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How to buy First American Financial Corporation stock | $50.2

Own First American Financial Corporation stock in just a few minutes.

Fact checked

First American Financial Corporation is an insurance-specialty business based in the US. First American Financial Corporation shares (FAF) are listed on the NYSE and all prices are listed in US Dollars. First American Financial Corporation employs 18,412 staff and has a trailing 12-month revenue of around USD$6.7 billion.

How to buy shares in First American Financial Corporation

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for First American Financial Corporation. Find the stock by name or ticker symbol: FAF. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until First American Financial Corporation reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$50.2, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of First American Financial Corporation, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of First American Financial Corporation. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

First American Financial Corporation share price

Use our graph to track the performance of FAF stocks over time.

First American Financial Corporation shares at a glance

Information last updated 2020-12-27.
Latest market closeUSD$50.2
52-week rangeUSD$28.6133 - USD$65.0814
50-day moving average USD$50.0374
200-day moving average USD$50.8601
Wall St. target priceUSD$63.6
PE ratio 9.1918
Dividend yield USD$1.84 (3.55%)
Earnings per share (TTM) USD$5.642

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy First American Financial Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

First American Financial Corporation price performance over time

Historical closes compared with the close of $50.2 from 2020-12-09

1 week (2021-01-07) -5.76%
1 month (2020-12-17) -5.85%
3 months (2020-10-15) -5.51%
6 months (2020-07-15) -4.83%
1 year (2020-01-15) -15.03%
2 years (2019-01-15) 7.22%
3 years (2018-01-13) N/A
5 years (2016-01-15) 51.80%

Is First American Financial Corporation under- or over-valued?

Valuing First American Financial Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of First American Financial Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

First American Financial Corporation's P/E ratio

First American Financial Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 9x. In other words, First American Financial Corporation shares trade at around 9x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

First American Financial Corporation's PEG ratio

First American Financial Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.04. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into First American Financial Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

First American Financial Corporation's EBITDA

First American Financial Corporation's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$1.1 billion.

The EBITDA is a measure of a First American Financial Corporation's overall financial performance and is widely used to measure a its profitability.

First American Financial Corporation financials

Revenue TTM USD$6.7 billion
Operating margin TTM 14.35%
Gross profit TTM USD$3.9 billion
Return on assets TTM 4.89%
Return on equity TTM 14.34%
Profit margin 9.61%
Book value $42.311
Market capitalisation USD$5.8 billion

TTM: trailing 12 months

Shorting First American Financial Corporation shares

There are currently 1.4 million First American Financial Corporation shares held short by investors – that's known as First American Financial Corporation's "short interest". This figure is 19% down from 1.7 million last month.

There are a few different ways that this level of interest in shorting First American Financial Corporation shares can be evaluated.

First American Financial Corporation's "short interest ratio" (SIR)

First American Financial Corporation's "short interest ratio" (SIR) is the quantity of First American Financial Corporation shares currently shorted divided by the average quantity of First American Financial Corporation shares traded daily (recently around 833084.61538462). First American Financial Corporation's SIR currently stands at 1.69. In other words for every 100,000 First American Financial Corporation shares traded daily on the market, roughly 1690 shares are currently held short.

However First American Financial Corporation's short interest can also be evaluated against the total number of First American Financial Corporation shares, or, against the total number of tradable First American Financial Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case First American Financial Corporation's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 First American Financial Corporation shares in existence, roughly 10 shares are currently held short) or 0.0167% of the tradable shares (for every 100,000 tradable First American Financial Corporation shares, roughly 17 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against First American Financial Corporation.

Find out more about how you can short First American Financial Corporation stock.

First American Financial Corporation share dividends

34%

Dividend payout ratio: 34.1% of net profits

Recently First American Financial Corporation has paid out, on average, around 34.1% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.55% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), First American Financial Corporation shareholders could enjoy a 3.55% return on their shares, in the form of dividend payments. In First American Financial Corporation's case, that would currently equate to about $1.84 per share.

While First American Financial Corporation's payout ratio might seem fairly standard, it's worth remembering that First American Financial Corporation may be investing much of the rest of its net profits in future growth.

First American Financial Corporation's most recent dividend payout was on 15 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 7 December 2020 (the "ex-dividend date").

First American Financial Corporation share price volatility

Over the last 12 months, First American Financial Corporation's shares have ranged in value from as little as $28.6133 up to $65.0814. A popular way to gauge a stock's volatility is its "beta".

FAF.US volatility(beta: 1.15)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while First American Financial Corporation's is 1.1517. This would suggest that First American Financial Corporation's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

First American Financial Corporation overview

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services. This segment also provides closing and/or escrow services; products and services involving the use of real property related data to mitigate risk or facilitates real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, and title evidence services, as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant records and images. This segment offers its products through a network of direct operations and agents in 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally. The Specialty Insurance segment provides property and casualty insurance comprising coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism, and other types of property damage. It also offers residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period; and auto insurance products. This segment markets its property and casualty insurance products through direct distribution channels, including marketing through its existing closing-service activities, as well as through a network of independent brokers in 36 states. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California.

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