Wall Street predicts First American Financial Corp (FAF) stock to surge by 29.4%

First American Financial Corp [FAF] stock prices are up 1.26% to $66.46 at the moment. An important factor to consider is whether the stock is rising or falling in short-term value. The FAF shares have gain 1.16% over the last week, with a monthly amount glided 2.06%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

First American Financial Corp [NYSE: FAF] stock has seen the most recent analyst activity on December 10, 2024, when Keefe Bruyette downgraded its rating to a Mkt Perform but kept the price target unchanged to $80 for it. Previously, Keefe Bruyette upgraded its rating to Outperform on March 21, 2024, and elevated its price target to $69. On January 10, 2024, Deutsche Bank initiated with a Buy rating. Barclays started tracking the stock assigning a Equal Weight rating and suggested a price target of $53 on November 15, 2023. Stephens upgraded its rating to Overweight for this stock on February 10, 2023, and upped its price target to $72. In a note dated December 15, 2022, Keefe Bruyette downgraded an Mkt Perform rating on this stock but restated the target price of $61.

The stock price of First American Financial Corp [FAF] has been fluctuating between $51.60 and $70.92 over the past year. Currently, Wall Street analysts expect the stock to reach $86 within the next 12 months. First American Financial Corp [NYSE: FAF] shares were valued at $66.46 at the most recent close of the market. An investor can expect a potential return of 29.4% based on the average FAF price forecast.

Analyzing the FAF fundamentals

The First American Financial Corp [NYSE:FAF] reported sales of 5.88B for trailing twelve months, representing a surge of 17.90%. Gross Profit Margin for this corporation currently stands at 0.95% with Operating Profit Margin at 0.04%, Pretax Profit Margin comes in at 0.03%, and Net Profit Margin reading is 0.02%. To continue investigating profitability, this company’s Return on Assets is posted at 0.01, Equity is 0.03 and Total Capital is 0.02. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.49.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 65.85 points at the first support level, and at 65.23 for the second support level. However, for the 1st resistance point, the stock is sitting at 67.04, and for the 2nd resistance point, it is at 67.61.

Ratios To Look Out For

It’s worth pointing out that First American Financial Corp [NYSE:FAF]’s Current Ratio is 1.12. Considering the valuation of this stock, the price to sales ratio is 1.16, the price to book ratio is 1.39 and price to earnings (TTM) ratio is 53.15.

Transactions by insiders

Recent insider trading involved Seaton Mark Edward, EVP & Chief Financial Officer, that happened on Feb 25 ’25 when 37321.0 shares were sold. SVP, Chief Legal Officer, Cornehl Lisa W completed a deal on Feb 25 ’25 to sell 3057.0 shares. Meanwhile, EVP & Chief Financial Officer Seaton Mark Edward sold 12679.0 shares on Feb 24 ’25.

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