First American Corporation (New (FAF) Stock Analysis
Breakout setup
Financial Services · Insurance - Specialty
Hold if already holding. Not a fresh buy at $67.82, but acceptable to hold if already in. Reason: mixed signals — some dimensions strong, others weak.
First American Financial Corporation provides title insurance and settlement services through its title insurance and services segment, which contributed 93.6% of 2025 consolidated revenues. Policies are distributed via direct operations and independent agents across all 49... Read more
Hold if already holding. Not a fresh buy at $67.82, but acceptable to hold if already in. Reason: mixed signals — some dimensions strong, others weak. Chart setup: Golden cross, above all MAs, RSI 53, MACD bullish. Maintain position. Not compelling to add more. Score 6.8/10, moderate confidence.
Passes 8/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news boost analyst 0.50, earnings proximity 36d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.
About First American Corporation (New
About First American Corporation (New
First American Financial Corporation derived 93.6% of consolidated revenues in 2025 from its title insurance and services segment, which issues policies across all 49 states permitting title insurance, the District of Columbia, and internationally through direct operations in Canada, the United Kingdom, South Korea, Australia, and New Zealand. The company employed 19,102 people at December 31, 2025, with 12,143 in the United States and 6,959 outside. International operations accounted for approximately 7.6% of title insurance and services segment revenues in 2025.
First American earns revenue from premiums collected at closing plus ancillary escrow, settlement, and closing fees, with volume correlating directly to real estate transaction counts, interest rate levels, and home affordability. Policies flow through both a direct channel (captive sales representatives) and an agency channel (independent agents who retain a portion of collected premium and remit the remainder to First American as compensation for risk transfer). Major national competitors named in the 10-K include Fidelity National Financial, Inc., Old Republic International Corporation, and Stewart Title Guaranty Company. The home warranty segment, operating in 36 states, sells residential service contracts covering HVAC systems and appliances, with revenue tied to residential purchase volume. The company's federal savings bank subsidiary supplements earnings by investing escrow and trust deposits in fixed income securities, with the bank holding $6.8 billion in assets and $6.2 billion in deposits at December 31, 2025.
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First American's federal savings bank deposits consist primarily of funds held in trust pending real estate transaction closings rather than core retail deposits. When interest rates are elevated, net interest income from this transactional float supplements title premium earnings; during periods of declining transaction volumes, both premium revenue and float income compress simultaneously. The 10-K notes that the return on these funds deposited at the company's bank "tends to decline" during periods of unfavorable economic conditions, creating correlated pressure across the company's two primary earnings streams in any downturn scenario.
See also: Financial Services · Insurance - Specialty
From First American Corporation (New's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-06-17Recent Developments — First American Corporation (New
Latest news
- NEWS First American Executive Chairman Cancels Unvested Equity Awards - TipRanks — TipRanks negative
- NEWS First American Financial (FAF) is a top-ranked value stock: Should you buy? - MSN — MSN positive
- NEWS First American Financial (FAF) is a Top-Ranked Value Stock: Should You Buy? - Yahoo Finance — Yahoo Finance positive
- NEWS First American Title Introduces AgentNet® Assist: Title Intelligence, an AI-Powered Document Analysis Capability - Busin — Business Wire positive
- NEWS First American Financial (NYSE:FAF) Rating Increased to Strong-Buy at Zacks Research - MarketBeat — MarketBeat positive
Generated 2026-06-17T09:02:26Z.
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Rating Breakdown
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Frequently Asked Questions
Hold if already holding. Not a fresh buy at $67.82, but acceptable to hold if already in. Reason: mixed signals — some dimensions strong, others weak. Chart setup: Golden cross, above all MAs, RSI 53, MACD bullish. Maintain position. Not compelling to add more. Target $74.99 (+10.6%), stop $64.62 (−5.0%), A.R:R 1.6:1. Score 6.8/10, moderate confidence.
Take-profit target: $74.99 (+10.6% upside). Target $74.99 (+10.6%), stop $64.62 (−5.0%), A.R:R 1.6:1. Stop-loss: $64.62.
First American Corporation (New trades at a P/E of 10.2 (forward 9.1). TrendMatrix value score: 8.7/10. Verdict: Hold.
10 analysts cover FAF with a consensus score of 4.0/5. Average price target: $86.
What does First American Corporation (New do?First American Financial Corporation provides title insurance and settlement services through its title insurance and...
First American Financial Corporation provides title insurance and settlement services through its title insurance and services segment, which contributed 93.6% of 2025 consolidated revenues. Policies are distributed via direct operations and independent agents across all 49 states permitting title insurance, plus international markets including Canada, the UK, and South Korea. The company ranks second by U.S. market share per ALTA data; its home warranty segment adds coverage in 36 states.