Insider Sales Surge at First American Financial Corp. as Executives Rebalance Portfolios While Major Investor Continues Buying Blitz.

Insider Selling at First American Financial Corp. – What It Means for Shareholders

Wajner Matthew F. – the executive vice‑president and chief financial officer – sold 2,174 shares of First American Financial Corp. (FAF) on February 17, 2026, at a price of $66.22, reducing his holding from 40,703 to 38,529 shares. The sale, while modest relative to his overall stake, coincides with a flurry of insider activity across the company: the CEO, the chief legal officer, and the chief accounting officer each sold roughly 13,700, 3,700, and 1,200 shares, respectively. In contrast, the company’s largest shareholder, Kennedy Parker S., has been buying aggressively, adding almost 50,000 shares in a single filing. The net effect of these transactions is a slight dilution of insider ownership, but the overall concentration remains high.

The timing of Wajner’s sell order is noteworthy. It came just two days after a quarterly earnings report that beat expectations and pushed the stock close to its 52‑week high of $68.75. Despite the bullish market sentiment—social media buzz at 282 % and a positive sentiment score of +74—the shares are trading slightly below the recent peak, reflecting a typical post‑earnings pullback. For investors, the insider sell could be interpreted in several ways: a routine portfolio rebalancing, a signal that management believes the stock is fairly valued, or a hedge against potential downside in a competitive insurance sector.

What This Means for Investors

From an investment perspective, insider selling does not automatically spell trouble. In fact, the sheer volume of shares remaining under executive control (over 38 k for Wajner alone) suggests confidence in the company’s trajectory. Moreover, the concurrent buying by Kennedy Parker S. indicates that institutional stakeholders are still bullish. The current P/E of 11.31 and a price‑to‑book of 1.29 position FAF at a reasonable valuation within the insurance industry, especially given its recent revenue beat and proximity to its 52‑week high. If the company continues to deliver on its revenue and earnings targets, the insider selling may simply reflect normal liquidity needs rather than a pessimistic outlook.

Profile of Wajner Matthew F.

Wajner’s transaction history paints the picture of an executive who balances short‑term liquidity with long‑term commitment. His February 4 purchase of 2,735 shares at $0.00 (a typical “price of zero” transaction that reflects a vesting event) increased his holding to 40,703 shares. The February 17 sale reduced this by about 5 %. Over the past year, Wajner has been a net buyer, with the majority of his trades occurring during vesting periods of restricted stock units (RSUs). His current holdings of 38,529 shares represent a substantial stake that aligns with the company’s long‑term strategic goals. The pattern suggests that Wajner views FAF as a core component of his financial plan, rather than a speculative position.

Bottom Line

While the February 17 insider sell adds a modest layer of volatility to FAF’s share price, the broader context—strong earnings, high insider concentration, and concurrent buying—indicates that First American Financial Corp. remains on a solid footing. Investors should monitor subsequent filings for any larger shifts in insider ownership, but at present, the company’s fundamentals and management’s continued stake suggest a cautiously optimistic outlook for the future.