First Advantage (NYSE:FA) Trading 7.4% Higher – Here’s Why

First Advantage Co. (NYSE:FA) shares traded up 7.4% on Friday . The stock traded as high as $16.53 and last traded at $16.7050. 285,176 shares were traded during mid-day trading, a decline of 74% from the average session volume of 1,077,585 shares. The stock had previously closed at $15.56.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. lifted their price objective on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Citigroup lifted their price objective on First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Barclays lifted their price objective on First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Finally, Stifel Nicolaus set a $18.00 price objective on First Advantage in a research note on Friday, May 8th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $18.50.

First Advantage Stock Performance

The company has a 50-day moving average price of $14.05 and a two-hundred day moving average price of $13.32. The stock has a market capitalization of $2.83 billion, a P/E ratio of 549.67 and a beta of 1.20. 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 (NYSE:FA) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.05. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter in the previous year, the firm earned $0.17 EPS. The business’s revenue for the quarter was up 8.6% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Equities analysts expect that First Advantage Co. will post 0.74 earnings per share for the current year.

Insider Transactions at First Advantage

In other First Advantage news, President Joelle M. Smith sold 23,334 shares of the company’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total value of $350,010.00. Following the transaction, the president directly owned 19,393 shares in the company, valued at $290,895. This represents a 54.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Lindsey Clark sold 4,921 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $15.69, for a total value of $77,210.49. Following the completion of the transaction, the director owned 56,844 shares in the company, valued at $891,882.36. This represents a 7.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On First Advantage

A number of institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD increased its stake in First Advantage by 4.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company’s stock worth $202,757,000 after acquiring an additional 572,580 shares during the last quarter. Capital World Investors increased its stake in First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock worth $132,204,000 after acquiring an additional 780,200 shares during the last quarter. Vanguard Group Inc. increased its stake in First Advantage by 2.8% in the 3rd quarter. Vanguard Group Inc. now owns 7,613,968 shares of the company’s stock worth $117,179,000 after acquiring an additional 210,187 shares during the last quarter. Alliancebernstein L.P. increased its stake in First Advantage by 18.4% in the 3rd quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock worth $95,815,000 after acquiring an additional 969,314 shares during the last quarter. Finally, Cat Rock Capital Management LP increased its stake in First Advantage by 8.9% in the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock worth $48,571,000 after acquiring an additional 274,449 shares during the last quarter. 94.91% of the stock is currently owned by institutional investors.

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.