First Advantage (NYSE:FA) Sees Large Volume Increase Following Strong Earnings

First Advantage Co. (NYSE:FA) shares saw unusually-high trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 1,602,999 shares changed hands during trading, an increase of 62% from the previous session’s volume of 992,364 shares.The stock last traded at $11.4020 and had previously closed at $11.69.

The company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $0.04. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The company’s revenue for the quarter was up 36.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.18 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

First Advantage News Summary

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q4 results beat expectations — First Advantage reported $0.30 EPS vs. a $0.26 consensus and delivered ~36.8% year‑over‑year revenue growth, signaling solid underlying demand. This is the core driver behind initial bullish market reactions. First Advantage Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company announced a $100M share buyback and set a 2026 revenue target of $1.625B–$1.70B while highlighting momentum in its digital identity business — moves that support cash return and long‑term growth narratives. First Advantage outlines $1.625B–$1.7B 2026 revenue target with new $100M buyback amid digital identity momentum
• Neutral Sentiment: FY‑2026 EPS guidance set to $1.15–$1.25 (company midpoint roughly in line with consensus) — the range reduces surprise risk but left some investors wanting clearer upside; guidance is neither a material beat nor a material miss. First Advantage Corporation 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Shares fell despite the beat — reasons likely include a high valuation (P/E near 367), the stock trading below its 50‑ and 200‑day moving averages, and investor disappointment that buyback/guidance didn’t signal faster margin expansion or larger capital return. Intraday volatility and lower-than-average volume amplified the move down. Market coverage noted both the initial rally and subsequent pullback. Why are First Advantage (FA) shares soaring today?

Analysts Set New Price Targets

FA has been the topic of a number of research analyst reports. JPMorgan Chase & Co. reduced their price target on shares of First Advantage from $21.00 to $17.00 and set an “overweight” rating on the stock in a research note on Friday, November 7th. Barclays decreased their price target on First Advantage from $18.00 to $14.00 and set an “equal weight” rating for the company in a research note on Friday. Finally, Zacks Research cut shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $18.25.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Clearstead Advisors LLC lifted 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 acquiring an additional 2,853 shares during the last quarter. Quantbot Technologies LP purchased a new stake in First Advantage in the second quarter worth $81,000. Parkside Financial Bank & Trust boosted its holdings in First Advantage by 22.8% in the second quarter. Parkside Financial Bank & Trust now owns 7,164 shares of the company’s stock valued at $119,000 after acquiring an additional 1,328 shares in the last quarter. BNP Paribas Financial Markets boosted its holdings in First Advantage by 105.7% in the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after acquiring an additional 3,682 shares in the last quarter. Finally, Tower Research Capital LLC TRC raised its holdings in First Advantage by 503.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock worth $132,000 after purchasing an additional 6,617 shares in the last quarter. 94.91% of the stock is currently owned by institutional investors.

First Advantage Stock Down 2.0%

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 firm has a market capitalization of $1.99 billion, a P/E ratio of 381.73 and a beta of 1.17. The company’s fifty day simple moving average is $13.23 and its 200 day simple moving average is $14.21.

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.