Analysts' ratings for First American Financial (NYSE:FAF) over the last quarter vary from bullish to bearish, as provided by 4 analysts.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 4 | 0 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for First American Financial, presenting an average target of $66.75, a high estimate of $72.00, and a low estimate of $63.00. Observing a downward trend, the current average is 5.65% lower than the prior average price target of $70.75.
Decoding Analyst Ratings: A Detailed Look
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Bose George | Keefe, Bruyette & Woods | Lowers | Outperform | $63.00 | $67.00 |
| John Campbell | Stephens & Co. | Lowers | Overweight | $66.00 | $72.00 |
| John Campbell | Stephens & Co. | Lowers | Overweight | $66.00 | $72.00 |
| John Campbell | Stephens & Co. | Maintains | Overweight | $72.00 | $72.00 |
Key Insights:
- 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.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of First American Financial compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for First American Financial's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of First American Financial's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on First American Financial analyst ratings.
Delving into First American Financial's Background
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.
Financial Milestones: First American Financial's Journey
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Decline in Revenue: Over the 3 months period, First American Financial faced challenges, resulting in a decline of approximately -1.49% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: First American Financial's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.28%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): First American Financial's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.97%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): First American Financial's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.3%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.48, caution is advised due to increased financial risk.
Understanding the Relevance of Analyst Ratings
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.