First Advantage (NYSE:FA) Raised to Buy at Needham & Company LLC

First Advantage (NYSE:FA) was upgraded by stock analysts at Needham & Company LLC from a “hold” rating to a “buy” rating in a research note issued on Thursday, Marketbeat.com reports. The brokerage currently has a $28.00 price target on the stock. Needham & Company LLC’s price objective would indicate a potential upside of 16.62% from the company’s current price.

A number of other analysts have also issued reports on FA. Citigroup lifted their target price on First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Royal Bank Of Canada increased their price target on First Advantage from $17.00 to $21.00 and gave the company a “sector perform” rating in a report on Monday. JPMorgan Chase & Co. raised their price objective on First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Barclays lifted their price objective on 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 First Advantage in a research report on Friday, May 8th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $22.67.

First Advantage Price Performance

Shares of NYSE FA opened at $24.01 on Thursday. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85. First Advantage has a 1-year low of $8.82 and a 1-year high of $25.15. The company has a market capitalization of $4.12 billion, a price-to-earnings ratio of 800.33 and a beta of 1.16. The business has a 50-day moving average of $18.86 and a 200-day moving average of $14.69.

First Advantage (NYSE:FA) last announced its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.06. 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 $0.27 earnings per share. The firm’s revenue was up 14.9% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. On average, equities analysts anticipate that First Advantage will post 0.74 EPS for the current fiscal year.

Insider Activity

In other news, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction dated 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 transaction, the director directly owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. The trade was a 7.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company’s stock.

Institutional Trading of First Advantage

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of First Advantage in the second quarter valued at approximately $217,748,000. Alliancebernstein L.P. increased its stake in shares of First Advantage by 724.5% during the second quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock valued at $87,311,000 after acquiring an additional 4,618,946 shares during the period. Capital World Investors raised 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 worth $132,204,000 after purchasing an additional 780,200 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in 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 worth $202,757,000 after purchasing an additional 572,580 shares in the last quarter. Finally, Estuary Capital Management LP acquired a new stake in First Advantage in the first quarter worth approximately $6,558,000. 94.91% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting First Advantage

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

• Positive Sentiment: Q2 earnings and revenue beat estimates: First Advantage reported adjusted diluted EPS of $0.35, above the $0.29 consensus and up from $0.27 a year earlier. Revenue rose 14.9% year over year to $448.8 million, while adjusted net income increased 30.8% to $61.4 million. First Advantage Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year outlook was raised: Management now expects 2026 revenue of $1.67 billion to $1.71 billion, adjusted EBITDA of $472 million to $486 million, and adjusted EPS of $1.23 to $1.29. The EPS outlook is above the roughly $1.21 analyst consensus, signaling confidence in continued operating momentum. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Capital returns and deleveraging support the shares: First Advantage repurchased $18.7 million of stock and made a further $45 million voluntary debt prepayment, following a $25 million payment in May. These actions can improve balance-sheet flexibility and enhance per-share value. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment improved: Needham upgraded First Advantage from “Hold” to “Buy” and set a $28 price target, implying additional upside from the referenced market price.
• Neutral Sentiment: Valuation and margins remain considerations: The stock is trading near its 52-week high, and its reported P/E ratio is elevated. Adjusted EBITDA margin declined modestly year over year to 28.6%, which could limit upside if growth or profitability slows.

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.