Parker S. Kennedy, a member of the board at First American Financial Corp (NYSE: FAF), disclosed three purchases of the company’s common stock in a Form 4 filed with the Securities and Exchange Commission. The combined transactions, executed on February 13 and February 17, 2026, amount to 59,841 shares with an aggregate value of $4,050,101, and all were reported with transaction code "P" for purchase.
Details of the individual trades in the filing show an initial purchase on February 13 of 15,000 shares at a weighted average price of $67.173. The per-share prices for that lot ranged from $66.69 to $67.44. On February 17, the filing records two additional buys: 14,841 shares at a weighted average of $67.7016, with prices between $67.48 and $67.83; and 30,000 shares at a weighted average price of $67.9249, with that lot’s range noted as $67.705 to $68.020.
Following these transactions, Kennedy holds 251,552 shares directly. The filing also lists indirect ownership: 2,165,546 shares held through Kennedy Enterprises, L.P., where Kennedy serves as the sole general partner.
The Form 4 filing comes as market data show FAF trading at $66.15, with a price-to-earnings ratio of 11.03 and a dividend yield of 3.33%. An InvestingPro Fair Value assessment indicated the stock appears undervalued, and the company received an overall financial health score labeled "GREAT" at 3.03 on the same platform. Those data points were noted in conjunction with the insider transactions and may have been factors in Kennedy’s decision to increase his direct stake.
First American’s most recent quarterly report for the fourth quarter of 2025 provides context for the timing of the purchases. The company reported earnings per share of $1.99, substantially above the $1.38 expectation, representing a 44.2% surprise. Revenue for the quarter totaled $2.05 billion, a figure that exceeded forecasts by 13.89%. The filing and market details did not disclose any mergers or acquisitions during the period, and there were no recent analyst upgrades or downgrades recorded for the company in the information accompanying the disclosure.
Investors tracking insider activity will note both the size of Kennedy’s purchases and his broader ownership position, including the substantial indirect holdings through his limited partnership. The filing’s explicit transaction dates, share counts, weighted average prices and price ranges provide a clear record of the trades. The company’s recent quarterly performance and the market valuation metrics cited alongside the filing give additional data points that market participants may consider when assessing the significance of this insider buying.
While the Form 4 lays out the mechanics of the transactions and the company’s latest reported financial performance, it does not include commentary on Kennedy’s motivations beyond the filing itself. Similarly, the absence of analyst actions or reported deal activity in the accompanying information leaves certain external perspectives and strategic developments unspecified.
Key points
- Parker S. Kennedy purchased 59,841 shares of First American common stock across three transactions on February 13 and February 17, 2026, for a total of $4,050,101.
- After the buys, Kennedy directly owns 251,552 shares and indirectly owns 2,165,546 shares through Kennedy Enterprises, L.P.
- First American reported a strong Q4 2025: EPS of $1.99 (versus $1.38 expected) and revenue of $2.05 billion, beating forecasts by 13.89%.
Risks and uncertainties
- Analyst activity - There were no recent analyst upgrades or downgrades reported alongside the filing, leaving limited third-party consensus movement to contextualize the insider purchases (impacts investors and market analysts).
- Corporate actions - The reporting indicates no mergers or acquisitions during the period, so potential strategic changes that could affect valuation remain unspecified (impacts company strategy and market expectations).
- Motivation disclosure - The Form 4 details the transactions but does not explain Kennedy’s specific motivations for these purchases (impacts investor interpretation of insider intent).