What a $29.6 Million Investment by One Hedge Fund in First American Indicates About the U.S. Housing Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 15 2025
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Source: NASDAQ.COM
Solel Partners' Investment: Boston-based Solel Partners acquired 460,700 shares of First American Financial for approximately $29.6 million, representing 5.7% of its reportable assets under management as of the third quarter.
First American Financial Overview: The company, a leading provider of title insurance and specialty financial services, reported a 41% year-over-year revenue increase in the third quarter, reaching $2 billion, despite challenges in the U.S. housing market.
Market Performance and Strategy: First American's shares have been volatile and underperformed compared to the S&P 500, but the company has increased its dividend and is repurchasing stock, indicating confidence in its financial stability.
Outlook for Real Estate Recovery: Solel Partners' investment suggests a belief in a potential recovery in real estate activity, with First American positioned to benefit from rising transaction volumes and advancements in technology and data analytics.
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Analyst Views on FAF
Wall Street analysts forecast FAF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FAF is 73.75 USD with a low forecast of 68.00 USD and a high forecast of 81.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 64.060
Low
68.00
Averages
73.75
High
81.00
Current: 64.060
Low
68.00
Averages
73.75
High
81.00
About FAF
First American Financial Corporation, through its subsidiaries, is engaged in the business of providing title insurance, settlement services and other financial services and risk solutions. Its segments include Title Insurance and Services, Home Warranty, and Corporate segment. The Title Insurance and Services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services, accommodates tax-deferred exchanges of real estate, and maintains, manages and provides access to title plant data and records. The Home Warranty segment provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. The Corporate segment includes investments in venture-stage companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Barclays Lowers First American Financial (FAF) Price Target to $68, Sees Loan Growth Opportunities
- Price Target Adjustment: Barclays has lowered First American Financial Corporation's (FAF) price target from $71 to $68 while maintaining an Equal Weight rating, indicating a cautious optimism about the company's prospects in consumer finance.
- Loan Market Outlook: Barclays anticipates a healthier mortgage origination market in 2026, believing that a 'benign' credit environment will support loan growth, potentially benefiting FAF's business opportunities.
- Digital Transformation: First American is accelerating its digital transformation by rolling out new title and escrow platforms like Endpoint and Sequoia, aiming to enhance operational efficiency through streamlined workflows and cost reductions.
- Compliance Challenges: Despite advancements in technology, FAF must navigate a heavily regulated industry to maintain compliance, with its performance influenced by real estate transaction volumes, cost control, and innovation capabilities.
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Davis Asset Management Increases FAF Stake to 1.1 Million Shares Valued at $70.66 Million
- Increased Holdings: In Q3 2025, Davis Asset Management boosted its stake in First American Financial Corporation (FAF) by 811,642 shares, bringing total holdings to 1.1 million shares valued at $70.66 million, indicating a bullish outlook on the company.
- Asset Management Shift: This increase positions FAF at 2.52% of Davis's 13F assets, although it remains outside the top five holdings, suggesting a growing emphasis on FAF within the fund's portfolio.
- Market Performance: FAF's stock reached a 52-week high of $68.64 in September 2025, up from a low of $53.09 in July, reflecting renewed market confidence in the real estate sector's recovery.
- Financial Health: With trailing twelve-month revenue of $7.08 billion and net income of $482.30 million, along with a 3.6% dividend yield, FAF demonstrates solid financial stability, enhancing investor confidence in its growth prospects.
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