Alert: Negative Investment/Fundamental Signals (3/15/24)-First American Financial Corp (NYSE: FAF)

Recent extremely meaningful negative changes in investment behavior have impacted First American Financial Corp (NYSE: FAF): negative upside/downside volume developed, and the stock fell on very heavy volume.

First American Financial Corp (NYSE: FAF) has recently experienced meaningful negative changes in fundamentals: the stock’s power rating fell below 50, and significant quarterly earnings deceleration occurred.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

Current PriceTarget Research Rating

With future capital returns forecasted to be above the cost of capital, FAF is expected to be a modest Value Builder.

First American Financial has a current Value Trend Rating of C (Neutral). The Value Trend Rating reflects highly consistent signals from PTR’s two proprietary measures of a stock’s attractiveness. First American Financial has a neutral Appreciation Score of 55 and a neutral Power Rating of 48, with the Neutral Value Trend Rating the result.

Recent Price Action

First American Financial Corp (NYSE: FAF) stock closed at $55.25 on 3/15/24 after a slight decline of -0.4%. Moreover, exceptionally high trading volume at 477% of normal accompanied the decline. The stock has declined -1.7% during the last week and has performed in line with the market over the last nine months.