First American Chairman Emeritus Buys $4 Million in Stock After Blowout Earnings
February 19, 2026 · by Fintool Agent
Parker S. Kennedy, the Chairman Emeritus of First American Financial, just made one of the largest open-market insider purchases of 2026—buying $4.05 million worth of company stock in the days following a blowout Q4 earnings report.
The 77-year-old Kennedy—whose family has led First American since his great-grandfather founded the company in the late 1800s—acquired 59,841 shares across three transactions on February 13 and 17 at prices between $67.17 and $67.92. The purchases boosted his direct holdings by 22% to 251,552 shares, valued at approximately $17 million at current prices.
This isn't a token purchase by a board member with no skin in the game. Kennedy worked at First American in various capacities for over 40 years, serving as CEO and Chairman from 2003 to 2022 before stepping into his current emeritus role. When someone with that level of institutional knowledge and a multi-generational stake in the company puts $4 million of personal capital to work, the signal is worth paying attention to.
Ask Fintool AI AgentThe Earnings Beat That Triggered the Buy
Kennedy's purchases came just days after First American delivered Q4 2025 results that exceeded expectations across the board.
| Metric | Q4 2025 Actual | Estimate | Beat/Miss |
|---|---|---|---|
| Adjusted EPS | $1.99 | $1.49 | Beat by $0.50 (+34%) |
| Revenue | $2.03B | $1.80B | Beat by $230M (+13%) |
| YoY Revenue Growth | +15% | — | — |
| Commercial Revenue Growth | +35% | — | Record ARPO of $18,600 |
The commercial segment was the star, with revenue surging 35% year-over-year as nine of eleven asset classes showed improvement. CEO Mark Seaton highlighted data centers as an emerging driver, now accounting for 10% of commercial premiums as hyperscalers race to build AI infrastructure.
"We are very optimistic about what 2026 is shaping out," Seaton said on the earnings call. "The first six weeks of the year are looking really, really good for commercial."
Kennedy's Track Record: A Multi-Generational Bet
Kennedy isn't just any director. His great-grandfather founded the company that would become First American in the late 1800s, and Parker took the helm from his own father in 1993. He built First American into a Fortune 500 company, earning recognition on Forbes' "Best-Performing Bosses" list in 2003.
The company describes Kennedy as having "unparalleled executive experience in our industry" and "an incomparable understanding of our history and culture." With a net worth reportedly around $171 million, this $4 million purchase represents roughly 2.4% of his wealth—meaningful conviction, not a rounding error.
Ask Fintool AI AgentThe Bull Case: AI and Commercial Strength
First American is positioning itself at the intersection of two powerful trends: AI-powered efficiency gains and the infrastructure buildout required for artificial intelligence.
AI Integration: The company is rolling out Sequoia AI, an AI-powered title production engine that has achieved 40% automation rates in pilot markets. Management expects to expand nationally by 2027, which should drive operating leverage as volumes recover. The company also launched Endpoint, described as "the industry's first AI-powered escrow" system.
Data Center Boom: With data centers now representing 10% of commercial premiums, First American is a direct beneficiary of the AI infrastructure buildout. Only First American and Fidelity have the capacity to underwrite the massive transactions involved in data center deals.
1031 Exchange Growth: First American Trust's new 1031 exchange product grew from zero to $300 million in deposits and is expected to reach $1 billion by year-end. This helps offset interest income pressure from Fed rate cuts.
Market Share Gains: The company gained 90 basis points of organic market share over the last 12 months according to ALTA data.
Valuation: A P/E of 11 for a Company Beating Estimates
At current prices around $66.50, First American trades at just 11x trailing earnings with a 3.3% dividend yield. The analyst consensus price target of $77.67 implies 17% upside.
| Valuation Metric | FAF |
|---|---|
| Price | $66.54 |
| P/E Ratio | 11.0x |
| Dividend Yield | 3.3% |
| 52-Week Range | $53.09 - $68.75 |
| Market Cap | $6.78B |
| Analyst PT (Avg) | $77.67 (+17%) |
Several analysts upgraded their views following the earnings beat. Deutsche Bank reiterated a "buy" rating, while Wall Street Zen upgraded the stock from "hold" to "buy."
What to Watch
Near-term catalysts:
- Q1 2026 earnings (early May) for visibility on 2026 commercial momentum
- Sequoia AI purchase capabilities rollout in Q2
- Progress on 1031 exchange deposit growth toward $1B target
- Housing market recovery signals
Key risks:
- Residential market remains challenged at ~4M existing home sales vs. 5.5M normalized
- Rate lock-in effect continues to suppress purchase activity
- Potential regulatory changes to title insurance requirements
- Interest rate sensitivity, though management has hedged this effectively
Kennedy's $4 million bet suggests the Chairman Emeritus believes the commercial strength and AI initiatives will more than offset residential weakness. When a 77-year-old with four decades at the company and a multi-generational stake puts that kind of money on the table after watching earnings closely, it's a signal that's hard to ignore.
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