First Advantage (NYSE:FA) Trading 5.1% Higher – Still a Buy?

First Advantage Co. (NYSE:FA) traded up 5.1% during trading on Tuesday . The company traded as high as $13.33 and last traded at $13.25. 949,952 shares were traded during mid-day trading, a decline of 16% from the average session volume of 1,125,591 shares. The stock had previously closed at $12.61.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Zacks Research downgraded shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Citigroup dropped their target price on shares of First Advantage from $16.00 to $15.00 and set a “neutral” rating on the stock in a research report on Friday, March 6th. Finally, Barclays raised shares of First Advantage from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $14.00 to $15.00 in a research report on Friday, March 6th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $16.75.

First Advantage Price Performance

The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The company has a market capitalization of $2.14 billion, a PE ratio of 409.67 and a beta of 1.14. The company’s 50-day simple moving average is $11.17 and its 200-day simple moving average is $12.99.

First Advantage (NYSE:FA) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.30 earnings per share (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 in the prior year, the company posted $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. As a group, sell-side analysts anticipate that First Advantage Co. will post 0.74 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD grew its position in First Advantage by 4.3% during 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 purchasing an additional 572,580 shares during the last quarter. Capital World Investors grew its position in First Advantage by 9.4% during the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock worth $132,204,000 after purchasing an additional 780,200 shares during the last quarter. Vanguard Group Inc. grew its position in First Advantage by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 7,613,968 shares of the company’s stock worth $117,179,000 after purchasing an additional 210,187 shares during the last quarter. Alliancebernstein L.P. grew its position in First Advantage by 18.4% during the 3rd quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock worth $95,815,000 after purchasing an additional 969,314 shares during the last quarter. Finally, Cat Rock Capital Management LP grew its position in First Advantage by 8.9% during the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock worth $48,571,000 after purchasing an additional 274,449 shares during the last quarter. 94.91% of the stock is owned by hedge funds and other institutional investors.

About First Advantage

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.