First Advantage (NYSE:FA) Sees Strong Trading Volume After Earnings Beat

First Advantage Co. (NYSE:FA) saw unusually-high trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 1,602,999 shares were traded during mid-day trading, an increase of 62% from the previous session’s volume of 992,364 shares.The stock last traded at $11.4020 and had previously closed at $11.69.

The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.26 by $0.04. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same quarter last year, the company earned $0.18 EPS. First Advantage’s revenue was up 36.8% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

Key Headlines Impacting First Advantage

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q4 earnings beat — First Advantage reported $0.30 EPS vs. consensus $0.26 and revenue grew ~36.8% year-over-year, signaling strong topline momentum and margin improvement. Read More.
• Positive Sentiment: $100M buyback and raised revenue ambition — Management outlined a $1.625B–$1.7B 2026 revenue target and authorized a $100M share buyback, which can support EPS and investor sentiment amid the company’s digital-identity growth narrative. Read More.
• Neutral Sentiment: FY2026 EPS guidance roughly in line — First Advantage set FY26 EPS of $1.150–$1.250 versus a consensus near $1.170; revenue guidance roughly meets or slightly exceeds Street expectations, so guidance is not a major surprise. Read More.
• Neutral Sentiment: Full earnings materials available — Management commentary, the earnings presentation and transcript are posted (useful for investors wanting color on digital-identity growth, margin levers and buyback timing). Read More. Read More.
• Negative Sentiment: Barclays trims price target — Barclays cut its target from $18 to $14 and assigned an “equal weight” rating; while the new $14 target still implies upside vs. current levels, the cut signals more cautious near-term analyst sentiment. Read More.

Wall Street Analyst Weigh In

Several equities research analysts have commented on FA shares. Barclays dropped their target price on First Advantage from $18.00 to $14.00 and set an “equal weight” rating on the stock in a report on Friday. JPMorgan Chase & Co. decreased their target price on First Advantage from $21.00 to $17.00 and set an “overweight” rating for the company in a research report on Friday, November 7th. Finally, Zacks Research downgraded First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $18.25.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Clearstead Advisors LLC lifted its position in shares of First Advantage by 192.8% in the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock worth $63,000 after buying an additional 2,853 shares in the last quarter. Quantbot Technologies LP bought a new stake in First Advantage in the 2nd quarter worth approximately $81,000. Parkside Financial Bank & Trust raised its holdings in shares of First Advantage by 22.8% during the 2nd quarter. Parkside Financial Bank & Trust now owns 7,164 shares of the company’s stock worth $119,000 after acquiring an additional 1,328 shares in the last quarter. BNP Paribas Financial Markets boosted its position in shares of First Advantage by 105.7% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after acquiring an additional 3,682 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in shares of First Advantage by 503.2% in the second quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock valued at $132,000 after purchasing an additional 6,617 shares in the last quarter. Hedge funds and other institutional investors own 94.91% of the company’s stock.

First Advantage Trading Down 1.5%

The company has a market cap of $2.00 billion, a PE ratio of 383.67 and a beta of 1.17. The stock’s 50 day moving average is $13.16 and its 200-day moving average is $14.17. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage Company Profile

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company’s core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.