax Margin: 1.77%
• Return on Equity: 7.95%
• Return on Assets: 2.47%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 1.10
• Quick Ratio: 1.10

Sales & Book Value

• Annual Sales: $6.00 billion
• Price / Sales: 1.14
• Cash Flow: $5.77 per share
• Price / Cash Flow: 11.49
• Book Value: $49.62 per share
• Price / Book: 1.34

Miscellaneous

• Outstanding Shares: 103,000,000
• Free Float: 99,193,000
• Market Cap: $6.82 billion
• Optionable: Optionable
• Beta: 1.29