What Analysts Are Saying About First American Financial Stock

Across the recent three months, 4 analysts have shared their insights on First American Financial FAF, 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.

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.

Analyzing Analyst Ratings: A Detailed Breakdown

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.

Key Insights:

• 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.
• 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.
• 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.

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.

Stay up to date on First American Financial analyst ratings.

Get to Know First American Financial Better

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.

First American Financial's Economic Impact: An Analysis

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.

The Basics of Analyst Ratings

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.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.