First American Financial Stock (NYSE: FAF)

First American Financial (NYSE:FAF) Stock

First American Financial

First American Financial Corp is a financial services business providing insurance through two segments: title insurance and related services and Home warranty. Title insurance and related services include real estate insurance, property closing services, third-party handling of real estate funds (escrow), risk mitigation, real estate data products, and related real estate transaction services. The home warranty segment provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. Nearly all the company's revenue comes from the title insurance and related services segment in the United States.

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The Travelers Companies, Inc. (NYSE: TRV) is set to report third-quarter 2024 earnings on Oct. 17. TRV delivered an earnings surprise in two of the last four quarters and missed twice, the average beat being 7.47%.

Travelers Gears Up to Report Q3 Earnings: What&#39;s in the Cards?

SIGI

First American Financial (NYSE: FAF) reports a second-quarter 2024 operating income per share of $1.27, which beat the Zacks Consensus Estimate by 12.4%. The bottom line decreased 5.9% year over year.

First American Q2 Earnings Top, Revenues Miss Estimates

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First American Financial (NYSE: FAF) is poised to grow, given the increased demand among millennials for first-time home purchases. The expansion of its valuation and data businesses, as well as strength in commercial business and technological upgrades, is expected.

Here&#39;s Why Wait &amp; See Style Is Apt for First American

First American Corporation (New) Common Stock

First American Financial Corp

FIRST AMERICANO FINCL CP by First Americano Financial Corp. (Elizabeth, NJ)

Across the recent three months, 4 analysts have shared their insights on First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>), expressing a variety of opinions spanning from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $76.75, a high estimate of $80.00, and a low estimate of $74.00. This current average is unchanged from the previous average price target. 
<img src="https://www.benzinga.com/files/images/story/2025/1739883656_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The standing of First American Financial among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Market Perform</td>
<td>$75.00</td>
<td>$74.00</td>
</tr>
<tr>
<td>John Campbell</td>
<td>Stephens &amp; Co.</td>
<td>Raises</td>
<td>Overweight</td>
<td>$78.00</td>
<td>$73.00</td>
</tr>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$74.00</td>
<td>$80.00</td>
</tr>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$80.00</td>
<td>$80.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First American Financial. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of First American Financial compared to the broader market.</li>
<li>Price Targets: Gaining insights, analysts provide estimates for the future value of First American Financial's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
To gain a panoramic view of First American Financial's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/FAF/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on First American Financial analyst ratings.</a>
<h2>Get to Know First American Financial Better</h2>
First American Financial Corp is a financial services business providing insurance through two segments: title insurance and related services and Home warranty. Title insurance and related services include real estate insurance, property closing services, third-party handling of real estate funds (escrow), risk mitigation, real estate data products, and related real estate transaction services. The home warranty segment provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. Nearly all the company's revenue comes from the title insurance and related services segment in the United States.
<h3>First American Financial's Economic Impact: An Analysis</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: First American Financial's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -5.07%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: First American Financial's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -7.4%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): First American Financial's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.1%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): First American Financial's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.66%, the company may face hurdles in achieving optimal financial performance.
Debt Management: First American Financial's debt-to-equity ratio surpasses industry norms, standing at 0.58. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Basics of Analyst Ratings</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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What Analysts Are Saying About First American Financial Stock

Keefe, Bruyette &amp; Woods analyst Bose George maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Market Perform and raises the price target from $74 to $75.

Price Target

Keefe, Bruyette & Woods Maintains Market Perform on First American Financial, Raises Price Target to $75

Stephens &amp; Co. analyst John Campbell maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Overweight and raises the price target from $73 to $78.

Stephens & Co. Maintains Overweight on First American Financial, Raises Price Target to $78

General

First American Financial shares are trading lower. The company reported Q4 financial results.

First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) reported quarterly earnings of $1.35 per share which beat the analyst consensus estimate of $1.10 by 22.73 percent. This is a 95.65 percent increase over earnings of $0.69 per share from the same period last year. The company reported quarterly sales of $1.69 billion which beat the analyst consensus estimate of $1.62 billion by 4.18 percent. This is a 17.91 percent increase over sales of $1.43 billion the same period last year.

First American Financial Q4 Adj EPS $1.35 Beats $1.10 Estimate, Sales $1.69B Beat $1.62B Estimate

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Earnings Scheduled For February 12, 2025

First American Financial's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) short percent of float has fallen 18.59% since its last report. The company recently reported that it has 1.26 million shares sold short, which is 1.27% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.45 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>First American Financial Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1737387918_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for First American Financial has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing First American Financial's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, First American Financial's peer group average for short interest as a percentage of float is 2.06%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into First American Financial's Recent Short Interest

Keefe, Bruyette &amp; Woods analyst Bose George maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Market Perform and lowers the price target from $80 to $74.

Keefe, Bruyette & Woods Maintains Market Perform on First American Financial, Lowers Price Target to $74

5 analysts have shared their evaluations of First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $73.6, with a high estimate of $80.00 and a low estimate of $70.00. This current average reflects an increase of 6.67% from the previous average price target of $69.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1733846452_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
A clear picture of First American Financial's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$80.00</td>
<td>$80.00</td>
</tr>
<tr>
<td>John Campbell</td>
<td>Stephens &amp; Co.</td>
<td>Raises</td>
<td>Overweight</td>
<td>$73.00</td>
<td>$66.00</td>
</tr>
<tr>
<td>Terry Ma</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$72.00</td>
<td>$70.00</td>
</tr>
<tr>
<td>Mark Hughes</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$73.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Terry Ma</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$70.00</td>
<td>$61.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to First American Financial. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of First American Financial compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of First American Financial's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into First American Financial's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/FAF/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on First American Financial analyst ratings.</a>
<h2>Discovering First American Financial: A Closer Look</h2>
First American Financial Corp is a financial services business providing insurance through two segments: title insurance and related services and Home warranty. Title insurance and related services include real estate insurance, property closing services, third-party handling of real estate funds (escrow), risk mitigation, real estate data products, and related real estate transaction services. The home warranty segment provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. Nearly all the company's revenue comes from the title insurance and related services segment in the United States.
<h3>First American Financial's Financial Performance</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Decline in Revenue: Over the 3 months period, First American Financial faced challenges, resulting in a decline of approximately -5.07% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: First American Financial's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -7.4%, the company may face hurdles in effective cost management.
Return on Equity (ROE): First American Financial's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -2.1%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.66%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: First American Financial's debt-to-equity ratio surpasses industry norms, standing at 0.58. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Basics of Analyst Ratings</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

5 Analysts Have This To Say About First American Financial

Keefe, Bruyette &amp; Woods analyst Bose George downgrades First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) from Outperform to Market Perform and maintains the price target from $80 to $80.

Downgrades

Keefe, Bruyette & Woods Downgrades First American Financial to Market Perform, Maintains Price Target to $80

Stephens &amp; Co. analyst John Campbell maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Overweight and raises the price target from $66 to $73.

Stephens & Co. Maintains Overweight on First American Financial, Raises Price Target to $73

Barclays analyst Terry Ma maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Equal-Weight and raises the price target from $70 to $72.

Barclays Maintains Equal-Weight on First American Financial, Raises Price Target to $72

Truist Securities analyst Mark Hughes maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Buy and raises the price target from $68 to $73.

Truist Securities Maintains Buy on First American Financial, Raises Price Target to $73

First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) reported quarterly earnings of $1.34 per share which beat the analyst consensus estimate of $1.14 by 17.54 percent. This is a 9.84 percent increase over earnings of $1.22 per share from the same period last year. The company reported quarterly sales of $1.406 billion which missed the analyst consensus estimate of $1.474 billion by 4.64 percent. This is a 5.06 percent decrease over sales of $1.481 billion the same period last year.

Earnings Misses

First American Financial Q3 2024 Adj. EPS $1.34 Beats $1.14 Estimate, Sales $1.406B Miss $1.474B Estimate

First American Financial's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) short percent of float has fallen 25.5% since its last report. The company recently reported that it has 1.09 million shares sold short, which is 1.11% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.4 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>First American Financial Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729012522_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for First American Financial has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing First American Financial's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, First American Financial's peer group average for short interest as a percentage of float is 1.84%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into First American Financial's Recent Short Interest

The Travelers Companies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/trv#NYSE">TRV</a>) is set to report third-quarter 2024 earnings on Oct. 17. TRV delivered an earnings surprise in two of the last four quarters and missed twice, the average beat being 7.47%.
<h2>Factors to Consider</h2>
Travelers&#39; third-quarter results are likely to benefit from solid performance across its three segments.
Better pricing, solid renewal rate change, strong retention and exposure growth are likely to have aided premiums in the to-be-reported quarter. The Zacks Consensus Estimate is currently pegged at $10.5 billion, indicating an increase of 8.9% from the year-ago reported number. We estimate premiums to increase 8.6% to $10.5 billion.
Investment results are likely to benefit from a higher long-term average yield, a higher average level of fixed maturity investments, reliable terms from growing fixed income portfolio and higher returns from non-fixed income portfolio. The Zacks Consensus Estimate is currently pegged at $883 million, implying an increase of 14.8% from the year-ago reported number. We estimate net investment income to increase 13% to $868.7 million.
The Personal Insurance segment is likely to have benefited from increases in the automobile and homeowners and other product lines, strong retention rates and positive renewal premium changes. The Zacks Consensus Estimate is currently pegged at $4.2 billion, indicating an increase of 10.2% from the year-ago reported number. We estimate earned premiums at Personal Insurance to be $4 billion, suggesting an improvement of 7% from the year-ago reported figure.
An increase in net written premiums coupled with higher net investment income and other revenues is likely to have aided the top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is currently pegged at $11.68 billion, indicating a 9.1% increase from the year-ago reported figure.
Despite catastrophe losses, better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is expected to have led to an improvement in the combined ratio. We estimate the combined ratio to be 100.3. The Zacks Consensus Estimate is currently pegged at 98, indicating an improvement of 300 basis points from the year-ago reported number.
However, expenses are expected to have risen on higher claims and claim adjustment expenses, amortization of deferred acquisition costs, general and administrative expenses, as well as interest expenses. We estimate expenses to increase 4.1% in the to-be-reported quarter to $10.6 billion.&nbsp; 
Continued share buybacks are anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for third-quarter 2024 earnings per share is pegged at $3.76, suggesting an increase of 92.8% from the year-ago reported figure.
<h2>What the Zacks Model Unveils</h2>
Our proven model does not conclusively predict an earnings beat for Travelers this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Travelers has an Earnings ESP of -9.26%. This is because the Most Accurate Estimate of $3.41 is pegged lower than the Zacks Consensus Estimate of $3.76.
<div class="chart_embed">
<h3>The Travelers Companies, Inc. Price and EPS Surprise</h3>
<img alt="The Travelers Companies, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/1d/1728904143.png" style="height:263px; width:545px" title="" />
The Travelers Companies, Inc. price-eps-surprise | The Travelers Companies, Inc. Quote
Zacks Rank: Travelers currently carries a Zacks Rank #3.
</div>
<h2>Stocks to Consider</h2>
Here are three P&amp;C insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Arch Capital Group (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acgl#NASDAQ">ACGL</a>) has an Earnings ESP of +5.14% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.82, indicating a year-over-year decrease of 21.2%.
ACGL&#39;s earnings beat estimates in each of the last four reported quarters.
First American Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/faf#NYSE">FAF</a>) has an Earnings ESP of +1.77% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.15, indicating a year-over-year decrease of 5.7%.
FAF&#39;s earnings beat estimates in two of the last four reported quarters while missing in the other two.
American Financial Group, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afg#NYSE">AFG</a>) has an Earnings ESP of +1.91% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.51, implying an increase of 2.4% from the year-ago quarter&#39;s reported figure.
AFG&#39;s earnings beat estimates in two of the last four reported quarters while missing in the other two.
<a href="https://www.zacks.com/stock/news/2350077/travelers-gears-up-to-report-q3-earnings-what-s-in-the-cards?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2350077">To read this article on Zacks.com click here.</a>

Travelers Gears Up to Report Q3 Earnings: What's in the Cards?

Barclays analyst Terry Ma maintains First American Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) with a Equal-Weight and raises the price target from $61 to $70.

Barclays Maintains Equal-Weight on First American Financial, Raises Price Target to $70

<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.firstam.com&amp;esheet=54126266&amp;newsitemid=20240923810819&amp;lan=en-US&amp;anchor=First+American+Financial+Corporation&amp;index=1&amp;md5=70ff5a7d15f2af52f7e408adc440e753">First American Financial Corporation</a> (NYSE: <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.firstam.com%2Finvestor&amp;esheet=54126266&amp;newsitemid=20240923810819&amp;lan=en-US&amp;anchor=FAF&amp;index=2&amp;md5=42d3b12043586201743f4291dde8c059">FAF</a>), a premier provider of title, settlement and risk solutions for real estate transactions, today announced the pricing of a public offering of $450 million of its 5.450 percent senior notes due 2034. The offering is expected to close on September 30, 2024, subject to customary conditions.
The notes will be general senior unsecured obligations of the company and will rank equally in right of payment with the company's existing and future senior unsecured indebtedness. Interest will be paid semi-annually on March 30 and September 30, beginning March 30, 2025. The company intends to use the net proceeds from the sale of the notes for repayment at maturity of the company's 4.60% senior notes due 2024 and for general corporate purposes, which may include, among other possible uses, acquisitions, funding for working capital, repurchase of the company's capital stock and other capital expenditures. The company may also use the net proceeds for temporary investments until it needs them for general corporate purposes.

Offerings

Reported Earlier, First American Financial Raised $450M Via Senior Notes Offering For Debt Repayment

The cash dividend is payable on September 27, 2024 to shareholders of record as of September 20, 2024.

First American Financial Boosts Quarterly Cash Dividend By 2% From $0.53 To $0.54 Per Share

First American Financial's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAF#NYSE">FAF</a>) short percent of float has fallen 14.09% since its last report. The company recently reported that it has 1.27 million shares sold short, which is 1.28% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.55 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>First American Financial Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725976817_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for First American Financial has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing First American Financial's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, First American Financial's peer group average for short interest as a percentage of float is 2.05%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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