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How to Buy First American Financial Stock

First American Financial Corp

First American Financial is a specialty insurance company located in California, United States, which is part of the Financial Services sector, and is traded under the ticker FAF on the NYSE exchange.

First American Financial stock last closed at $61.05, up 2.04% from the previous day, and has increased 12.83% in one year. It has underperformed other stocks in the Insurance - Specialty industry by 0.15 percentage points. First American Financial stock is currently +23.21% from its 52-week low of $49.55, and -6.86% from its 52-week high of $65.55.

As of Mar 28, 2024, there are 103M shares of FAF outstanding. The market value of FAF is $6.29B. In the past 24 hours, 600,327 FAF shares were traded.

How to Buy First American Financial Stock

Not sure how to invest in First American Financial stock? Here's how.
  1. Choose where to buy First American Financial stock: You need to choose an online brokerage, but don't worry - we've analyzed dozens of online stock brokerages and apps to help you decide where to buy First American Financial stock.
  2. Open a brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've found.
  3. Fund your investment account: Select your payment method and add your details.
  4. Research First American Financial stock: The First American Financial ticker symbol is FAF. Is First American Financial stock a good investment? Should you buy shares of FAF? How do FAF's underlying business fundamentals look? Do top analysts think First American Financial is a good buy? Why has FAF's stock price moved recently? (Hint: Our stock market analysis tools can help you understand if FAF is a good stock to buy).
  5. Make your FAF buy order: Decide if you will purchase FAF shares at the current market price or use a limit order to purchase FAF shares at a specific price.
  6. Get the latest news on your investment in FAF: Create a watchlist to keep track of your position in First American Financial stock.

Step 1: Choose where to buy First American Financial stock

You will need a brokerage account in order to access the NYSE market and buy FAF shares.

A brokerage account is an investment account that enables you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.

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Step 2: Open a brokerage account

Now that you've selected the right brokerage, it's time to fill out some personal info so you can buy FAF stock today.

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  2. Enter your personal info to create your new trading account.
  1. Submit your details by pressing the "Create Account" button.
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Step 3: Fund your investment account

Now that you've finished signing up on app for investing, you need to deposit funds:

Watch the tutorial below for more details transferring money into your new brokerage account.

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Step 4: Research First American Financial stock

Once you have figured out the best place to buy First American Financial stock, it's crucial to evaluate their stock before you buy, so you truly wrap your head around the risk as well as the opportunity.

First American Financial stock quick numbers

FAF Price
$61.05
1w %
3.47%
1y %
12.83%
5y %
17.36%
P/E
29.35x
P/B
1.3x
P/S
1.06x
PEG
N/A
Revenue
$6.00B
Earnings
$216.80M
Fore. Rev. Growth
8.76%
Fore. Earn. Growth
N/A
Market Cap
$6.29B
Next Earnings
Apr 25, 2024
Next Dividend
N/A

Fundamentals of First American Financial

WallStreetZen was created to help average investors do better fundamental analysis.

You can view all of the due diligence checks on FAF's stock page.

Is FAF stock undervalued?

Investors use many financial metrics, analyses, models, and charts to gauge FAF's intrinsic value.

Using relative valuations ratios:

  • FAF may be undervalued based on its P/E ratio of 29.35x, relative to Insurance - Specialty industry P/E ratio of 30.99x
  • FAF may be undervalued based on its P/B ratio of 1.3x, relative to Insurance - Specialty industry P/B ratio of 1.66x

You can do more valuation research on FAF's stock here.

A quick look at FAF Financials

Passed Financial Due Diligence Checks:

  • FAF profit margin has gone up from 3.5% to 3.6% in the past year.

Failed Financial Due Diligence Checks:

  • FAF's operating cash flow of $354.30M allows it to safely service it's debt of $2.19B.
  • FAF earnings of $408.20M is not enough to cover its interest payments.
  • FAF has a relatively high debt to equity ratio of 2.46.
  • Total FAF debt is higher than 5 years ago, relative to shareholder equity.

Is FAF stock a Buy, Hold, or Sell, according to analysts?

Out of 3 sell side analysts who track FAF, the consensus analyst rating on FAF is a Buy

It's important to note that analyst ratings are not stock recommendations, nor are they investment advice.

You can dig deeper into what analysts are forecasting on the First American Financial stock forecast page.

FAF Technicals

SMA10
57.49
SMA20
57.19
SMA50
58.51
SMA100
59.38
SMA200
58.56
MACD
0.23
MACD Signal
-0.38
MACD Histogram
0.61
RSI
64.4
Stochastic %K
91.2
Stochastic %D
81.37
StochRSI %K
93.68
StochRSI %D
86.29

Is FAF Growing Revenue?

Last year, FAF earnings were $216.80M. During the last five year, FAF's earnings have gone up by -13.15% per year. This was slower than the Insurance - Specialty industry average of 2.94%.

Last year, FAF revenue was $6.00B. During the last five year, FAF's revenue has increased by 0.87% per year. This was slower than the Insurance - Specialty industry average of 9.54%.

Learn more about FAF's earnings and revenue performance here.

Who is buying/selling FAF?

In the last year, insiders at FAF have sold more shares than they have bought.

Steven A. Adams, VP Chief Accounting Officer of FAF, was the latest FAF insider to sell. They sold $22,318.29 worth of FAF shares on Feb 22, 2024.

Dig into more about who owns FAF stock here.

Does FAF stock generate passive income?

First American Financial pays a dividend of 3.46%, compared to the Insurance - Specialty industry's average dividend yield of 10.57%. If you owned $1,000 worth of FAF stock, you would have received $34.56 last year.

First American Financial dividend payments have consistently grown over the past decade and have remained stable.

Dig into more analysis about First American Financial dividend yield and history here.

What do other investors have to say about FAF?

One of the primary reasons eToro is our top-rated brokerage is because of its social trading community.

Click below to find out what other community members have to say.

Step 5: Make your FAF buy order

You have two main types of orders:

  • Market order: A market order is an order to buy or sell a stock at the best available price.
    Market orders are generally fine for most investors.
  • Limit order: A limit order allows you to buy or sell a stock at a specific price (or better).
    If you want to be certain you're buying or selling at a particular dollar amount limit, use a limit order.

Click the Open button and your broker will execute your order.

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Step 6: Get the latest news on your investment in FAF

Now that you own some shares in FAF, you'll want to keep up with your new investment.

Put FAF on a watchlist to monitor your FAF stock.

FAF Feed

How to Buy Stock in First American Financial

To reiterate, here are the 6 steps to buy stock in First American Financial:

  1. Choose where to buy First American Financial stock
  2. Open a brokerage account
  3. Fund your investment account
  4. Research First American Financial stock
  5. Make your FAF buy order
  6. Get the latest news on your investment in FAF

If you need a place to buy stocks, eToro is our favorite venue.

Get Started with eToro Today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

If you want to monitor your new investment in First American Financial, add FAF to your watchlist below.

NYSE: FAF
$61.05+1.22 (+2.04%)
Updated Mar 28, 2024
Open eToro Account
NYSE: FAF
$61.05+1.22 (+2.04%)
Updated Mar 28, 2024
Open eToro Account

FAQ

How much does it cost to buy one First American Financial share?

As of Mar 28, 2024, it costs $61.05 to buy one share of First American Financial stock.

Remember, eToro's fractional share buying allows you to buy partial shares of stocks and ETFs. Even if you only have $10, you can buy 0.164 shares of FAF.

Get Started with eToro Today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Is now a good time to buy First American Financial stock?

According to 3 Wall Street analysts who monitor First American Financial, their consensus recommendation is to buy First American Financial stock.

What is the best way to buy First American Financial stock?

One way to place an order for First American Financial stock is with a brokerage account.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.