FAF

First American Financial Corporation Financial Services - Title Insurance Investor Relations →

NO
21.5% ABOVE
↑ Moving away Was 14.1% last week
-15% -10% -5% 0% 5% 10% 15%+
Buy Threshold $55.44
14-Week RSI 68

First American Financial Corporation (FAF) closed at $67.34 as of 2026-02-02, trading 21.5% above its 200-week moving average of $55.44. The stock moved further from the line this week, up from 14.1% last week. The 14-week RSI sits at 68, indicating neutral momentum.

Over the past 771 weeks of data, FAF has crossed below its 200-week moving average 13 times. On average, these episodes lasted 7 weeks. Historically, investors who bought FAF at the start of these episodes saw an average one-year return of +26.7%.

With a market cap of $6.9 billion, FAF is a mid-cap stock. The company generates a free cash flow yield of 16.2%, which is notably high. Return on equity stands at 9.3%. The stock trades at 1.3x book value.

The company has been aggressively buying back shares, reducing its share count by 6.1% over the past three years.

Over the past 14.8 years, a hypothetical investment of $100 in FAF would have grown to $704, compared to $666 for the S&P 500. That represents an annualized return of 14.1% vs 13.6% for the index — confirming FAF as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.

Free cash flow has been declining at a -13.8% compound annual rate. A deteriorating cash flow trend warrants extra scrutiny — the stock may be cheap for a reason.

Growth of $100: FAF vs S&P 500

Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.

What Happens After FAF Crosses Below the Line?

Across 13 historical episodes, buying FAF when it crossed below its 200-week moving average produced an average return of +25.6% after 12 months (median +18.0%), compared to +26.1% for the S&P 500 over the same periods. 100% of those episodes were profitable after one year. After 24 months, the average return was +35.1% vs +45.8% for the index.

Each line shows $100 invested at the moment FAF crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.

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Historical Touches

FAF has crossed below its 200-week MA 13 times with an average 1-year return of +26.7% after recovery.

Crossed BelowRecoveredWeeksMax Depth1-Year ReturnReturn Since Touch
May 2011Jun 201132.0%+8.0%+604.2%
Aug 2011Jan 20122527.0%+30.6%+629.1%
Mar 2020May 2020926.5%+59.6%+136.2%
Jun 2020Jul 202032.1%+39.4%+74.5%
Oct 2020Nov 202048.7%+57.5%+66.9%
Jun 2022Jul 202257.8%+18.8%+52.7%
Aug 2022Jan 20231818.5%+23.6%+43.7%
Feb 2023Mar 202345.7%+11.3%+37.2%
Oct 2023Nov 202367.8%+23.9%+34.4%
Apr 2024May 202421.8%+16.3%+32.0%
May 2024Jul 202474.8%+4.9%+30.4%
May 2025Jun 202532.2%N/A+24.3%
Jul 2025Jul 202510.0%N/A+21.8%
Average7+26.7%

Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.

Data as of Friday close, 2026-02-02