First Advantage (NYSE:FA) Shares Up 7.4% – Still a Buy?

First Advantage Co. (NYSE:FA) was up 7.4% during mid-day trading on Friday . The company traded as high as $16.53 and last traded at $16.7050. Approximately 285,176 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 1,077,585 shares. The stock had previously closed at $15.56.

Wall Street Analyst Weigh In

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

First Advantage Stock Up 7.3%

The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The firm has a market cap of $2.86 billion, a price-to-earnings ratio of 555.87 and a beta of 1.20. The stock’s 50 day moving average is $13.94 and its 200 day moving average is $13.29.

First Advantage (NYSE:FA) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.26 EPS for the quarter, beating 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 quarter last year, the firm earned $0.17 EPS. The firm’s revenue for the quarter was up 8.6% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Analysts forecast that First Advantage Co. will post 0.74 EPS for the current year.

Insider Buying and Selling

In other First Advantage news, President Joelle M. Smith sold 23,334 shares of First Advantage stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $15.00, for a total value of $350,010.00. Following the transaction, the president owned 19,393 shares in the company, valued at approximately $290,895. The trade was a 54.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $15.69, for a total transaction of $77,210.49. Following the completion of the transaction, the director owned 56,844 shares in the company, valued at approximately $891,882.36. This trade represents a 7.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in FA. Brighton Jones LLC acquired a new position in First Advantage in the fourth quarter worth approximately $257,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in First Advantage by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company’s stock worth $501,000 after purchasing an additional 1,471 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in First Advantage by 7.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,233 shares of the company’s stock worth $3,371,000 after purchasing an additional 16,664 shares during the period. Prudential Financial Inc. acquired a new position in First Advantage in the 2nd quarter worth approximately $167,000. Finally, Russell Investments Group Ltd. boosted its stake in First Advantage by 627.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 67,178 shares of the company’s stock worth $1,116,000 after purchasing an additional 57,946 shares during the period. Institutional investors and hedge funds own 94.91% of the company’s stock.

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.