How to Invest in First American?
First American Investing Guide | FAF |
- Research First American's stock before investing in First American. It's a good idea to research the company and its stock by analyzing its financial statements, reading news articles, and studying its historical performance, including its growth strategy, change in net worth, competition, and potential risks.
- Choose a brokerage firm to buy shares of First American. We recommend well-established brokerages such as Charles Schwab, Fidelity, TD Ameritrade, and Robinhood, but in many ways, it will depend on your individual needs, preferences, and investment goals.
- Open an account at one of the brokerages you have selected. 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 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 regarding First Stock. Also, remember that 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. Below is a detailed guide on how to invest safely in First American.
Research First American Stock
Researching First American's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E).
About 89.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.27. Some equities with similar Price to Book (P/B) outperform the market in the long run. First American has Price/Earnings To Growth (PEG) ratio of 2.04. The entity last dividend was issued on the 20th of September 2024. The firm had 3:1 split on the July 20, 1998. 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. It employs 22233 people. To learn more about First American call Dennis Gilmore at 714 250 3000 or check out https://www.firstam.com. Other things to consider when investing in First
Another important aspect of First American's research is to evaluate the company's potential for future growth. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding First American's research are outlined below:
| First American is unlikely to experience financial distress in the next 2 years | |
| First American 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. Note however, debt could still be an excellent tool for First to invest in growth at high rates of return. | |
| First American has a strong financial position based on the latest SEC filings | |
| Over 89.0% of First American shares are owned by institutional investors | |
| On 27th of September 2024 First American paid $ 0.54 per share dividend to its current shareholders | |
| Latest headline from seekingalpha.com: First American Financial declares 0.54 dividend |
First American Quarterly Cash And Short Term Investments |
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Check First American's earnings reports
First American uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in First American. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to First American's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Use historical earnings surprises to time your First American position
Earnings surprises can significantly impact First American's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises First American's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-04-23 | 2015-03-31 | 0.31 | 0.35 | 0.04 | 12 | ||
2016-04-21 | 2016-03-31 | 0.37 | 0.44 | 0.07 | 18 | ||
2011-07-28 | 2011-06-30 | 0.23 | 0.3 | 0.07 | 30 | ||
2024-02-07 | 2023-12-31 | 0.77 | 0.69 | -0.08 | 10 | ||
2014-07-24 | 2014-06-30 | 0.5 | 0.58 | 0.08 | 16 | ||
2013-04-25 | 2013-03-31 | 0.41 | 0.33 | -0.08 | 19 | ||
2017-04-27 | 2017-03-31 | 0.43 | 0.52 | 0.09 | 20 | ||
2017-02-09 | 2016-12-31 | 0.82 | 0.72 | -0.1 | 12 |
Know First American's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as First American is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading First American backward and forwards among themselves. First American's institutional investor refers to the entity that pools money to purchase First American's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-06-30 | 1.7 M | Vaughan Nelson Scarbrgh & Mccullough Lp | 2024-06-30 | 1.4 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.2 M | Norges Bank | 2024-06-30 | 1.1 M | Charles Schwab Investment Management Inc | 2024-06-30 | 1.1 M | Lakewood Capital Management, Lp | 2024-06-30 | 1.1 M | Reinhart Mahoney Capital Management Inc | 2024-09-30 | 1 M | Perry Creek Capital Lp | 2024-06-30 | 1 M | Northern Trust Corp | 2024-06-30 | 1 M | Vanguard Group Inc | 2024-06-30 | 10.6 M | Fmr Inc | 2024-06-30 | 9.2 M |
Follow First American's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 6.49 B.Market Cap |
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Evaluate First American's profitablity
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | 0.01 | 0.02 | |
| Return On Equity | 0.04 | 0.07 |
Determining First American's profitability involves analyzing its financial statements and using various financial metrics to assess its ability to generate profits. Also, when deciding whether to invest in First American, it's important to look at multiple sources and consider different scenarios. For example, gross profit margin measures First American's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of First American's profitability and make more informed investment decisions.
Evaluate First American's management efficiency
The First American's current Return On Tangible Assets is estimated to increase to 0.02. The First American's current Return On Capital Employed is estimated to increase to 0.02. At this time, First American's Other Current Assets are most likely to increase significantly in the upcoming years. The First American's current Intangible Assets is estimated to increase to about 2.1 B, while Other Assets are projected to decrease to roughly 5.4 B. First American's management efficiency ratios could be used to measure how well First American manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 46.62 | 23.92 | |
| Tangible Book Value Per Share | 21.56 | 14.74 | |
| Enterprise Value Over EBITDA | 9.74 | 10.23 | |
| Price Book Value Ratio | 1.39 | 1.51 | |
| Enterprise Value Multiple | 9.74 | 10.23 | |
| Price Fair Value | 1.39 | 1.51 | |
| Enterprise Value | 3.4 B | 3 B |
Evaluating the management effectiveness of First American allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The First Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.0343 | Forward Dividend Yield 0.0343 | Forward Dividend Rate 2.16 | Beta 1.311 |
Basic technical analysis of First Stock
As of the 7th of November, First American shows the Downside Deviation of 1.05, coefficient of variation of 1133.74, and Mean Deviation of 0.8417. First American technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm First American jensen alpha, potential upside, skewness, as well as the relationship between the maximum drawdown and semi variance to decide if First American is priced favorably, providing market reflects its regular price of 62.62 per share. Given that First American has jensen alpha of 0.0064, we urge you to verify First American's prevailing market performance to make sure the company can sustain itself at a future point.Check First American's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific First American insiders, such as employees or executives, is commonly permitted as long as it does not rely on First American's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases First American insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Evaluate First American's Outstanding Corporate Bonds
First American issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. First American uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most First bonds can be classified according to their maturity, which is the date when First American has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| FAF 24 15 AUG 31 Corp BondUS31847RAH57 | View | |
| FIRST AMERN FINL Corp BondUS31847RAF91 | View | |
| US31847RAG74 Corp BondUS31847RAG74 | View |
First American's technical indicators
Using predictive indicators to make investment decisions involves analyzing First American's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0725 | |||
| Market Risk Adjusted Performance | 0.1897 | |||
| Mean Deviation | 0.8417 | |||
| Semi Deviation | 0.9222 | |||
| Downside Deviation | 1.05 | |||
| Coefficient Of Variation | 1133.74 | |||
| Standard Deviation | 1.12 | |||
| Variance | 1.26 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | 0.0064 | |||
| Total Risk Alpha | (0.15) | |||
| Sortino Ratio | (0.07) | |||
| Treynor Ratio | 0.1797 | |||
| Maximum Drawdown | 6.61 | |||
| Value At Risk | (1.71) | |||
| Potential Upside | 2.04 | |||
| Downside Variance | 1.1 | |||
| Semi Variance | 0.8504 | |||
| Expected Short fall | (0.96) | |||
| Skewness | (0.16) | |||
| Kurtosis | 1.41 |
| Risk Adjusted Performance | 0.0725 | |||
| Market Risk Adjusted Performance | 0.1897 | |||
| Mean Deviation | 0.8417 | |||
| Semi Deviation | 0.9222 | |||
| Downside Deviation | 1.05 | |||
| Coefficient Of Variation | 1133.74 | |||
| Standard Deviation | 1.12 | |||
| Variance | 1.26 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | 0.0064 | |||
| Total Risk Alpha | (0.15) | |||
| Sortino Ratio | (0.07) | |||
| Treynor Ratio | 0.1797 | |||
| Maximum Drawdown | 6.61 | |||
| Value At Risk | (1.71) | |||
| Potential Upside | 2.04 | |||
| Downside Variance | 1.1 | |||
| Semi Variance | 0.8504 | |||
| Expected Short fall | (0.96) | |||
| Skewness | (0.16) | |||
| Kurtosis | 1.41 |
Consider First American's intraday indicators
First American intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of First American stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 79301.09 | |||
| Daily Balance Of Power | (0.09) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 63.16 | |||
| Day Typical Price | 62.98 | |||
| Price Action Indicator | (0.72) | |||
| Period Momentum Indicator | (0.37) | |||
| Relative Strength Index | 43.87 |
First American Corporate Filings
F4 | 31st of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 25th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 23rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 25th of September 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify |
Choose a brokerage platform to buy First American's shares
In investing, finding the right broker is a crucial step for anyone looking to embark on a journey into the stock market. It all begins with a thorough comparison of costs and fees, as low-cost or commission-free brokers can significantly impact an investor's returns. However, the cheapest option is not always the best choice. The adventure continues with exploring various trading platforms, seeking one that is user-friendly, reliable, and functional. The ideal platform will provide the necessary research, analysis, and investment monitoring tools. As the quest goes on, it's essential to consider the different account types brokers offer, such as individual, joint, and retirement accounts. In addition, for those interested in trading on margin, brokers offering margin accounts should also be considered. The journey leads to the discovery of brokers that provide a wide range of investment options, including stocks, bonds, ETFs, and mutual funds. This diversity allows investors to build well-rounded portfolios that suit their needs and goals. Customer service is another crucial factor in this decision-making process. The perfect broker would have a responsive, knowledgeable, and available customer support team ready to assist with various issues or investment decisions. Aspiring investors should seek brokers with quality research, market analysis, and educational resources. These tools are essential for making informed decisions and improving investment knowledge. It's also vital to ensure that the broker is regulated by an appropriate regulatory body and has robust security measures to protect personal and financial information. Additionally, account minimums and funding options should be taken into consideration. A broker with flexible account minimums and various funding options, such as wire transfers, ACH transfers, or check deposits, will cater to different investor needs. A seamless mobile and web experience is a must in today's fast-paced world. The ideal broker will allow investors to manage their investments easily on the go. Finally, it is essential to consider various brokers' reviews and conduct reputation analysis. By reading online assessments and seeking recommendations, valuable insights into each broker's reputation can be gathered. After a thorough investigation, you can find a broker that checks all the boxes and aligns with their preferences and requirements regarding taking a position in First American.
Open brokerage account to buy First Stock
Once you've selected a broker, visit their website or a local branch to initiate the account-opening process. Most brokers offer online account opening, which is typically faster and more convenient. When you begin the process, you'll need to select the type of account you want to open. This may include individual, joint, or retirement accounts. Some brokers may also offer margin accounts, which allow you to trade on margin. Next, you'll need to complete the application form. Whether you're filling out an online or paper application, you'll need to provide personal information, such as your name, address, Social Security Number or other tax identification number, date of birth, and employment information. You may also be asked about your investment experience, financial situation, and goals. After completing the application form, review it carefully for accuracy and submit it to the broker. Some brokers may require you to provide additional documentation, such as a copy of your driver's license or passport, for identity verification. Once your application is submitted, the broker will review it and may run a background check or verify your credit history. You'll receive an email or notification with your new brokerage account details if your application is approved.
Fund your account to invest in First Stock
Once your account is open, you can fund it by linking your bank account to your brokerage account. To do this, log in to your brokerage account and look for an option to add or link a bank account. You will need to provide your bank account number and the routing number for your bank. This information can be found on your checks or by contacting your bank. After linking your bank account, you can initiate a transfer of funds from your bank account to your brokerage account. This process may vary depending on the brokerage, but generally, you will need to navigate to the funding or deposit section of the brokerage website or app. From there, you can choose the linked bank account and enter the amount you wish to transfer. Keep in mind that there may be limits on the amount you can transfer in a single transaction, and the transfer may take several business days to complete. Some brokerages also offer other funding options, such as wire transfers, mailing a check, or transferring assets from another brokerage. If you prefer to use one of these methods, check with your brokerage firm for specific instructions. Once the funds are in your brokerage account, you can use them to purchase investments such as stocks, bonds, mutual funds, or other financial instruments.
Place your First Stock order
Placing a First American purchase order involves providing instructions to your selected brokerage firm to aquare shares of First American on your behalf. First, your will need to access your brokerage account through their website or mobile app using your login credentials. Make sure you have sufficient funds in your account to cover the cost of the stock purchase, including any applicable fees or commissions. Once you are logged in, locate the trading platform or order entry section within the brokerage interface. It may be labeled as "Trade," "Order Entry," or something similar. Next, you will need to provide the necessary information to place your stock order. This typically includes: .
After entering the necessary information, review your order carefully to ensure it reflects your intentions accurately. When you are ready, submit your order by clicking the "Submit," "Place Order," or equivalent button. Your brokerage firm will then execute your order according to your instructions, subject to market conditions and the availability of shares. Keep in mind that market orders may be executed immediately, while limit orders, stop orders, and stop-limit orders will only be executed if the specified conditions are met. Finally, monitor your order status and confirm its execution. You can usually find this information in the "Order History" or "Order Status" section of your brokerage account.
| Ticker | Enter the ticker symbol, which is the unique series of letters representing the stock, e.g., FAF for First American | |
| Type | Choose the type of order you want to place. The most common order types are market orders, limit orders, stop orders, and stop-limit orders. Each order type has its own advantages and drawbacks, so be sure to research and understand them before placing your order. | |
| Quantity | Specify the number of shares you want to buy or sell | |
| Duration | Indicate the duration for which your order will be active. You can choose from options like "Day" (valid only for the current trading day) or "Good 'til Canceled" (valid until you manually cancel the order) |
Monitor your First Stock position
Monitoring your stock positions with your brokerage involves regularly checking the status and performance of your investments. Here's how you can monitor your stock positions using your brokerage account: First, access your account by signing in to your brokerage firm's website or mobile app using your login credentials. Once you're logged in, look for the section that displays your account information and portfolio holdings. This section may be labeled as "Portfolio," "Positions," "Holdings," or something similar. In this section, you'll generally find a list of the stocks and other investments that you own, along with relevant details such as the number of shares, the current market value, and the percentage change in value since the last trading day's close. You might also see the total cost of your investment, your current profit or loss, and the percentage gain or loss. Many brokerages also provide tools and features that allow you to analyze and track your stock positions more effectively. These may include:
As you continue to monitor your First Stock position, remember that in order to be an effective trader, it is critical to understand your entire portfolio's sensitivity to market volatility and how your single First American position affects your overall exposure to market risk. One of the techniques to manage your overall risk is pair trading, a market-neutral trading strategy enabling traders to profit from virtually any market condition, whether it is experiencing an uptrend or downtrend movement.
| Performance Charts | These charts visually represent the historical price movement of your stocks over different time frames. You can use them to assess the trends and volatility of your investments. | |
| Stock Alerts | You can set up custom alerts to receive notifications when a stock reaches a certain price, percentage change, or other criteria. This can help you stay informed about significant market movements affecting your investments. | |
| Watchlists | Create watchlists to track the performance of stocks you are interested in but have not yet purchased. This can help you identify potential opportunities or risks. | |
| Research Tools | Brokerages often provide access to research tools, such as stock screeners, analyst reports, and financial statements, to help you make more informed investment decisions. |
Moving together with First Stock
| 0.65 | ESNT | Essent Group | PairCorr |
| 0.86 | ACT | Enact Holdings | PairCorr |
| 0.61 | AGO | Assured Guaranty | PairCorr |
| 0.72 | AXS | AXIS Capital Holdings | PairCorr |
| 0.92 | FNF | Fidelity National | PairCorr |
| 0.88 | MTG | MGIC Investment Corp | PairCorr |
| 0.81 | AXS-PE | AXIS Capital Holdings | PairCorr |
Moving against First Stock
It's a good idea to monitor your stock positions regularly to ensure that your investments align with your financial goals and risk tolerance. Keep in mind that the stock market can be volatile, and it's essential to maintain a long-term perspective when evaluating your portfolio's performance.Follow First Stock across various news and media outlets
Far too much social signal, news, headlines, and media speculation about First American that are available to investors today. That information is available publicly through First media outlets and privately through word of mouth or via First internal channels. However, regardless of the origin, that massive amount of First data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of First American news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of First American relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to First American's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive First American alpha.