Alert: Negative Investment/Fundamental Signals (4/18/24)-First American Financial Corp (NYSE: FAF)

Extremely important negative changes in investment behavior have recently occurred for First American Financial Corp (NYSE: FAF): the stock’s recent price decline challenged its longer term uptrend, and its longer term price trend turned down.

First American Financial Corp (NYSE: FAF). Notable negative changes in fundamentals have recently occurred: the stock’s power rating fell below 50, and significant quarterly earnings deceleration occurred.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

Current PriceTarget Research Rating

With future capital returns forecasted to be above the cost of capital, FAF is expected to be a modest Value Builder.

First American Financial has a current Value Trend Rating of C (Low Neutral). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing highly consistent signals. First American Financial has a neutral Appreciation Score of 52 and a neutral Power Rating of 43, leading to the Low Neutral Value Trend Rating.

Recent Price Action

On 4/18/24, First American Financial Corp (NYSE: FAF) stock rose modestly by 0.5%, closing at $55.24. However, trading volume in this advance was unusually low at 58% of normal. The stock has performed in line with the market over the last nine months and is unchanged during the last week.