First Advantage (NYSE:FA) Trading 4.7% Higher – Time to Buy?

Shares of First Advantage Co. (NYSE:FAGet Free Report) were up 4.7% during trading on Monday . The company traded as high as $20.35 and last traded at $20.4680. Approximately 36,108 shares traded hands during trading, a decline of 97% from the average daily volume of 1,298,379 shares. The stock had previously closed at $19.54.

Wall Street Analyst Weigh In

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

View Our Latest Research Report on First Advantage

First Advantage Trading Up 6.3%

The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61. The company has a market cap of $3.56 billion, a PE ratio of 689.00 and a beta of 1.17. The business’s 50-day simple moving average is $16.44 and its 200-day simple moving average is $13.84.

First Advantage (NYSE:FAGet Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.05. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same period in the prior year, the firm earned $0.17 EPS. First Advantage’s revenue for the quarter was up 8.6% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, analysts expect that First Advantage Co. will post 0.74 EPS for the current fiscal year.

Insider Activity at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the firm’s stock in a transaction dated Monday, June 8th. The stock was 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 in the company, valued at $891,882.36. This trade represents a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 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 dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total value of $350,010.00. Following the completion of the sale, the president directly owned 19,393 shares of the company’s stock, valued at $290,895. This represents a 54.61% decrease in their position. The disclosure for this sale is available in the SEC filing. 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

Hedge funds have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD lifted its holdings in First Advantage by 4.3% in 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 holdings in First Advantage by 9.4% during the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock valued at $132,204,000 after purchasing an additional 780,200 shares during the last quarter. Alliancebernstein L.P. grew its holdings in First Advantage by 18.4% during the third quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock valued at $95,815,000 after purchasing an additional 969,314 shares during the last quarter. Cat Rock Capital Management LP raised its position in shares of First Advantage by 8.9% in the fourth quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock valued at $48,571,000 after purchasing an additional 274,449 shares during the period. Finally, JPMorgan Chase & Co. raised its position in shares of First Advantage by 8.4% in the third quarter. JPMorgan Chase & Co. now owns 3,315,150 shares of the company’s stock valued at $51,020,000 after purchasing an additional 255,641 shares during the period. Institutional investors and hedge funds own 94.91% of the company’s stock.

First Advantage Company Profile

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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.

Further Reading

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