Keefe, Bruyette & Woods Rates First American Financial (FAF) buy

Keefe, Bruyette & Woods has reiterated its buy rating on First American Financial Corporation (NYSE:FAF), setting a price target of $84. This reaffirmation by analyst Bose George was made on June 25, 2026. Shares of First American Financial traded around $67.25 on Friday.

Other Institutional Activity in First American Financial

Several institutional investors have made moves in their holdings of First American Financial. BlackRock, Inc. increased its holdings by 70,737 shares, bringing its total to about 9.23 million shares valued at approximately $556.23 million, marking a 0.8% increase. FMR LLC made a slight reduction of 40 shares, maintaining its total at about 9.16 million shares worth $552.30 million. Boston Partners reduced its position by 167,507 shares, ending with 5.75 million shares valued at $346.29 million, a 2.8% decrease. Vanguard Portfolio Management LLC opened a new position with 5.22 million shares valued at $314.47 million. Dimensional Fund Advisors LP increased its stake by 245,279 shares to a total of 4.64 million shares, valued at $279.53 million, reflecting a 5.6% increase.

First American Financial Corporation Stock Down 3.6%

Shares of First American Financial Corporation (NYSE:FAF) traded near $67.25 on Friday. The company has a market cap of approximately $6.67 billion and a P/E ratio of 10.06, with a forward P/E of 9.07. Its beta is 1.264, indicating a higher volatility compared to the market. The stock's 52-week range is between $53.09 and $71.47, with a 50-day moving average of $67.46 and a 200-day moving average of $64.51.

Recent Earnings

First American Financial reported revenue of approximately $7.71 billion, with a revenue growth rate of 16.2%. The company achieved an EPS of $6.50, with a net margin of 8.73% and a return on equity of 12.8%. The next earnings report is scheduled for July 22, 2026.

Dividend

First American Financial pays an annual dividend of $2.20 per share, resulting in a yield of 3.36%. The dividend payout ratio stands at 33.69%.

Insider Buying and Selling at First American Financial Corporation

Recent insider transactions at First American Financial include both purchases and sales. On June 22, 2026, Dennis Gilmore acquired 14,570 shares. On the same day, Lisa Cornehl, SVP and Chief Legal Officer, sold 160 shares at an average price of $68.63. Other sales on June 22 included 619 shares by EVP and CFO Matthew Wajner and 2,372 shares by CEO Mark Edward Seaton, both at the same price.

Analysts Set New Price Targets

On June 25, 2026, Keefe, Bruyette & Woods maintained its buy rating on First American Financial with a price target of $84. Other analysts, including Stephens & Co. and Barclays, have also maintained buy ratings with targets of $84 and $80, respectively. The consensus among analysts is a strong buy, with a mean target price of $85.60 based on five opinions.

About First American Financial Corporation

First American Financial Corporation, headquartered in Santa Ana, California, provides financial services through its Title Insurance and Services, and Home Warranty segments. The company issues title insurance policies and offers related services for residential and commercial properties. It also provides home warranty products to cover systems and appliances in homes. Founded in 1889, First American operates in the United States and internationally, with a workforce of over 19,000 employees.

Bottom Line

Keefe, Bruyette & Woods' reaffirmation of a buy rating with an $84 target on First American Financial highlights ongoing confidence in the company's performance. Investors keep a close eye on such analyst ratings as they provide insights into potential stock movements. This report serves as a reminder that analyst opinions are based on current data and market conditions.