First Advantage (NYSE:FA) Trading Down 4.6% – Here’s Why

First Advantage Co. (NYSE:FA)’s share price dropped 4.6% during trading on Monday . The company traded as low as $10.38 and last traded at $10.37. Approximately 599,801 shares changed hands during mid-day trading, a decline of 47% from the average daily volume of 1,141,756 shares. The stock had previously closed at $10.87.

Analyst Ratings Changes

A number of analysts have weighed in on FA shares. 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. Zacks Research lowered shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Finally, Citigroup decreased their price objective on shares of First Advantage from $16.00 to $15.00 and set a “neutral” rating for the company in a research report on Friday, March 6th. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $16.75.

First Advantage Stock Down 5.3%

The firm has a market cap of $1.79 billion, a price-to-earnings ratio of 343.00 and a beta of 1.19. The firm has a 50 day moving average of $12.48 and a 200 day moving average of $13.80. 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 posted its quarterly earnings results on Thursday, February 26th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.First Advantage’s revenue for the quarter was up 36.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.18 EPS. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, sell-side analysts predict that First Advantage Co. will post 0.74 earnings per share for the current year.

Institutional Investors Weigh In On First Advantage

Several hedge funds and other institutional investors have recently bought and sold shares of FA. Price T Rowe Associates Inc. MD raised 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 valued at $202,757,000 after purchasing an additional 572,580 shares during the period. Capital World Investors grew its stake in shares of First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock valued at $132,204,000 after buying an additional 780,200 shares during the period. Vanguard Group Inc. grew its stake in shares of First Advantage by 2.8% in the 3rd quarter. Vanguard Group Inc. now owns 7,613,968 shares of the company’s stock valued at $117,179,000 after buying an additional 210,187 shares during the period. Alliancebernstein L.P. increased its position in First Advantage by 18.4% in the 3rd quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock valued at $95,815,000 after buying an additional 969,314 shares in the last quarter. Finally, Cat Rock Capital Management LP raised its stake 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 buying an additional 274,449 shares during the period. 94.91% of the stock is 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.