I recommend waiting for a better discount before investing in First American Financial Corporation (FAF).

The price of First American Financial Corporation (NYSE: FAF) closed at $54.41 in the last session, down -1.11% from day before closing price of $55.02. In other words, the price has decreased by -$0.61 from its previous closing price. On the day, 1040857 shares were traded. FAF stock price reached its highest trading level at $55.75 during the session, while it also had its lowest trading level at $54.18.

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Ratios:

We take a closer look at FAF’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 4.65 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 18.80. In the meantime, Its Debt-to-Equity ratio is 0.43 whereas as Long-Term Debt/Eq ratio is at 0.43.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Stephens on February 10, 2023, Upgraded its rating to Overweight and sets its target price to $72 from $65 previously.

On December 15, 2022, Keefe Bruyette Downgraded its rating to Mkt Perform which previously was Outperform but kept the price unchanged to $61.

Credit Suisse Downgraded its Outperform to Neutral on April 01, 2022, whereas the target price for the stock was revised from $97 to $74.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on May 23 when Leavell Christopher Michael sold 39,206 shares for $59.61 per share. The transaction valued at 2,336,913 led to the insider holds 166,465 shares of the business.

Valuation Measures:

As of this moment, First’s Price-to-Earnings (P/E) ratio for their current fiscal year is 22.42, and their Forward P/E ratio for the next fiscal year is 8.78. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.75 while its Price-to-Book (P/B) ratio in mrq is 1.22.

Stock Price History:

Over the past 52 weeks, FAF has reached a high of $69.75, while it has fallen to a 52-week low of $43.54. The 50-Day Moving Average of the stock is 58.25, while the 200-Day Moving Average is calculated to be 54.17.

Shares Statistics:

According to the various share statistics, FAF traded on average about 720.01K shares per day over the past 3-months and 1.03M shares per day over the past 10 days. A total of 104.60M shares are outstanding, with a floating share count of 99.93M. Insiders hold about 3.53% of the company’s shares, while institutions hold 87.10% stake in the company. Shares short for FAF as of Jan 30, 2023 were 2.09M with a Short Ratio of 1.86M, compared to 2.12M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.02% and a Short% of Float of 2.37%.

Dividends & Splits

The forward annual dividend rate for FAF is 2.08, which was 1.80 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 3.27%, it implies a Forward Annual Dividend Yield of 3.61%. The stock’s 5-year Average Dividend Yield is 3.16.

Earnings Estimates

The company has 6 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.91 for the current quarter, with a high estimate of $1.08 and a low estimate of $0.65, while EPS last year was $1.17. The consensus estimate for the next quarter is $1.56, with high estimates of $1.74 and low estimates of $1.43.

Analysts are recommending an EPS of between $5.9 and $5.17 for the fiscal current year, implying an average EPS of $5.61. EPS for the following year is $6.27, with 4 analysts recommending between $7 and $5.58.

Revenue Estimates

According to 5 analysts, the current quarter’s revenue is expected to be $1.56B. It ranges from a high estimate of $1.69B to a low estimate of $1.43B. As of the current estimate, First American Financial Corporation’s year-ago sales were $2.03B, an estimated decrease of -23.10% from the year-ago figure. For the next quarter, 5 analysts are estimating revenue of $1.76B, a decrease of -14.80% over than the figure of -$23.10% in the same quarter last year. There is a high estimate of $1.9B for the next quarter, whereas the lowest estimate is $1.62B.

A total of 5 analysts have provided revenue estimates for FAF’s current fiscal year. The highest revenue estimate was $7.1B, while the lowest revenue estimate was $6.35B, resulting in an average revenue estimate of $6.8B. In the same quarter a year ago, actual revenue was $7.61B, down -10.60% from the average estimate. Based on 4 analysts’ estimates, the company’s revenue will be $7.18B in the next fiscal year. The high estimate is $7.41B and the low estimate is $6.99B. The average revenue growth estimate for next year is up 5.50% from the average revenue estimate for this year.