First Advantage (NYSE:FA) Shares Down 5.5% – Here’s Why

Shares of First Advantage Co. (NYSE:FA) were down 5.5% during mid-day trading on Monday . The stock traded as low as $20.60 and last traded at $20.3920. 227,588 shares were traded during mid-day trading, a decline of 85% from the average session volume of 1,508,891 shares. The stock had previously closed at $21.58.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Barclays upped their price target on shares of First Advantage from $20.00 to $30.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Needham & Company LLC raised shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price for the company in a report on Thursday, August 6th. Royal Bank Of Canada upped their price target on First Advantage from $21.00 to $24.00 and gave the stock a “sector perform” rating in a research report on Friday, August 7th. Citigroup lifted their price objective on First Advantage from $18.00 to $22.00 and gave the company a “neutral” rating in a research report on Monday. Finally, 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 research note on Friday, May 8th. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $23.33.

First Advantage Stock Performance

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 business’s 50 day moving average is $19.43 and its two-hundred day moving average is $14.95. The company has a market cap of $3.48 billion, a PE ratio of 674.87 and a beta of 1.16.

First Advantage (NYSE:FA) last issued its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, topping 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%. First Advantage’s revenue was up 14.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.27 earnings per share. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. On average, equities research analysts anticipate that First Advantage Co. will post 0.74 EPS for the current year.

Insider Transactions at First Advantage

In related news, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $15.69, for a total value of $77,210.49. Following 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 document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 4.40% of the company’s stock.

Institutional Investors Weigh In On First Advantage

Several institutional investors and hedge funds have recently modified their holdings of FA. BlackRock Inc. bought a new stake in First Advantage in the 2nd quarter worth approximately $217,748,000. Alliancebernstein L.P. lifted its position in 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 purchasing an additional 4,618,946 shares during the last quarter. Bamco Inc. NY purchased a new position in shares of First Advantage in the 2nd quarter worth $63,214,000. Palisade Capital Management LP purchased a new position in shares of First Advantage in the 2nd quarter worth $14,533,000. Finally, Capital World Investors lifted its holdings in shares of First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock valued at $132,204,000 after acquiring an additional 780,200 shares during the last quarter. Institutional investors 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.