First Advantage (NYSE:FA) Hits New 1-Year High Following Strong Earnings

First Advantage Co. (NYSE:FAGet Free Report)’s stock price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $22.95 and last traded at $22.4080, with a volume of 344388 shares trading hands. The stock had previously closed at $20.56.

The company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.The company’s quarterly revenue was up 14.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.27 EPS. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on FA shares. JPMorgan Chase & Co. boosted their price objective on First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, May 8th. Royal Bank Of Canada boosted their target price on shares of First Advantage from $17.00 to $21.00 and gave the company a “sector perform” rating in a research note on Monday. Citigroup raised their price target on First Advantage from $15.00 to $18.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Barclays upped their price objective 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. Finally, Stifel Nicolaus set a $18.00 target price on shares of First Advantage in a research report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, First Advantage currently has a consensus rating of “Hold” and a consensus price target of $19.00.

Check Out Our Latest Stock Analysis on FA

Insider Activity

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were 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 of the company’s stock, valued at $891,882.36. The trade was a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is currently owned by corporate insiders.

Institutional Trading of First Advantage

Institutional investors have recently modified their holdings of the company. KBC Group NV bought a new position in shares of First Advantage during the 1st quarter worth about $35,000. Versant Capital Management Inc grew 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 valued at $44,000 after purchasing an additional 783 shares during the period. Fifth Third Bancorp bought a new stake in shares of First Advantage in the 1st quarter valued at approximately $45,000. Clearstead Advisors LLC raised its holdings in shares of First Advantage by 192.8% in the 4th quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock worth $63,000 after buying an additional 2,853 shares in the last quarter. Finally, Quantbot Technologies LP bought a new position in shares of First Advantage during the 2nd quarter worth approximately $81,000. Institutional investors and hedge funds own 94.91% of the company’s stock.

First Advantage Price Performance

The company has a 50-day moving average of $18.54 and a 200 day moving average of $14.56. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The firm has a market cap of $3.86 billion, a P/E ratio of 755.13 and a beta of 1.17.

About First Advantage

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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.

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