Traders Buy High Volume of Call Options on First Advantage (NYSE:FA)

First Advantage Co. (NYSE:FA) was the target of unusually large options trading on Monday. Stock traders bought 6,131 call options on the stock. This is an increase of approximately 47,062% compared to the average daily volume of 13 call options.

First Advantage Trading Up 2.8%

Shares of First Advantage stock opened at $21.15 on Wednesday. The stock has a fifty day simple moving average of $16.77 and a 200 day simple moving average of $13.92. First Advantage has a 12-month low of $8.82 and a 12-month high of $21.19. The company has a market capitalization of $3.63 billion, a P/E ratio of 705.00 and a beta of 1.17. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage (NYSE:FA) last issued its quarterly earnings data 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%.The company’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.17 EPS. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. On average, sell-side analysts anticipate that First Advantage will post 0.74 earnings per share for the current fiscal year.

Insider Activity at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction that occurred on 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 sale, the director directly owned 56,844 shares in the company, valued at approximately $891,882.36. The trade was a 7.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joelle M. Smith sold 23,334 shares of the business’s stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $15.00, for a total value of $350,010.00. Following the completion of the transaction, the president directly owned 19,393 shares in the company, valued at approximately $290,895. This trade represents a 54.61% 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. Company insiders own 4.40% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. KBC Group NV bought a new stake in First Advantage in the 1st quarter worth about $35,000. Versant Capital Management Inc boosted its stake in shares of First Advantage by 47.1% in the 2nd quarter. Versant Capital Management Inc now owns 2,445 shares of the company’s stock worth $44,000 after buying an additional 783 shares during the last quarter. Fifth Third Bancorp purchased a new position in shares of First Advantage in the 1st quarter worth approximately $45,000. Clearstead Advisors LLC grew its holdings 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 valued at $63,000 after acquiring an additional 2,853 shares in the last quarter. Finally, Quantbot Technologies LP bought a new position in shares of First Advantage in the second quarter valued at approximately $81,000. 94.91% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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

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.