Alert: Negative Investment/Fundamental Signals (5/8/24)-First American Financial Corp (NYSE: FAF)

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First American Financial Corp (NYSE: FAF). Meaningful negative changes in fundamentals have recently occurred: the consensus estimate for December, 2024 decreased significantly, significant quarterly earnings deceleration occurred, and the consensus estimate for December, 2025 decreased significantly.

Significant negative changes in investment behavior have recently occurred for First American Financial Corp (NYSE: FAF): negative upside/downside volume developed.

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.

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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 (Low Neutral). The Value Trend Rating reflects consistent signals from PTR’s two proprietary measures of a stock’s attractiveness. First American Financial has a neutral Appreciation Score of 54 and a slightly negative Power Rating of 34, and the Low Neutral Value Trend Rating results.

Recent Price Action

First American Financial Corp (NYSE: FAF) stock closed at $54.61 on 5/8/24 after a slight decline of -0.5%. However, trading volume in this decline was below average at 68% of normal. The stock has been weak relative to the market over the last nine months but has risen 1.9% during the last week.

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