First Advantage (NYSE:FA) Posts Quarterly Earnings Results

First Advantage (NYSE:FA) issued its quarterly earnings results on Thursday. The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.21 by $0.05, Briefing.com reports. 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 posted $0.17 EPS. First Advantage’s revenue was up 8.6% compared to the same quarter last year. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Price Performance

NYSE:FA traded up $0.20 during mid-day trading on Friday, hitting $15.96. 1,987,760 shares of the stock traded hands, compared to its average volume of 1,153,215. First Advantage has a 12-month low of $8.82 and a 12-month high of $19.01. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The company has a market cap of $2.75 billion, a PE ratio of 532.00 and a beta of 1.13. The business’s 50-day moving average price is $11.75 and its 200 day moving average price is $12.89.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. increased their price objective on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a report on Friday. Barclays upped their price target on First Advantage from $15.00 to $20.00 and gave the company an “overweight” rating in a research report on Friday. Citigroup lowered their price target on shares of First Advantage from $16.00 to $15.00 and set a “neutral” rating on the stock in a report on Friday, March 6th. Finally, Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a research report on Friday. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $17.75.

Insider Activity at First Advantage

In other news, President Joelle M. Smith sold 23,334 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total transaction of $350,010.00. Following the completion of the transaction, the president owned 19,393 shares of the company’s stock, valued at approximately $290,895. The trade was a 54.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD grew its holdings in shares of First Advantage by 4.3% during the fourth 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 in the last quarter. Alliancebernstein L.P. grew its holdings in shares of First Advantage by 18.4% during the third 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 in the last quarter. Cat Rock Capital Management LP grew its holdings in shares of First Advantage by 8.9% during the fourth 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 in the last quarter. Sunriver Management LLC grew its holdings in shares of First Advantage by 13.2% during the fourth quarter. Sunriver Management LLC now owns 2,661,286 shares of the company’s stock worth $38,668,000 after purchasing an additional 310,672 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of First Advantage by 5.6% during the fourth quarter. State Street Corp now owns 1,843,953 shares of the company’s stock worth $26,793,000 after purchasing an additional 97,223 shares in the last quarter. Hedge funds and other institutional investors own 94.91% of the company’s stock.

Trending Headlines about First Advantage

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

• Positive Sentiment: First Advantage delivered Q1 adjusted EPS of $0.26, topping estimates of $0.21, while revenue rose 8.6% year over year to $385.2 million and adjusted EBITDA increased 14.3%. First Advantage Reports First Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its 2026 outlook and expects margin expansion in the second half, which suggests improving profitability and execution. First Advantage reaffirms 2026 outlook while expecting adjusted EBITDA margins around 29% in 2H
• Positive Sentiment: JPMorgan raised its price target on First Advantage to $18 from $15 and reiterated an overweight rating, implying further upside from current levels. Benzinga report on JPMorgan price target increase
• Neutral Sentiment: First Advantage said its management team will participate in upcoming investor conferences, which could help keep the stock in focus but does not change fundamentals on its own. First Advantage to Participate in Upcoming Investor Conferences
• Neutral Sentiment: The company’s FY 2026 guidance was reaffirmed rather than raised, and revenue guidance remains roughly in line with expectations, which tempers the near-term excitement. First Advantage keeps 2026 guidance, sees margin lift to 29%

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.