FAF First American Corporation

OLD National Bancorp IN reduced its stake in First American Financial Corporation (NYSE:FAF) by 48.2% in the third quarter, selling 36,800 shares and retaining 39,536 shares valued at $2.54 million. Despite the sale, institutional investors collectively own a significant 89.05% of FAF. The company recently reported strong quarterly earnings, beating expectations, and analysts currently rate the stock as a "Hold" with a consensus price target of $76.50.

Keefe, Bruyette & Woods has maintained an Outperform recommendation for First American Financial (FAF). Analysts project a 22.59% upside for FAF with an average one-year price target of $78.34/share. Institutional ownership of FAF remains strong, with key firms like Boston Partners and Ariel Investments increasing their holdings.

According to the First American Data & Analytics November 2025 Home Price Index (HPI) report, national house price growth has stabilized in the low single digits. Annual house price appreciation remained below 1 percent for the fourth consecutive month in November, with a month-over-month change of -0.2 percent and a year-over-year change of +0.7 percent. Chief Economist Mark Fleming noted a growing divide in appreciation levels between Rust Belt and Sun Belt markets, with slower price growth offering affordability breathing room for buyers as wage growth exceeds house price growth.

Options traders are showing significant interest in First American Financial Corporation (FAF), particularly concerning the Jan. 16, 2026 $70.00 Put, which exhibits high implied volatility. Despite this, analysts have a positive outlook, with the stock holding a Zacks Rank #2 (Buy) and recent upward revisions in earnings estimates, suggesting a potential trading opportunity. This divergence could indicate that options traders are anticipating a large price movement, possibly to sell premium against the perceived volatility.

Corient Private Wealth LLC increased its stake in First American Financial (NYSE:FAF) by 5.8% in Q2, bringing their total holdings to 815,810 shares valued at $50.06 million. First American recently exceeded quarterly earnings and revenue estimates, reporting $1.70 EPS on $1.95 billion in revenue. The company maintains a market capitalization of $6.51 billion, a PE ratio of 13.74, and offers a quarterly dividend of $0.55 per share, yielding approximately 3.4%.

First American Data & Analytics' RegsData tool has been integrated into MeridianLink Mortgage, enhancing First American's technology narrative by embedding compliance checks directly into loan origination workflows. This integration potentially increases the stickiness and usage of First American's data and analytics solutions, supporting its investment story amid soft housing activity. However, the company's reliance on commercial deals and exposure to housing affordability pressures remain key risks and catalysts for its performance.