First Advantage (NYSE:FA) Shares Gap Down – Here’s Why

First Advantage Co. (NYSE:FA)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $23.59, but opened at $21.14. First Advantage shares last traded at $21.0370, with a volume of 2,322,519 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Royal Bank Of Canada boosted their price objective on First Advantage from $21.00 to $24.00 and gave the stock a “sector perform” rating in a report on Friday, August 7th. Needham & Company LLC raised shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price on the stock in a research note on Thursday, August 6th. JPMorgan Chase & Co. lifted their target price on shares of First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a research note on Friday, May 8th. Finally, Citigroup increased their price target on shares of First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, First Advantage currently has a consensus rating of “Moderate Buy” and an average price target of $22.67.

First Advantage Stock Performance

The company has a 50 day simple moving average of $19.19 and a 200-day simple moving average of $14.84. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85. The stock has a market cap of $3.61 billion, a P/E ratio of 699.67 and a beta of 1.16.

First Advantage (NYSE:FA) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.First Advantage’s quarterly revenue was up 14.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.27 EPS. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. On average, equities analysts expect that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Insider Buying and Selling

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 shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the transaction, the director directly owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. This trade represents a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by insiders.

Institutional Investors Weigh In On First Advantage

A number of institutional investors have recently made changes to their positions in the business. KBC Group NV purchased a new position in First Advantage in the 1st quarter worth $35,000. Versant Capital Management Inc boosted its position in First Advantage by 47.1% during the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company’s stock valued at $44,000 after buying an additional 783 shares during the period. Fifth Third Bancorp purchased a new stake in First Advantage during the first quarter valued at about $45,000. Clearstead Advisors LLC boosted its position in First Advantage by 192.8% during the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock valued at $63,000 after buying an additional 2,853 shares during the period. Finally, State of Wyoming bought a new position in shares of First Advantage during the second quarter valued at about $81,000. Hedge funds and other institutional investors own 94.91% of the company’s stock.

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.