First American Financial Corporation (FAF)

Over the past six months, FAF's stock was upgraded to "Buy" in October 2025 due to attractive valuation and improved commercial momentum. The company reported strong Q3 2025 adjusted EPS and revenue, leading to a rise in after-hours trading. In November 2025, Jeffrey Dailey was appointed to the board, and a quarterly cash dividend was declared. In December 2025, the Home Price Index report showed nearly flat national house prices for 2025. In January 2026, the stock experienced fluctuations, including a decline due to broader market concerns, despite a positive earnings outlook. As of February 6, 2026, the closing stock price was $67.34.

The demand for First American Financial Corp.'s products and services is closely linked to the cyclical nature of the real estate market. Factors such as interest rates and overall economic conditions significantly influence real estate transaction volumes, which directly impact the company's core title insurance business. The home warranty segment's revenues are also influenced by residential purchase market activity.

First American Financial Corporation is a financial services company providing title insurance and settlement services to the real estate and mortgage industries. It operates in the Finance sector, specifically in the Title Insurance and Property & Casualty Insurance industries, offering services such as title insurance, property data, home warranty products, and banking services.

First American Financial Corporation operates throughout the United States and internationally. Domestically, it operates in all states except Iowa, where it provides abstracts of title. Its international operations extend to Canada, the UK, South Korea, Australia, New Zealand, the Bahama Islands, Guam, Hong Kong, Ireland, Mexico, Puerto Rico, and the U.S. Virgin Islands.

First American Financial Corporation has maintained a positive brand reputation, particularly regarding its workplace culture and corporate responsibility. In 2025, the company was recognized as one of the "PEOPLE Companies that Care." In 2024, First American was named one of the "100 Best Companies to Work For" by Great Place to Work® and Fortune Magazine for the ninth consecutive year. The company also achieved a top score on the 2023-2024 Human Rights Campaign Foundation's Corporate Equality Index. Furthermore, its Canadian subsidiary, FCT, has been recognized as a "Best Workplace™ in Canada" for 11 years, and its Indian subsidiary, FAI, was named one of India's Best Companies to Work for the third consecutive year.

Institutional investors hold a significant majority of First American Financial Corp. shares, accounting for approximately 89.05% to 89.66% of the company's ownership. Major institutional owners include The Vanguard Group, Inc., BlackRock, Inc., and FMR LLC. The largest individual insider shareholder is Parker S. Kennedy, who owns 5.64% of the company's shares.