First American Stock Today

FAF Stock  USD 58.18  1.08  1.89%   

Performance

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Odds Of Distress

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First American is trading at 58.18 as of the 23rd of April 2024. This is a 1.89 percent increase since the beginning of the trading day. The stock's lowest day price was 56.92. First American has a very small chance of experiencing financial distress in the next few years, but has generated negative returns over the last 90 days. Equity ratings for First American are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 28th of February 2023 and ending today, the 23rd of April 2024. Click here to learn more.
Business Domain
Insurance
IPO Date
28th of May 2010
Category
Financial Services
Classification
Financials
First American Financial Corporation, through its subsidiaries, provides financial services. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California. First American operates under InsuranceSpecialty classification in the United States and is traded on New York Stock Exchange. The company has 103.56 M outstanding shares of which 1.16 M shares are currently shorted by investors with about 1.38 days to cover. More on First American

First Stock Highlights

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. First American's investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding First American or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.
CEODennis Gilmore
Thematic IdeaInsurance (View all Themes)
Old Names[Fire & Flower Holdings Corp, Fire & Flower Holdings Corp]
Business ConcentrationProperty & Casualty Insurance, Insurance - Specialty, Financial Services, NYSE Composite, SP Midcap 400, Insurance, Financials, Insurance, Insurance—Specialty, Financial Services (View all Sectors)
Average Analyst Recommendation
Analysts covering First American report their recommendations after researching First American's financial statements, talking to executives and customers, or listening in on First American's conference calls. The current trade recommendation is based on an ongoing consensus estimate among financial analysts covering First American. The First consensus assessment is calculated by taking the average forecast from all of the analysts covering First American.
Financial Strength
Based on the analysis of First American's profitability, liquidity, and operating efficiency, First American is performing exceptionally good at the present time. It has a great chance to report excellent financial results in May. Financial strength of First American is based on its profitability, leverage, liquidity, source of funds, and operating efficiency.
Current ValueLast YearChange From Last Year 10 Year Trend
Asset Turnover0.620.3573
Way Up
Slightly volatile
Gross Profit Margin0.90.8223
Significantly Up
Pretty Stable
Total Current Liabilities1.3 B1.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.3 B2.2 B
Sufficiently Up
Slightly volatile
Total Assets12.1 B16.8 B
Way Down
Slightly volatile
Total Current Assets2.3 B3.6 B
Way Down
Slightly volatile
First American's financial strength is of vital concern to both outside investors and internal stakeholders. Efficiency and cost control are keys to First American's success, along with its ability to generate sufficient cash flow to pay bills, repay debt, and make a consistent year-to-year profit.
First American's bond ratings measure its overall creditworthiness, which in many ways corresponds to the cost of borrowing for an issuer. These ratings assign a letter grade to all of First American's outstanding corporate bonds that indicate their credit quality. We use reports published by private self-sufficient rating services such as Standard & Poor's or Fitch Ratings Inc. to evaluate a bond issuer's financial strength or its ability to pay a bond's principal and interest.
Financial leverage usually refers to the use of borrowed funds to amplify returns from an investment. In general, analyzing the relationship between debt to total assets helps investors to understand First American's financial leverage. It provides some insight into what part of First American's total assets is financed by creditors.
By using current balance sheet information, investors can analyze the liability, assets, and equity on First American's books and decide whether to invest or hold. Statistics such as return on equity (ROE), debt to equity (D/E) help investors determine how First American deploys its capital and how much of that capital is borrowed.
Liquidity
First American cash flow analysis is essential to understand how it generates and spends money over a specific period. It can also help you figure out where your money is going and how much cash you have available at a given moment. The company has 1.39 B in debt with debt to equity (D/E) ratio of 0.5, which is OK given its current industry classification. First American has a current ratio of 0.38, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist First American until it has trouble settling it off, either with new capital or with free cash flow. So, First American's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like First American sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for First to invest in growth at high rates of return. When we think about First American's use of debt, we should always consider it together with cash and equity.

Free Cash Flow

86.36 Million
First American (FAF) is traded on New York Stock Exchange in USA. It is located in 1 First American Way, Santa Ana, CA, United States, 92707-5913 and employs 19,210 people. First American is listed under Property & Casualty Insurance category by Fama And French industry classification. The company currently falls under 'Mid-Cap' category with a total capitalization of 5.91 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate First American's market, we take the total number of its shares issued and multiply it by First American's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities. First American runs under Insurance sector within Financials industry. The entity has 103.56 M outstanding shares of which 1.16 M shares are currently shorted by investors with about 1.38 days to cover. First American has about 1.22 B in cash with 354.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 23.39.
Check First American Probability Of Bankruptcy
Ownership Allocation
First American retains a total of 103.56 Million outstanding shares. The majority of First American outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in First American to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in First American. Please pay attention to any change in the institutional holdings of First American as this could imply that something significant has changed or is about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
Check First Ownership Details

First Stock Price Odds Analysis

In reference to a normal probability distribution, the odds of First American jumping above the current price in 90 days from now is about 47.36%. The First American probability density function shows the probability of First American stock to fall within a particular range of prices over 90 days. Considering the 90-day investment horizon the stock has a beta coefficient of 1.6178. This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, First American will likely underperform. Additionally, first American has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite.
  Odds Below 58.18HorizonTargetOdds Above 58.18
52.28%90 days
 58.18 
47.36%
Based on a normal probability distribution, the odds of First American to move above the current price in 90 days from now is about 47.36 (This First American probability density function shows the probability of First Stock to fall within a particular range of prices over 90 days) .

First Stock Institutional Holders

Institutional Holdings refers to the ownership stake in First American that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of First American's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing First American's value.
InstituionRecorded OnShares
Geode Capital Management, Llc2023-12-31
1.6 M
Lsv Asset Management2023-12-31
1.3 M
Bank Of New York Mellon Corp2023-12-31
1.3 M
Vaughan Nelson Scarbrgh & Mccullough Lp2023-12-31
1.2 M
Norges Bank2023-12-31
1.2 M
Anchor Capital Advisors Inc2023-12-31
M
Perry Creek Capital Lp2023-12-31
M
Northern Trust Corp2023-12-31
992.8 K
Millennium Management Llc2023-12-31
902.2 K
Vanguard Group Inc2023-12-31
10.1 M
Blackrock Inc2023-12-31
9.5 M
View First American Diagnostics

First American Historical Income Statement

First American Income Statement is one of the three primary financial statements used for reporting First's overall financial performance over a current year or for a given accounting period. An Income Statement sometimes referred to as the statement of First American revenue and expense. First American Income Statement primarily focuses on the company's revenues and expenses during a particular period.
At this time, First American's Total Revenue is most likely to increase significantly in the upcoming years. The First American's current Gross Profit is estimated to increase to about 5.4 B, while Selling General Administrative is projected to decrease to roughly 1.8 B. View More Fundamentals

First Stock Against Markets

Picking the right benchmark for First American stock is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in First American stock price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for First American is critical whether you are bullish or bearish towards First American at a given time. Please also check how First American's historical prices are related to one of the top price index indicators.

Be your own money manager

Our tools can tell you how much better you can do entering a position in First American without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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First American Corporate Directors

First American corporate directors refer to members of a First American board of directors. The board of directors generally takes responsibility for the First American's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of First American's board members must vote for the resolution. The First American board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Anthony AndersonIndependent DirectorProfile
Mark OmanIndependent DirectorProfile
Thomas McKernanIndependent DirectorProfile
Virginia UeberrothIndependent DirectorProfile

How to buy First Stock?

Before investing in First American, you must ensure you fully understand your financial goals and how diversified (or not) your overall investments are now. Then, after you clearly understand your investment objectives, consider investing in First American. To buy First American stock, you can follow these steps:
  • Choose a brokerage firm: You need to select a brokerage firm to buy shares of First American. Some popular options include Charles Schwab, Fidelity, TD Ameritrade, and Robinhood.
  • Open an account: Once you have chosen a brokerage firm, you will need to open an account. You will be required to provide personal information, such as your name, address, and Social Security number.
  • Fund your account: You will need to deposit funds into your brokerage account to purchase First American stock. You can do this by transferring funds from your bank account or other investment accounts.
  • Place your order: Once you have located First American stock in your brokerage account, you can place your order to buy it. You will need to specify the number of shares you want to buy and the price you are willing to pay.
  • Monitor your investment: After you have purchased First American stock, you should monitor your investment to track its performance and make informed decisions about buying, selling, or holding the stock
It's important to note that investing in stocks, such as First American, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember various factors, including economic indicators, change in net worth, political events, company-specific news, and investor sentiment, can influence the stock market. These factors can cause fluctuations in stock prices and lead to market volatility affecting your buy or sell decision. However, volatility can also present opportunities for investors to make gains by buying stocks when prices are low and selling when they are high. It's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. For more information on how to buy First Stock please use our How to Invest in First American guide.

Already Invested in First American?

The danger of trading First American is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of First American is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than First American. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile First American is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether First American is a strong investment it is important to analyze First American's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First American's future performance. For an informed investment choice regarding First Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First American. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more detail on how to invest in First Stock please use our How to Invest in First American guide.
Note that the First American information on this page should be used as a complementary analysis to other First American's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Complementary Tools for First Stock analysis

When running First American's price analysis, check to measure First American's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First American is operating at the current time. Most of First American's value examination focuses on studying past and present price action to predict the probability of First American's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First American's price. Additionally, you may evaluate how the addition of First American to your portfolios can decrease your overall portfolio volatility.
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Is First American's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First American. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.38)
Dividend Share
2.1
Earnings Share
2.07
Revenue Per Share
57.56
Quarterly Revenue Growth
(0.15)
The market value of First American is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First American's value that differs from its market value or its book value, called intrinsic value, which is First American's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First American's market value can be influenced by many factors that don't directly affect First American's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First American's value and its price as these two are different measures arrived at by different means. Investors typically determine if First American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.